1 dollar — 1.4 million rials: The world's least valuable currency is being thrown into the trash

The Iranian economy has reached the brink of a historic collapse due to years of international sanctions, strict financial restrictions, and out-of-control hyperinflation. The country's national currency, the rial, has almost completely lost its purchasing power. On the unofficial black market, the exchange rate of one US dollar has crossed the psychological threshold of 1.4 million rials, making this currency officially the least valuable in the world.

Videos circulating on social media show citizens scattering bundles of cash on the ground like trash or throwing them into garbage bins as a symbolic gesture of protest. This scene has become a clear manifestation of the deep despair and anger growing among millions of residents.

A 10 million note and a real value of 7 dollars

To cover the deficit in circulation and ease the cash shortage, the Central Bank of Iran was forced to issue the largest banknote in the country's history — a new 10 million rial note. However, the real market value of this large paper bill, which seems astronomical in terms of numbers, is estimated at only around 7 US dollars.

The government attempted to reduce psychological pressure by removing four zeros from the currency and gradually transitioning to a new "toman" system. However, the denomination, carried out without real economic reforms and foreign currency inflows, could not curb the rate of devaluation.

"When paper money becomes cheaper than the cost of the paper it is printed on, the banking system becomes paralyzed. People are forced to carry money in bags for daily shopping."

Pressure of sanctions, resource scarcity, and mass protests

According to the International Monetary Fund (IMF), the Iranian economy is experiencing a much more severe period of decline compared to all other countries in the Middle East region. Strict restrictions imposed by the US on Iran's oil exports and international bank transactions have cut off the main sources of income for the state treasury.

Interruptions in electricity and drinking water supplies, compounded by currency devaluation, have exhausted the patience of the population. Currently, large-scale economic protests against unjustified price hikes and social deprivation are continuing across the country's major cities.

Do you think the Iranian government can save the national currency from collapse through internal capabilities and denomination if external sanctions are not lifted? Share your opinion in the comments.