US Dollar Surges to 2.1 Million Rials in Free Market

The US dollar broke above 2.1 million Iranian rials on Wednesday's free market in Tehran, establishing a new all-time high. The Iranian rial lost approximately 60% of its value against the dollar since March, when it traded near 1.35 million rials. This decline accelerated after the US reimposed a naval blockade on Iranian ports in July, following the collapse of a short-lived ceasefire. Other currencies also saw significant devaluation; the euro reached 2.55 million rials, the UK pound hit 2.976 million rials, and the UAE dirham rose to 600,000 rials for the first time. Inflation metrics remained high as gold prices climbed, with one gram of 18-carat gold exceeding 225.7 million rials and the Imami gold coin trading at 2.26 billion rials. Iran maintains a dual exchange rate system where the official state rate is significantly lower than the free market rate. The gap between these two rates has widened sharply since the conflict began in February, with the free market rate now more than double the official figure.