The Iranian rial has fallen to an all-time low amid ongoing mass protests against the country's leadership. Two local traders estimated that the dollar is selling for an average of 384,000 rials on the black market, where the main currency transactions take place, Bloomberg reported.
Another reason to buy dollars was the European Union and British sanctions for supplying arms to Russia, as well as the suppression of unrest, in which several executions were carried out.
The rial has lost 18 percent of its value since mid-September. One local trader pointed out that demand for foreign currency continues to rise as what is happening puts pressure on business and the prospect of sanctions being lifted looks remote.
The Iranian currency has been falling since 2018, when the U.S. withdrew from the nuclear deal, believing Tehran was not complying with its terms. Since then, the authorities have been trying to control the currency markets, but to no avail. In addition, the popularity of the dollar and other foreign currencies is affected by high inflation and declining personal income.