Price Of Dollar In Iran In Free Market
Introduction
For many years, Iran's economy has been heavily impacted by sanctions imposed by the US government. As a result, the value of the Iranian currency, the rial, has plummeted, and many Iranians have turned to the free market to exchange their money. One currency that has become very popular in Iran's free market is the US dollar. In this article, we will discuss the price of the dollar in Iran's free market.
What is the Free Market?
The free market in Iran refers to a system of foreign exchange that is not regulated by the government. It is a place where people can buy and sell foreign currencies, such as the US dollar, at market prices. The free market is a popular place for Iranians to exchange their money because the exchange rate is often much better than the rate offered by official banks.
The Price of the Dollar in Iran's Free Market
The price of the dollar in Iran's free market fluctuates constantly. In recent years, it has reached historic highs due to the US government's economic sanctions on Iran. As of August 2021, the price of the dollar in Iran's free market is around 25,000 rials per dollar. This is significantly higher than the official exchange rate of around 42,000 rials per dollar offered by Iranian banks.
Why is the Dollar So Popular in Iran's Free Market?
There are several reasons why the US dollar is so popular in Iran's free market. Firstly, the US dollar is a stable and widely accepted currency around the world. It is also the currency used for many international transactions, such as buying and selling oil. Secondly, due to the US sanctions, many Iranians have lost faith in the Iranian rial and view the US dollar as a more stable and reliable currency.
Impact of the Dollar's Price on Iran's Economy
The high price of the dollar in Iran's free market has had a significant impact on the country's economy. The cost of imported goods has increased, and many Iranian businesses have struggled to operate due to a lack of access to foreign currency. Inflation has also skyrocketed, making it difficult for ordinary Iranians to afford basic necessities.
Efforts to Control the Price of the Dollar
The Iranian government has made several attempts to control the price of the dollar in the free market. In 2018, it launched a plan to unify the official and free market exchange rates, but this was largely unsuccessful. More recently, the government has attempted to crack down on illegal currency dealers and limit the amount of foreign currency that can be held by individuals. However, these measures have had limited success in controlling the price of the dollar.
Conclusion
The price of the US dollar in Iran's free market has become an important issue for many Iranians. While the government has attempted to control the price, it remains a volatile and unpredictable market. The high price of the dollar has had a significant impact on Iran's economy and the lives of ordinary Iranians. As the country continues to face economic sanctions, it is unclear what the future holds for the price of the dollar in Iran's free market.