Fog (Iranian currency)

Main article: Economy of Iran

• Central Bank of Iran

2024: Kish Island Digital Real Launch

In June 2024, the Central Bank of Iran announced that it plans to introduce digital currency for customers of the banking network in the country.

According to a statement from the CBI, a pilot version of the digital rial will launch in July 2024 on Kish Island in southern Iran after several years of work and research on the program. Iranian Bank Mellat and Tejarat Bank will also take part in the project.

2023: Down 29% after unrest breaks out to 44,700 fogs per dollar

In January 2023, the Iranian rial (fog) fell to a record low against the US currency amid growing isolation of the country and possible sanctions from the European Union (EU). This was reported by Reuters.

According to the Bonbast.com website, on January 21, in the unofficial market of the Islamic Republic, one dollar could be bought for 44,700 rials, and a day earlier - for 43,050.

In general, the Iranian currency lost 29% of its value after the start of riots last fall. The head of the Central Bank of Iran, Muhammad Reza Farzin, said that the fall of the rial is associated with psychological operations that enemies organize to destabilize the republic.

2022

Record currency fall to 363,500 riyals per dollar

The rate of the Iranian rial in the country's exchangers fell to the lowest level on record. 363,500 rials are asked for US $1 on November 5, 2022. Protests against the government continue in the country.

Three Exchange Rate System

Despite the shortage of foreign currency, its turnover has been preserved in the country, dollars and euros can be bought in banks and exchangers at a market rate that in March 2022 (~ 250,000) is almost 6 times higher than the official rate of the Central Bank of Iran (42,000), which in turn is used mainly by importers for the purchase of vital goods.

Exporters are required to sell foreign exchange earnings within Iran at the third rate, which is called NIMA and slightly below the open market rate.

2020: Iran changes name of national currency - rial to fog

In early May 2020, the Central Bank of Iran announced a change in the name and value of the national currency. Former rials will soon be called fogs, and four zeros will disappear from all bills. What previously cost 10,000 riyals will cost one toman.

The way people speak and how it will be recorded will be the same from now on , "said President Hassan Rouhani.

The devaluation of the rial was the result of several key events: the 1979 Islamic Revolution, after which many entrepreneurs left the country for fear of persecution, the Iran-Iraq war in 1989, which destroyed the economy, as well as the tenure of President Mahmoud Ahmadinejad with tough international sanctions. As a result, the rial lost nearly 400% of its value in global currency markets.

Iran renamed the national currency

The economic crisis has forced Iran's leader to reconsider his stubborn reluctance to negotiate over the nuclear program. In 2015, under intense pressure, Iran agreed to a nuclear pact with the United States, Europe, China and Russia, now terminated. The US withdrawal from the nuclear deal was the latest stone to bring down the Iranian economy.

Iran has faced a range of financial disasters since 1979, including international sanctions that severely limit its ability to sell oil - the country's main source of revenue. The government also imposed strict rules on access to foreign currency, which led to the prosperity of the black market and further undermined the value of the national currency.

The fall of the rial continues, and by May 7, 2020, $1 costs 42,050 rials. Thus, the Iranian currency became almost 600% weaker than it was before the revolution. It is unlikely that without serious economic measures, a name change will stop the devaluation of the national currency.^[1]

2018: Introduction to the official dollar exchange rate

The official rate of the Iranian real to the dollar was set in 2018 in an attempt to equate it with the market. Initially, it was made illegal to exchange at a higher rate. However, it turned out to be impossible to keep it.

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