The Iranian rial traded at IRR1,261,500 to buy one US dollar and IRR1,260,500 to sell on the free market on December 8, according to exchange rate data before recouping some of its losses on December 9.

There appears to be no ceiling to what has become a common feature of the Iranian economy since 2018, when, under the first Donald Trump, pulled out of the nuclear deal with Tehran, causing the rial to begin its long slide against a basket of currencies. 

The British pound sterling traded at IRR1,680,000 to buy and IRR1,678,000 to sell, whilst the euro stood at IRR1,466,500 to buy and IRR1,464,500 to sell.

The Swiss franc was quoted at IRR1,562,000 to buy and IRR1,560,000 to sell, whilst the Canadian dollar traded at IRR912,000 to buy and IRR911,000 to sell on Iran's free market.

The Australian dollar stood at IRR835,000 to buy and IRR834,000 to sell, whilst the Swedish krona traded at IRR134,000 to buy and IRR133,000 to sell.

Other currencies included the Norwegian krone at IRR124,500 for both buying and selling, the Russian rouble at IRR16,500 to buy and IRR16,450 to sell, and the Thai baht at IRR39,500 to buy and IRR39,450 to sell.

The Singapore dollar traded at IRR972,000 to buy and IRR971,000 to sell, whilst the Hong Kong dollar stood at IRR162,000 to buy and IRR161,000 to sell.

Gold coins showed the full Azadi trading at IRR1.272bn to sell and IRR1.252bn to buy, whilst the Emami coin stood at IRR1.33bn to sell and IRR1.32bn to buy. The half Azadi traded at IRR710mn to sell and IRR700mn to buy, whilst the quarter Azadi stood at IRR407mn to sell and IRR397mn to buy.

The Iranian rial could reach IRR1.3mn per dollar in coming days as demand pressure and structural economic issues drive the currency's decline, market analysts warned, Etelaat reported on December 8.

Currency market analysts forecast the dollar will trade between IRR1.25mn and IRR1.275mn on December 9. If demand pressure continues, the currency could briefly breach the IRR1.28mn level, they said.

A temporary pullback to IRR1.245mn remains possible if buying momentum eases and market-making policies take effect, though any corrections will be short-lived with the upward trend maintained.

Economic analysts in Tehran speaking said the recent surge in dollar prices stems from structural problems including liquidity growth, double-digit inflation and trade restrictions from sanctions.

Controversial businessman weighs in

Iranian billionaire businessman Babak Zanjani claimed he could stabilise Iran's exchange rate within two months if the government delegates currency policymaking to him, dismissing sanctions as an excuse for the weak rial.

"It has been announced that due to war conditions, post-war conditions and sanctions, the increase in the dollar price is natural and one should not expect it to become cheaper," Zanjani wrote on Twitter, Hamshahri Online reported on December 8.

"Whatever rate is considered appropriate for these conditions should be determined, but it should be stable and reliable," he wrote.

Zanjani, known for his role in circumventing sanctions during previous rounds of international restrictions on Iran, said officials should set a fixed exchange rate regardless of the level.

"If you cannot manage to stabilise it, delegate its policymaking to us in a two-month working group so that we can demonstrate monetary stability in practice, so that the nation can see that for years they have been fooled by you under the pretext of sanctions," he wrote.

Zanjani gained notoriety for his involvement in oil trading schemes during the Mahmoud Ahmadinejad presidency and was later arrested on corruption charges. He has periodically offered economic advice through social media platforms.