Iranian Rial Discussion Board

[RJ Trotts]

Value

In 1932, the exchange rate with the British pound was equal to that of the qiran, 1 pound = 59.75 qiran. This changed to 80.25 in 1936, 64.350 in 1939, 68.8 in 1940, 141 in 1941 and 129 in 1942. In 1945, Iran swiched to the U.S. dollar as the peg for its currency, with 1 dollar = 32.25 rial. The rate was changed to 1 dollar = 75.75 rial in 1957, a rate which was maintained until Iran did not follow the dollar's devaluation in 1973, leading to a new peg of 1 dollar = 68.725 rial. The peg to the U.S. dollar was dropped in 1975.
In 1979, 1 rial equaled to $0.0141. The value of Iran's currency has declined precipitously after the Islamic revolution.[1]. Whereas on 15 March 1978, 71.46 rials equaled one U.S. dollar, in July 1999, 9430 rials amounted to one dollar. However, the value of rial has become more stable since 1999 as the economy of Iran has been growing rapidly and independently. (See Iran Currency Exchange Rate History: 1975 - 2006).
Until 2002, Iran’s exchange rate system was based on a multi-layered system, where state and para-state enterprises benefited from the preferred rate (1750 rial for $1) while the private sector had to pay the market rate (8000 rial for $1), hence creating an unhealthy competition environment. However, in March 2002, the multi-tiered system was replaced by a unified, market-driven exchange rate.
Exchange rates: rials per US dollar - 9,246.94 (2006), 8,964 (2005), 8,885 (2004), 8,193.89 (2003), 6,906.96 (2002), 1,753.56 (2001), 1,764.43 (2000)