Iran's currency will NOT stabilize until the day comes that Iran restores it's tourism industry and that will not happen until Iran starts to remove religious laws like Hejab by force, ban on alcoholic beverages, ban on nigh clubs, restriction on music concerts....
Tourism is hands down one of the most vital Industries most countries have and is the main source of foreign currency for most countries
Iran's tourism industry has a monetary deficit and that's cold hard cash leaving the country every year and as long as that persists Iran's currency will NEVER truly stabilize
If you wanna compare Iran's Oil economy to a Tourism economy best option is to compare Iran to Turkey
This is the trend of the Turkish currency over the last decade
View attachment 452411
and Trend of their GDP
View attachment 452434
VS Iran's oil economy that has gone nowhere but down because it's an Oil based economy that's government controlled and when oil prices double in the early 2000's the Iranian government prevented the currency value from going up with it and they prevented that from happening because they were using government banks to hand out high interest rates
But when Oil fell and banking sanctions hit Iran they had no choice but to devalue the currency because they didn't have the dollars to continue to pay all the cash owed to Iranians who had money inside banks and as a result a lot of people lost a lot of money and they could do that because Oil was the main source of foreign currency for Iran and they had more control over the value of the currency than the market and that is unhealthy!
Today Turkey using tourism has built an economy twice the size of Iran with about the same size population!
Their currency & GDP has had a continued upward trend over the past 2 decades and as long as they don't do something stupid like start a war that trend will likely continue
Where as Iran's GDP (nominal) today is the same as it was a decade ago and the countries GDP goes up and down based on Oil prices and Oil over the long term will continue to devalue due to demand because of alternative energy, electric cars, offshore drilling,....
So a devalued currency is not bad for Iran as long as you have a tourism industry to take advantage of it but if you wanna invest in Iranian currency your better off investing in Oil which isn't really advisable unless you know a war is coming
And until Iran address it's Tourism Industry by getting rid of religious nonsense the currency and economy will remain unstable! And today not a single economist in Iran has the guts to publicly address this issue which means the Iranian government is a long way off from addressing this issue!
