Real effective exchange rate index (2010 = 100)_

Event_Log

1. 012002Official/market exchange-rate unificationAssociation

   Iran unifies its official and market exchange rates at the start of the 1381 fiscal year, a rare successful unification episode.

   Why this link: The REER index collapsed 62.1% in a single year, from 296.1 (2001) to 112.3 (2002), the sharpest move in the whole series, mechanically tracking the ~4x devaluation of the official rate used in the index's construction that year -- again close to a definitional link.

   Caveat: None substantial.

   Lag: immediate (same year)Source: IMF Iran country page (Article IV history)
2. 022022Preferential "4,200 toman" import-currency rate eliminatedAssociation

   Parliament approves ending the subsidized foreign-currency allocation for essential imports (flour, medicine), removing the ~$10-14bn/yr subsidy and roughly doubling bread prices for many bakeries.

   Why this link: The REER index rose sharply from 230.2 (2021) to 861.8 (2025) as domestic CPI inflation (40%+/year) persistently outpaced the nominal depreciation of the largely fixed/administratively-managed official exchange rate used in the index's calculation -- a real appreciation that erodes external competitiveness even as the free-market rial simultaneously collapses (see the parallel-rate chart).

   Caveat: REER construction is sensitive to which nominal rate and trade-partner basket the source uses; given Iran's multi-tier FX system post-2018, this index likely reflects the official/administered rate rather than the economically relevant parallel rate, which could make the 'competitiveness' reading misleading if taken at face value. The 2022 event is cited as the start of this window's clearest dated policy marker, not as the sole cause of a multi-year trend.

   Lag: gradual over 3+ yearsSource: Bourse & Bazaar Foundation