Iran's central bank leadership is grappling with spiralling exchange rates as the dollar surpasses IRR900,000 in the open market, Eghtesad24 reported on February 14.

Economic analysts warn the dollar could reach IRR 100,000 by the Persian New Year in March amid what they characterise as a currency crisis affecting all sectors of Iran's economy.

The rapid depreciation of the national currency has impacted everything from healthcare to household budgets and industrial production with calls for impeachment and removal of the current government and Central Bank of Iran (CBI) governor.

"The 14th government faces serious financial imbalances that directly affect inflation and currency prices," Sohrab Hashemi, an economic analyst based in Tehran, said on February 14.

"This situation stems from factors including high inflation, government financial inconsistencies, and ineffective economic policies," he added, noting that the Pezeshkian administration is attempting to correct previous economic mistakes, including the practices of allowing huge sums of money at different exchange rates. 

The CBI's monetary and foreign exchange policies have drawn criticism from parliament members who argue the measures lack transparency and fail to manage currency fluctuations effectively.

Hashemi noted that whilst external factors and social media speculation play a role in exchange rate volatility, the fundamental issue lies in economic management.

"Whilst changing the central bank governor might temporarily reduce dollar prices by a few thousand rials, the root of this instability needs to be addressed - something Farzin [CBI Governor] has repeatedly pointed out," he said.

The report highlighted how the exchange rate has historically been utilised as a budgetary tool rather than an instrument for balancing foreign trade or the national economy.