Iranian rial hits record low as central bank injects $2 billion

The Iranian rial continued its downward spiral on Saturday, reaching a record low as the central bank attempted to stabilize the currency amid economic turmoil. The US dollar was trading at approximately 2.688 million rials, up from 2.632 million the previous day, according to free-market tracking website bon-bast.com. Another source, alanchand.com, reported an even higher rate of 2.695 million rials per dollar.

In response to the crisis, state television announced that state banks began selling up to $2 billion to prop up the rial, which has lost more than half of its value in the past year. The economic strain is exacerbated by an inflation rate exceeding 70%, making life increasingly difficult for ordinary citizens who struggle to afford basic necessities and rent. The US blockade has severely restricted Iran's financial lifeline, particularly its oil exports.

Many Iranians are turning to safe-haven assets such as dollars, other hard currencies, or gold to protect 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 described as false predictions by US officials about the imminent collapse of the Iranian economy. 'It is suggested that the Iranian economy is about to crash... The enemy is using this to affect the exchange rate of our currency,' Darabi told state TV, asserting that the current fall of the rial is temporary.