Rial vs US Dollar: A Currency in Crisis – The Comprehensive 2025 Analysis
1.3. Post-Revolution Economic Turmoil
The 1979 revolution brought a seismic shift in Iran’s economic landscape. The immediate nationalization of industries and the severance of ties with Western financial institutions sent shockwaves through the economy. This was followed closely by the devastating Iran-Iraq War (1980–1988), which placed immense strain on national resources. To fund the war effort, the government resorted to printing money, leading to the first major waves of inflation and devaluation. The Rial, once a symbol of national pride, began a long descent. The economic policies of the new theocratic government, which prioritized self-reliance and state control over market efficiency, further isolated Iran from the global financial system, setting the stage for the chronic currency issues that would follow.
