Iran Officially Adopts a Single Exchange Rate System

With the implementation of a new policy by the Central Bank of Iran, the country has officially moved away from its multi exchange rate system. From now on, the negotiated US dollar rate in the second trading hall of the foreign exchange market will serve as the reference rate for all currency transactions. This policy shift effectively marks the elimination of preferential exchange rates and signals a move away from administrative price controls. The government has presented the reform as a step toward greater transparency, reduced rent seeking, and a more market driven pricing mechanism, with all goods and services to be priced based on the negotiated exchange rate.

Authorities have also announced that the price difference affecting essential goods will be compensated through an electronic voucher system, ensuring continued support for households. The stated objective of this measure is to mitigate direct inflationary pressure on consumers while advancing structural reform in the currency market. With the establishment of a single official reference rate, currency supply and demand will now be matched within a unified framework. Analysts believe this decision could pave the way for the gradual removal of price setting mechanisms in other sectors of the economy as well.