The Impact of Exchange Rate Policies and Currency Fluctuations on Food Security in the Islamic Republic of Iran

Abstract

One of the major and influential indicators of food security during the years following the Revolution has been the continuous change in the official exchange rate under various titles. The exchange rate is one of the critical factors influencing food security. In this regard, the present study was conducted with the aim of examining the impact of exchange rate policies and currency fluctuations on food security. One of the key and influential variables affecting food security in Iran during the years after the Islamic Revolution has been the repeated changes in the official exchange rate with different labels. This study, adopting a descriptive–analytical approach, investigated the impact of exchange rate policies and fluctuations on the nation’s food security from the beginning of the Revolution until 2025. In the descriptive section, the factors influencing food production and distribution—including climatic conditions, water resources, production inputs, modern technologies, and trade structures—were identified. In the analytical section, using the SWOT model (strengths, weaknesses, opportunities, and threats), an evaluation was carried out, and practical strategies were proposed. The findings indicated that although the Iranian governing system has consistently emphasized the provision of minimum essential goods, the absence of a sustainable and long-term strategy has resulted in distributive approaches prevailing over food security policies. The allocation of preferential foreign currency for the import of agricultural and livestock inputs as well as consumer-ready goods has facilitated rent-seeking, “golden signatures,” and structural corruption, thereby increasing dependence on imports. Despite Iran’s natural and geopolitical capacities, food security policies have been primarily pursued within conservative and defensive strategies, while there exists potential for shifting toward aggressive and competitive strategies. Ultimately, the results emphasize that food security must be redefined as a sustainable national strategy based on strengthening agricultural production infrastructures, the intelligent utilization of virtual water, and targeted imports—not merely as a short-term distributive and executive policy.