Iranian rial at new low as central bank sells dollars

The Iranian rial has experienced its most significant decline in over a year, losing more than half of its value. (EPA Images) In a bid to stabilize the currency, the central bank announced a potential injection of up to US$2 billion. The US dollar has seen a higher exchange rate, with sellers receiving approximately 2.688 million rials per dollar, up from 2.632 million a day earlier.

This sharp rise in the dollar's value compared to the rial comes amid economic hardships for ordinary Iranians, exacerbated by a US blockade and an inflation rate surpassing 70%. The government's inability to fund essential services such as rent and basic goods has pushed many citizens to seek alternative assets, including dollars, other hard currencies, and gold.

Mehdi Darabi, a spokesperson for the central bank's governor on foreign exchange affairs, attributed the rial's decline partly to unfounded predictions of economic collapse by US officials. Darabi cautioned that the current decline is temporary, suggesting the Iranian economy's resilience.