Mass protests have erupted across Iran following a sharp collapse of the national currency, which dropped to 1.38 million rials per dollar, and the subsequent resignation of Central Bank head Mohammad Reza Farzin. At the same time, the country is experiencing severe inflation: in December, the rate reached 42.2%, with prices for food and medical goods rising by 72% and 50% respectively over the year. These events have triggered widespread demonstrations in major cities including Tehran, Isfahan, Shiraz, and Mashhad, making the current protests the largest since 2022.
Causes of the Protests in Iran
The main triggers were the dramatic devaluation of the rial to a record low and the rapid increase in basic goods prices, felt by traders and consumers nationwide. An additional factor was the resignation of Central Bank head Mohammad Reza Farzin, which heightened uncertainty in financial policy and markets. Reports also highlight the impact of external factors — international sanctions and regional instability — and discuss a possible tax increase, further intensifying economic pressure.
Scale of the Economic Crisis
Inflation reached 42.2% in December, affecting the real purchasing power of the population and business expenses. Data shows annual price growth of 72% for food and 50% for medical goods, which is especially hard on the most vulnerable groups. Meanwhile, the rial’s exchange rate plummeted to 1.38 million per dollar — a sharp decline compared to 32,000 rials per dollar in 2015, underscoring a long-term trend of currency weakening.
Comparison with Previous Protests
The scale of the current protests is compared to the 2022 events, when mass demonstrations swept the country following the death of Mahsa Jina Amini. At that time, protests spread across many cities; now, major demonstrations are also recorded in the capital and regional centers, including Tehran, Isfahan, Shiraz, and Mashhad. The similarity in scale highlights how economic and social factors can again mobilize large groups of citizens onto the streets.
Factors Worsening the Crisis
Economic difficulties in Iran are exacerbated by international sanctions and regional tensions, which complicate foreign trade and investment. Reports also note a possible increase in tax burdens and overall policy uncertainty, adding pressure on businesses and consumers. As a result, the combination of internal currency devaluation and external restrictions creates a complex economic situation.
Why This Matters
If you mine or invest in cryptocurrencies, it’s important to understand that sharp economic shocks in one country can influence global market sentiment and demand for digital assets, although direct impacts on Russian miners are usually limited. Meanwhile, events in Iran demonstrate how quickly purchasing power can decline and how this affects local expenses and prices for electricity and goods.
Additionally, amid devaluation, some of the population turns to digital assets as a way to preserve savings, as discussed in the article about the role of Bitcoin for savings in Iran. For miners, it’s important to monitor such trends, as they can change demand for buying and holding cryptocurrencies in specific regions.
What to Do?
If you operate between one and a thousand devices, start with basic security and financial flexibility measures: check wallet backups, ensure the safe storage of private keys, and keep part of your funds in liquid currency for transactions. This will help maintain operational resilience amid market volatility or supply and payment disruptions.
It’s also advisable to follow news and local changes in regulations and tariffs, and if necessary, redistribute load between sites or temporarily reduce energy consumption to manage costs. For understanding local risks, related topics on illegal mining and its consequences can be found in the article about illegal ASIC miners in Iran.