Record Fall in Iran’s Rial and New Test Ban Tighten Economic Squeeze on Iranians
Iran’s currency has fallen to about 2.06 million rials per US dollar on the unofficial market, an all‑time low that reflects war, sanctions, inflation and hard‑currency shortages. At the same time, Duolingo’s English test will no longer be available to users with Iranian IDs, limiting a key pathway for students seeking to study abroad.
Iran’s currency has dropped to a new record low, adding to economic pressure on households while new sanctions‑related limits hit students’ education plans.
On 29 August, Iran’s rial was trading at around 2.06 million to the US dollar on the unofficial market, equivalent to roughly 206,000 tomans. This is the weakest level recorded so far, after a prolonged slide driven by war, sanctions, high inflation and shortages of foreign currency.
The latest fall comes against a backdrop of increased oil flows in the Strait of Hormuz and a televised interview by President Masoud Pezeshkian about Iran’s economic situation, underscoring that higher export volumes have not stabilized the currency.
For families paid in rials, each drop in the exchange rate makes imported goods, including medicines, foodstuffs and spare parts, more expensive. Businesses that rely on foreign components or software face rising costs and uncertainty when setting prices or signing contracts.
At the same time, a new restriction is closing off one of the most affordable tools Iranians used to access foreign education. The Duolingo English Test will no longer be available in Iran or to users presenting Iranian identity documents, even if they take the test abroad. Duolingo says this is a sanctions‑related change following the US Treasury’s suspension of Iran General License G, which had allowed certain educational services, including standardized testing.
The test had been one of the cheapest and most accessible options for Iranian students and applicants seeking to demonstrate English proficiency for study abroad. Its removal will make it harder and more expensive for many to pursue overseas education.
Iranian officials, meanwhile, are framing the economic and energy situation as the result of external manipulation. Foreign Minister Abbas Araghchi said Iranian intelligence points to major efforts to influence energy markets, accusing elements of the US government of using media to move prices for personal gain and to keep the US president tied to a losing war. He also alleged that actors aligned with Israel promote escalation with overly optimistic assessments, arguing that US consumers ultimately bear the cost.
Together, the record‑low exchange rate and tighter education‑related sanctions are narrowing options for Iranian households, students and policymakers. Signals to watch now include whether the rial stabilizes or weakens further, how other education providers adjust their services for Iranian applicants, and whether Tehran responds with new currency controls or public measures to address the rising cost of living.
Sources
- OSINT