Iranian Journal of Economic Research

Multiple Exchange Rates and Consumption Inequality: Evidence from Iran’s Tarjihi Exchange Rate Removal

Articles in Press

Document Type : Research Paper

Authors

Mahdi Ansari
Seyed Shahrad Yasini

Graduate School of Management and Economics, Sharif University of Technology, Tehran, Iran

10.22054/ijer.2026.86892.1377
Abstract
Multiple exchange rate systems have been used in many emerging markets to control the prices of essential goods and reduce consumption inequality. In Iran, in the spring of 2022, the Tarjihi exchange rate for most essential goods was eliminated, and cash transfers to households were increased. These changes provided an opportunity to examine the effects of multiple exchange rate policies on consumption inequality. This study assesses the effects of this policy on consumption inequality in Tehran. For this purpose, daily sales data from one of Tehran's major chain stores, consumer price index data, and income data from the Refah Database were used. The effects of this policy were analyzed in 16 out of 22 regions of Tehran with varying income levels using a triple difference-in-differences approach. The results indicate that, although overall consumption inequality between districts in Tehran did not change significantly, in some product categories, such as meat and dairy, inequality increased in the medium term. This study is the first to examine the impact of the policy package that eliminated the Tarjihi exchange rate and increased cash transfers on consumption inequality, providing valuable insights for policymakers in assessing the effectiveness of multiple exchange rate policies.

Keywords

Multiple Exchange Rates
Consumption Inequality
Triple Difference-in-Differences
Subjects
Iranian Journal of Economic Research

Articles in Press, Accepted Manuscript
Available Online from 30 September 2026

  • Receive Date 14 July 2025
  • Revise Date 22 September 2026
  • Accept Date 14 July 2026
  • First Publish Date 30 September 2026

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