Iran rial hits record low near 1.95M per dollar

The rial was quoted near 1.95 million per U.S. dollar on July 20 in Iran’s open market, the weakest level on record. The dollar had reached 1.918 million rials on July 17, surpassing the previous record of 1.9 million set on May 4.

Observers cite renewed U.S. pressure and the unraveling of a June ceasefire as immediate triggers. They also point to damage to energy and transport infrastructure, lower production and exports, disruptions around the Strait of Hormuz, international sanctions, war-related damage and long-term economic mismanagement.

The International Monetary Fund projects Iran’s economy will contract 6.1% in 2026 and forecasts average inflation of 68.9% for next year. At the current exchange rate, the official monthly minimum wage of 166,255,500 rials converts to roughly $87.

The currency has fallen sharply this year. It traded near 1.47 million rials per dollar at the start of 2026 and has lost roughly a quarter of its remaining value over about seven months.

A weaker rial raises the local price of imported goods, raw materials and medicine. Companies that depend on imported components face higher input costs, and households confront reduced purchasing power amid rising inflation.

Bitcoin was trading near $64,250 on July 20 as financial markets monitored developments. Some transactions for Iranian oil have shifted toward yuan-based payments in recent months.

The framework agreed in June called for International Atomic Energy Agency inspectors to return and deferred technical details of Iran’s nuclear programme to follow-up talks.