The Impact of the Travel Dollar Price Shock on Iranians' Travel Planning The recent decision regarding the travel dollar exchange rate indicates a broad shift in the government's currency policy that directly affects citizens' costs for foreign travel. According to reports, the selling rate of the travel dollar has seen a sudden and significant increase in recent days, reaching a cost price of around 102,000 tomans after a 40 percent jump compared to last month. Previously, there was a considerable gap between the official exchange rate (around 70,000 to 72,000 tomans) and the free market rate, which created a rent-seeking opportunity for recipients of subsidized currency. This sharp increase appears to be aimed at reducing this gap and bringing the subsidized exchange rate closer to the free market rate. With this change, the price difference between each subsidized dollar and the free market has significantly decreased, and the profit from obtaining it for travelers has become much less. This effectively eliminates the incentive to acquire currency solely for profit. However, the main consequence of this measure is the sharp increase in travel costs for genuine travelers. Although this rate only applies to the $500 quota, it psychologically and practically signifies that leaving the country has become more expensive for Iranians. Experts believe that in the long term, this policy could move towards a single exchange rate and greater market stability, but in the short term, it will place additional pressure on travelers. This price increase, on the eve of the busy fall travel season, could lead to a decrease in demand for foreign travel and a resurgence of domestic travel.