As the US dollar hits historic highs in Tehran’s markets, economists are sounding the alarm over the rapid “dollarization” of Iran’s economy.
With the dollar rate surpassing 144,000 Tomans, the national currency, the Rial, continues its steep decline, eroding public purchasing power.
Analysts suggest Iran is moving towards a state where the dollar effectively replaces the Rial for savings and transactions.
In this scenario, businesses and citizens increasingly use foreign currency to price goods and store wealth, signaling a total loss of confidence in the national money.
This economic phenomenon, previously witnessed in crisis-hit nations like Venezuela, threatens to strip the country of its monetary independence.
If unchecked, dollarization could render the central bank’s policies ineffective, fueling hyperinflation and devastating the livelihoods of ordinary Iranians.
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