Shafaq News- Mehran

Iranian border guards seized more than 50 billion rials (about $28k) in cash at the Mehran crossing on Sunday, concealed in luggage carried by foreign travelers attempting to leave the country, according to Fars News Agency.

The seizure comes amid reports of a sharp shortage of cash in automated teller machines (ATM), particularly in the western border province of Kermanshah, where residents have reported difficulty withdrawing paper currency in recent days.

The Iranian rial has weakened significantly against the US dollar in parallel market trading, with rates hovering around 1.5 million – 1.8 million rials per $1 in recent weeks. The pressure on the currency has been linked to persistent inflation, sanctions-related constraints on foreign currency flows, and increased demand for dollars, contributing to tighter liquidity conditions and reduced availability of cash in circulation.

Local reports have also warned that cash smuggling could be exacerbating shortages, raising concerns about its impact on daily transactions and market activity.