Iran’s rial hits fresh low as $2 billion currency intervention fails to stem slide

Iran's national currency, the rial, has reached a new low against the US dollar, with the central bank's recent $2 billion intervention failing to halt the downward trend. The central bank announced the injection of up to $2 billion to stabilize the rial as the country grapples with US sanctions and a naval blockade. The exchange rate for the US dollar against the rial rose to approximately 2.688 million rials, up from 2.632 million on the previous day, according to online tracking websites bon-bast.com and alanchand.com.

State television reported that state banks commenced selling up to $2 billion to support the currency, which has plummeted more than half of its value over the past year. The Iranian economy is facing a severe inflation rate of over 70%, exacerbating the plight of ordinary citizens who struggle to afford basic necessities or rent.

As the US blockade has cut off Iran's primary source of income - oil exports, many Iranians are turning to dollars, other hard currencies, or gold as 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 what he termed as "false predictions" by US officials about the collapse of the Iranian economy.