Iranian Rial Hits New Record Low Amid Economic Turmoil

The Iranian rial has hit a new record low, with the US dollar now trading at approximately 2.688 million rials in the country's free market. This sharp decline follows a previous record set just days ago when the dollar crossed the 2.5 million rial mark. In response to the weakening currency, Iran's central bank has announced plans to inject up to $2 billion into the market. State-owned banks have already begun selling dollars to bolster the rial's value.

The currency's collapse is largely attributed to intensified economic pressure from US sanctions, restrictions on oil exports, and rising regional tensions. Over the past year, the rial has lost more than half of its value, exacerbating financial difficulties for Iranian households. Inflation has surged past 70%, making it increasingly challenging for citizens to afford essential goods like food and housing.

Mehdi Darabi, an adviser to the governor of Iran’s central bank, suggested that recent statements by US officials predicting an economic collapse have contributed to the rial's decline. He described the latest pressure as temporary and claimed that adversaries are using such statements to influence the exchange rate. Despite the central bank's efforts, the rial continues to face challenges due to limited access to foreign exchange earnings, particularly from oil revenues.