Rial vs US Dollar: A Currency in Crisis – The Comprehensive 2025 Analysis
1.2. Pre-Revolution Economic Stability
Before the 1979 Islamic Revolution, Iran enjoyed a period of robust economic growth and stability. Under the Pahlavi dynasty, particularly during the oil boom of the 1970s, the Rial was strong and convertible. The US Dollar was used primarily for international trade and oil transactions, but within Iran, the Rial held its value. The exchange rate was managed effectively, and inflation was kept under control. The country was integrating into the global economy, and foreign investment was flowing in. The Rial’s stability during this era was a reflection of the government’s pro-Western economic policies and the influx of petrodollars.
