A simple $1 now costs 2 million rials in Iran, as the local currency has fallen to an all-time low. The drop in value comes as the US tightened sanctions against the country, strangling its national economy. Tensions first rose over the Islamic Republic’s nuclear programme, which led to the first sanctions under the Obama administration. The decades-long sanctions have diminished its economy, leading to the rial becoming fragile.
The rials crash has led to inflation, with daily essentials skyrocketing across the Middle Eastern nation. The price rise is adding to the misery of the local population, and the costs of food products have spiked. Luxury items are off the cards, and people are fighting for basic necessities. The situation in Iran is grim, with no sign of a quick economic recovery in place. The general public is bearing the pain and has no option but to struggle for a living.
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What Can 2 Million Rials Buy in Iran?
Before the US-Iran war, 2 million rials could buy 4 kgs of tomatoes, half a kg of chicken, and less than a liter of cooking oil. After the war broke out in February, people could buy less than half of what they could for the same amount. Tomatoes have increased by 71%, chicken by 74%, and cooking oil by 177%. This is making life extremely difficult for Iranians as inflation is eating up their purchasing power.
The change in ‘what people eat’ is concerning, as it can lead to malnutrition in children. A couple with a child revealed to Al Jazeera that the cost of raising a kid has become cumbersome. “My husband and I both work, and we have a one-year-old child. The daily cost of childcare at daycare centres has now reached around 5 million riyals ($2.5), which is difficult for us to afford.” The rial is now under severe pressure, and if Iran does not turn around its economy, the people will suffer the most.