Iran faced renewed unrest this week as its national currency fell to a record low, prompting street protests and the resignation of the central bank governor amid mounting economic pressure.
Demonstrations erupted in Tehran and several other cities after the rial plunged past 1.42 million to the U.S. dollar, marking its weakest level on record.
State television reported that Central Bank Governor Mohammad Reza Farzin stepped down on Monday as traders and shopkeepers closed businesses and gathered in protest.
Rallies were reported in central Tehran, including Saadi Street and areas near the Grand Bazaar, where merchants have historically played a significant political role.
Witnesses said shopkeepers shut their stores and urged others to follow, while some markets remained partially open.
The official IRNA news agency confirmed the demonstrations, and similar gatherings were reported in Isfahan, Shiraz, and Mashhad.
In parts of Tehran, police deployed tear gas to disperse crowds as anti riot forces were visibly present.
The protests marked the largest public demonstrations since 2022, when nationwide unrest followed the death of Mahsa Jina Amini in police custody.
On Sunday, protests were initially limited to mobile phone markets, where demonstrators chanted slogans as the currency continued to slide.
By Monday, participation appeared to broaden, with more neighborhoods reporting closures and street gatherings.
The rial’s rapid depreciation has intensified inflation, driving up the cost of food, health care, and daily necessities.
Official statistics show inflation at 42.2 percent in December compared with a year earlier, with food prices rising 72 percent.
Farzin had taken office in 2022, when the rial traded near 430,000 to the dollar, highlighting the scale of the decline.
Concerns have also grown over reports of planned tax increases in the new Iranian year beginning March 21.
President Masoud Pezeshkian, defending his proposed budget in parliament, acknowledged the strain on state finances.
“They tell me you’re taxing too much, and they’re saying you must increase wages,” he said.
The economic turmoil has been compounded by sanctions, frozen assets, and uncertainty following a recent 12 day war involving Iran and Israel.