Iranian rial at new low as central bank sells dollars

The Iranian rial has plummeted to a new low, losing over half of its value within the past year, according to state media. Iran's central bank announced on Saturday an injection of up to US$2 billion to bolster the struggling currency amid ongoing US sanctions and a naval blockade. The US dollar was sold for approximately 2.688 million rials on Saturday, up from 2.632 million rials the previous day, according to free-market tracking websites bon-bast.com and alanchand.com.

State television reported that state banks commenced selling up to US$2 billion to support the currency, which has witnessed a significant decline in value over the past year. The economy faces a severe inflation rate of more than 70%, making life increasingly challenging for ordinary citizens who struggle to afford basic necessities or rent as the US blockade restricts the state's financial resources – primarily through oil exports.

Many Iranians are turning to buying dollars, other hard currencies, or gold to seek safe havens for their savings. Mehdi Darabi, an aide to the central bank's governor on foreign exchange affairs, attributed the rial's decline partly to false predictions by US officials regarding the collapse of the Iranian economy. Darabi told state TV that the current fall of the rial was temporary, dismissing the notion that the Iranian economy is about to crash, as suggested by the enemy.