Why Iran’s Economic Crisis is Still Getting Worse (Level 1)

Last month, large protests started in Iran. The main reason was money. Iran’s currency is called the rial. Recently, the rial lost a lot of value compared to the US dollar. This made buying goods from other countries very expensive. Shopkeepers in the markets became angry because they could not afford to run their businesses. The government tried to fix the problem, but they made a mistake. The Central Bank of Iran wanted to get more foreign money, like dollars, into the country. They rely on big companies to sell products abroad and bring dollars back. The bank lowered the value of the rial on purpose. They hoped this would encourage these big companies to exchange their dollars for rials. However, the plan did not work. The companies did not trust the economy, so they kept their dollars. This caused the rial to drop even further. Now, ordinary people are scared. Many are moving their money out of Iran. The economic situation is getting worse, and the government is facing a very difficult challenge.