ERBIL, Kurdistan Region - Soaring currency inflation and the rapid depreciation of the Iranian toman against the US dollar have sharply reduced commercial activity in western Iran's Kurdish regions (Rojhelat) as US sanctions take a toll on the Iranian economy.
The historic central bazaar of Jwanro (Javanrud) in Kermanshah province, a once bustling hub for regional commerce swarming with customers and tourists alike, now sees but a fraction of the foot traffic it once had.
Local shopkeepers say a combination of regional war concerns, sharp currency devaluation, and plummeting consumer purchasing power has severely disrupted retail trade.
"Because of the rising US dollar, prices skyrocketed and customers stopped coming,” Soran Ramazani, a shopkeeper, told Rudaw.
“We are selling almost nothing. It has reached a point where we’re considering closing the shop," he said.
Omran Weisi, another shopkeeper, also bemoaned the significant drop in sales.
“We used to sell around 200 to 300 million tomans [$145 to $220] worth of goods a week, but now that's down to just 50 to 70 million [$35 to $50],” he stated.
On Wednesday, the US dollar traded for just over 221,000 tomans on Iran's open market. The rapid currency slide reflects a year-over-year inflation rate approaching 90 percent compared to September 2025 figures.
The accelerated drop in the toman's value can be attributed to a fresh round of primary and secondary economic sanctions enacted by the US Department of the Treasury in late August, termed Operation Economic Outcast.
"Our objective is to sever every economic lifeline that sustains this tyrannical regime until Tehran stands alone," US Treasury Secretary Scott Bessent stated in late August regarding the push.
Furthermore, the US-imposed naval blockade on Iranian southern ports has remained in place since mid-July.
As of Monday, 83 commercial vessels leaving or entering the ports have been redirected, while three others were disabled and two others were boarded, according to the US Central Command.
