Iran’s national currency plunged to a new record low on December 3 as mounting uncertainty over the country’s foreign-exchange reserves and policy direction fuelled renewed market turbulence.

The US dollar surged more than IRR 1.2mn on the open market, trading as high as IRR 1,206,000, while the UAE dirham crossed the IRR 330,000 mark for the first time. The euro and the British pound also gained sharply, climbing by nearly 2% in one day.

Currency dealers in Tehran's Ferdowsi Street told Intellinews that demand for hard currency has risen steeply in recent sessions, driven by a mix of speculative buying, concerns over shrinking reserves and ongoing political uncertainty.

“Liquidity has flooded into the market as expectations of further devaluation rise,” one trader told the financial daily Eghtesad News.

Economists point to a combination of structural and short-term factors behind the slide. Chronic fiscal deficits, persistently high inflation and multiple exchange-rate regimes continue to erode confidence in the rial.

Meanwhile, delays in repatriating oil revenues, together with restricted access to frozen foreign assets, have further tightened supply of hard currency.

The government has so far avoided aggressive intervention, with the Central Bank of Iran (CBI) maintaining a cautious stance. Analysts say the limited capacity for market stabilisation reflects deeper institutional and fiscal constraints.

The Tehran Gold and Jewellery Union quoted the international gold price at $4,199 per ounce for December 3 trading, down $11 from the previous day. However, the rise in major currencies on the informal market pushed domestic prices higher.

Eighteen-carat gold rose to IRR122,386,000 ($102) per gram, an increase of approximately IRR1,243,600 from the previous day. Twenty-four-carat gold reached IRR163,760,000 ($136) per gram, up about IRR1,658,630.

The gold coin market showed mixed results. A full Bahar Azadi coin sold for IRR1,274,000,000 ($1,059), rising IRR16,330,540, while the old-design full coin fell IRR9,906,050 to IRR1,214,000,000 ($1,009).

Half coins traded at IRR655,000,000 ($545), down IRR3,370,910 from the previous day. Quarter coins fell IRR4,286,700 to IRR375,000,000 ($312). One-gram coins dropped IRR1,411,270 to IRR182,000,000 ($151).

At Iran's official Exchange and Gold Centre, the dollar traded at IRR736,780 on December 2, the euro at IRR854,210 and the UAE dirham at IRR200,620.

The gap between official and unofficial dollar rates has widened to more than IRR466,000, with the informal market rate at IRR1,203,000 compared with the official rate below IRR740,000.