Iran Faces Economic Challenges as Its Currency Plunges

The sharp decline in the value of the Iranian currency is causing upheaval in the Iranian economy and challenging the government and the banking sector. The local currency’s plunge to a rate of 6,000 tomans to the dollar, despite the high level of oil and gas revenues, reflects a lack of trust between the citizens and the banking system. A consideration of Iran’s economic policy sheds light on the limitations of the “dual economy” practiced by the Islamic Republic since its inception.