Trillions in Value Lost: Iranian Rial and Venezuelan Bolivar See Near-Total Currency Collapse

Tehran/Caracas – The Iranian Rial and Venezuelan Bolivar have experienced catastrophic devaluations over recent decades, illustrating profound losses in purchasing power for those holding the currencies. A recent social media post by "Shervin" highlighted this stark reality, noting that a $1,000,000 USD exchange into Iranian Rials in 1975, held until today, would yield approximately $1,600 USD upon reconversion. Similarly, $3.6 billion USD converted to Venezuelan currency in 1985 would now be worth merely $1.

The Iranian Rial's decline intensified significantly following the 1979 Islamic Revolution, marked by substantial capital flight and persistent high inflation. International sanctions, particularly those targeting Iran's nuclear program and oil exports, have further exacerbated the currency's woes. According to financial data, the Rial's official peg to the US dollar was dropped in 1975, and by late 2024, the free market exchange rate reached 820,500 Rials to one US dollar, a dramatic fall from 71.46 Rials per dollar in March 1978.

Venezuela's Bolivar has undergone multiple redenominations, including the "Bolívar Fuerte" in 2008, "Bolívar Soberano" in 2018, and "Bolívar Digital" in 2021, each time shedding zeros due to rampant hyperinflation. Economic mismanagement, heavy reliance on oil exports, and stringent currency controls have been primary drivers of this collapse. The currency, once considered stable in the region, began its precipitous fall around "Black Friday" in February 1983, when it was first significantly devalued against the US dollar.

The severe depreciation in both nations underscores the devastating impact of prolonged economic instability and political factors on national currencies and citizen wealth. As "Shervin" concluded in the tweet, "> Despots destroy the wealth and prosperity of all people except themselves." These currency crises have led to widespread erosion of savings, increased poverty, and a significant decline in living standards, pushing many to rely on foreign currencies for transactions. Both countries have seen their central banks struggle to manage exchange rates amidst internal and external pressures.