When protests broke out in Iran after the country’s currency hit an all-time low against the US dollar, scores of people took to the streets.Rallies were held in other major cities, including Isfahan in central Iran, Shiraz in the south and Mashhad in the northeast. In some parts of Tehran, police used tear gas to disperse protesters.As the protests gained momentum, the head of Iran’s central bank, Mohammad Reza Farzin, resigned.
Monday’s protests were the largest since 2022, when the death of 22-year-old Mahsa Jina Amini in police custody sparked nationwide demonstrations. She was arrested by the country’s moral police for allegedly not wearing her hijab properly, the Associated Press reported.According to the report, traders closed their stores on Monday and urged others to do the same. The semi-official ILNA news agency said many companies had suspended trading, although some kept their shops open.“Listen to legitimate demands”Meanwhile, President Masoud Pezeshkian called on his government to listen to the “legitimate demands” of protesters.“I asked the interior minister to listen to the legitimate demands of the protesters and start a dialogue with their representatives so that the government can do everything in its power to solve the problems and act responsibly,” Pezeshkian said, according to the official IRNA news agency.What is fueling the unrest?This came after the Iranian rial fell to 1.42 million per dollar. On Monday it traded at 1.38 million per dollar.The rapid devaluation is exacerbating inflationary pressures, driving up prices for food and other essentials and further straining household budgets – a trend that could worsen with a change in gasoline prices introduced in recent days.Reports in official Iranian media that the government plans to increase taxes for the Iranian New Year starting March 21 have added to concerns.At the time of the 2015 nuclear deal, which lifted international sanctions in return for strict controls on the country’s nuclear program, Iran’s currency traded at 32,000 riyals to the dollar. That agreement collapsed after US President Donald Trump unilaterally withdrew the United States in 2018.Interestingly, the market’s traders played a crucial role in the 1979 Islamic Revolution, which overthrew the monarchy and brought Islamists to power.
