Iranian Rial Hits Record Low Amid Economic Crisis and US Sanctions

The Iranian rial continued its sharp decline on Saturday, reaching a record low against the US dollar amid economic turmoil. The central bank responded by injecting up to $2 billion to prop up the currency, which has lost more than half its value over the past year. According to free-market tracking website bon-bast.com, the dollar was traded at around 2.688 million rials, up from 2.632 million the previous day. Another site, alanchand.com, reported an even higher rate of 2.695 million rials per dollar.

State television announced that state banks had begun selling dollars to stabilize the currency, but the measures have so far failed to halt the rial's freefall. Inflation in Iran has surpassed 70%, making life increasingly difficult for ordinary citizens who struggle to afford basic necessities and rent. The economic strain has been exacerbated by a US blockade that has severely restricted Iran's oil exports, a key source of revenue.

In response to the crisis, many Iranians have turned to buying 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 part of the rial's decline to what he described as false predictions by US officials of an imminent economic collapse in Iran. He claimed that these statements were influencing the exchange rate, calling the current fall of the rial temporary.