"Prices of Death" Iranian MZs rush out as currency value collapses to 1/44

Anti-government protests continue for a fourth day

In Iran, anti-government protests over rising prices have continued for a fourth day. Iran's exchange rate recently soared to 1,420,000 rials per 1 dollar. Compared with about 32,000 rials per dollar in 2015, the currency's value has collapsed to 1/44 in roughly 10 years.

According to Reuters and others on the 31st of last month (local time), protests that began on the 28th in the capital Tehran have spread to major cities nationwide such as Isfahan, Shiraz, and Mashhad. It is notable that large numbers of the young MZ generation, including university students, have joined. On the fourth day of protests, students at about 10 universities nationwide, including in the capital Tehran, joined the protests and even attempted to enter local government offices.

CNN reported it as "the largest protest since the Mahsa Amini incident in September 2022, when she was arrested for reportedly wearing her hijab improperly and later died under suspicious circumstances."

Angry Iranian citizens poured into the streets because Iran's currency value collapsed due to last year's '12-day war' with Israel and U.S. sanctions.

Protesters told the Financial Times, "Milk is too expensive to buy. The price of cheese jumped from 6,000,000 to 8,000,000 rials in a few weeks, so I gave up buying it."

On top of this, the worst drought in about 40 years and power shortages have compounded the situation, driving public sentiment to the worst. Recently, unable to meet power demand, the government increased the use of low-quality alternative fuels, and as a result the skies over cities were covered in smog.

Because the protesters are raising economic issues rather than seeking to overthrow the regime, Iranian authorities have responded relatively conciliatorily compared with the 2022 hijab protests. According to Iranian state media, one officer belonging to the paramilitary forces died during the protests. During the hijab protests, more than 300 people died due to harsh police suppression and the Iranian government even carried out executions of protest ringleaders.

Ayatollah Khamenei, Iran's Supreme Leader, has remained silent and has not issued an official statement. Instead, Iran has dismissed the central bank governor and appointed a new governor, blaming him for the rial's collapse.

Jang Ji-min, guest reporter at Hankyung.com newsinfo@hankyung.com