Iranians use dollars to buffer salary decline
Hyperinflation and the imbalance between the national currency, the Rial, and the dollar are destroying the daily lives of Iranian citizens. Inflation rates exceed 100%, while salaries have remained unchanged for years. This prompts citizens to seek ways to preserve the value of their money, such as converting it into dollars or purchasing gold. Iranians suffer from the devaluation of the Rial and a loss of confidence in the national currency, while market prices are set based on the dollar, worsening poverty and unemployment and creating a vicious cycle of economic collapse. The fundamental issue is the mismatch between salary levels calculated in Rials and the cost of living tied to the dollar, which fuels increased poverty and the decline of the middle class, leading to a phenomenon of household dollarization of money and a loss of trust in the national currency. The solution requires restoring trust between citizens and the state and aligning income and expenditure currencies to curb inflation and achieve economic stability.
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