The dollar exchange rate on Iran's black market reached a record high of 602,000 rials today. Since the beginning of the year, the dollar has strengthened by nearly 20% in Iran.
It is interesting to note that the latest strengthening comes a few days after parliamentary elections in which the extremist movement in Iran won.
What causes the increase in demand for the dollar these days? One of the reasons is the approach of the new Persian New Year (towards the end of the month) when there is also an increase in travel activity.
Other reasons for the strengthening of the dollar are the Iranian public's fear of the US elections and what appears to be a possible victory for Donald Trump, as well as the ongoing regional tensions due to the war in the Gaza Strip.
In short, the decline in the value of the riyal is expected to accelerate inflation and internal unrest against the Ayatollahs' rule.