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This paper explores the causes, workings, and impact of Iran’s ongoing currency crisis, during which the Iranian rial has lost more than 96% of its value against the US dollar since 2018. While international sanctions have played a major role, we argue that they are not the only reason behind the crisis. Instead, the collapse of the rial is rooted in a mix of persistent structural problems, including Iran’s heavy reliance on oil revenues, a flawed multi-tier exchange rate system, persistent budget deficits funded through printing more money, and the influence of Bonyads that have limited private sector growth for decades. The paper also examines the social consequences of the crisis and evaluates the country’s potential for economic reform.