The Economy of Iran
The Rial, Inflation and Everyday Life
The rial has lost most of its value, inflation has been chronic, and Iranians use dollars, gold and other assets to protect savings.
When money loses value.
Depreciation
The rial fell from roughly 32,000 to the dollar in 2015 to several hundred thousand or more by the mid-2020s.
Toman
Iranians often quote prices in tomans, equal to ten rials.
Inflation
Annual inflation has often exceeded 30 to 40 per cent.
Savings
People buy gold, cars, property and foreign currency as inflation hedges.
A shopping trip
Prices of basics rise between visits, and wages struggle to keep up.
Assuming inflation only affects the rich
It hurts fixed-income households most.
Key takeaways
- The rial has collapsed.
- Prices are quoted in tomans.
- Inflation is high.
- People buy hard assets.
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