Iran International TV: Tehran adjusts its public tone as protests return

A screen-grab from a video that appears to show protestors in Iran's southern city of Marvdasht, January 1, 2026
Photo: Iran International TV

Tehran’s response to the protests this week has looked markedly different, whether out of calculation or necessity, with Iranian media reporting on the unrest, the government striking a conciliatory tone and the internet remaining largely accessible, Iran International TV notes.

The protests, triggered by rising prices, quickly moved beyond economic grievances. Slogans once again targeted the ruling system itself, with demonstrators openly calling for its downfall.

In both 2019 and 2022, when similar chants echoed across Iran, authorities moved swiftly to shut down the internet, cutting off communication with the outside world and crippling domestic news coverage. Protesters were rapidly branded as enemy foot soldiers, and state media framed the unrest almost exclusively as a foreign-backed security threat.

This time, the state broadcaster appears to have adopted a more cautious line, quoting hardline outlets on the causes of the protests while limiting its own commentary, perhaps to avoid provoking demonstrators—or to reclaim an audience long lost to social media and foreign-based Persian-language outlets.

‘Right to protest’

State television presenters have repeatedly asserted in recent days that “protesters have every right to protest rising prices.”

That framing mirrors President Massoud Pezeshkian’s recent assertion that “protesters do not need a permit to take to the streets under the Iranian Constitution.”

The statement was always legally correct, but no senior official or major outlet had previously expressed it so plainly.

At a December 31 press conference, government spokeswoman Fatemeh Mohajerani reiterated that the administration recognizes the public’s right to protest, adding that Pezeshkian has pledged to listen to citizens and resolve their problems.

“Protesting the dollar is protesting instability; protesting a life that cannot be planned”

As protests once again ripple across Iran, the country’s political establishment is moving quickly to revive an economic reform agenda that many Iranians say no longer speaks to the core of their anger.

While demonstrators chant against the entire system, the government of President Masoud Pezeshkian has focused its response on reshuffling economic managers and pressing ahead with long-delayed currency reforms, betting that technical fixes can still defuse a crisis that has increasingly become political.

The renewed unrest was triggered by a sharp bout of currency volatility that briefly pushed the U.S. dollar to around 1.45 million rials on the open market, intensifying already high inflation and accelerating the erosion of purchasing power.

“Protesting the dollar is protesting instability; protesting a life that cannot be planned,” wrote journalist Mustafa Danandeh in the daily Ettelaat. “People who do not know whether six months from now their rent will double, medicine will be available, or their job will survive.”

In response, Pezeshkian reshuffled the leadership of the Central Bank of Iran, reappointing Abdolnaser Hemmati and reviving a controversial push toward a single exchange rate—an idea long advocated by economists but repeatedly stalled by politics, sanctions and entrenched interests.

In his first public remarks after the appointment, Hemmati laid out familiar priorities: controlling inflation, managing the foreign exchange market and tightening oversight of banks.

President Masoud Pezeshkian
Pic.: AOL.com

It’s the economy — or is it?

The reform effort centers on dismantling Iran’s multi-rate currency regime, a system dating back to the Iran–Iraq war of the 1980s, when preferential exchange rates were introduced to subsidize essential imports. Over time, the widening gap between official and market rates turned the system into a major source of rent-seeking, corruption and uncertainty.

As the business news outlet Tejarat News noted, the policy “failed to provide sustainable support for domestic producers and created severe uncertainty for investment and production planning.”

On Thursday, the president announced the immediate elimination of the subsidized exchange rate of 285,000 rials per dollar for basic goods and animal feed imports, saying the subsidy would instead be transferred directly to consumers to eliminate “rent, bribery and corruption.”

In unusually blunt remarks, Pezeshkian acknowledged that public anger was directed at the state itself. Dissatisfaction, he said, was the government’s responsibility, adding that “there is no need to look for America to blame.”

The government would stop distributing a heavily subsidized exchange rate

Iranian President Masoud Pezeshkian said on Thursday that his government would stop distributing a heavily subsidized exchange rate, blaming the system for encouraging rent-seeking and failing to protect households despite billions of dollars in state support.

Speaking at a meeting with political and social activists in Chaharmahal and Bakhtiari province, Pezeshkian said the 28,500-toman dollar – one of several preferential exchange rates used in Iran – would no longer be allocated.

“Anyone who received the 28,500-toman dollar pocketed it, so we will not give it out anymore,” Pezeshkian said, arguing that multiple exchange rates had benefited intermediaries rather than consumers.

Iran has long used subsidized exchange rates to support imports of basic goods and curb inflation, but critics say the system has encouraged corruption and widened inequality, particularly as sanctions and high inflation have strained the economy.

Pezeshkian said the government had spent about $18 billion on subsidies, adding that the funds could be used more effectively to improve living standards.

“We have given $18 billion in subsidies, when with this amount we could plan so that everyone’s table is the same,” he said.

“We are not removing subsidies; we are giving them to the final consumer,” Pezeshkian said.

Iran operates several exchange rates, including a market rate that trades far weaker than official or subsidized levels, creating price gaps that economists say incentivize arbitrage.

The preferential exchange rate system was introduced in April 2018 under former president Hassan Rouhani, when the dollar was fixed at 42,000 rials in an effort to stabilize prices amid mounting sanctions.

Iran’s economy has been under sustained pressure from US sanctions, high inflation and currency depreciation, complicating repeated efforts by successive governments to reform subsidies and unify exchange rates.

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