Iranian rial plummets to new record low against US dollar

The Iranian rial has plummeted to a new record low against the US dollar, deepening the country’s economic struggles amid US sanctions and a naval blockade. On Sunday, reports indicated the dollar was trading at approximately 2.688 million rials in the free market, up from 2.632 million rials the day before. Some currency platforms even placed the exchange rate as high as 2.695 million rials, highlighting the sharp decline.

In response to the crisis, Iran’s central bank announced plans to inject up to $2 billion into the market through state-owned banks to prop up the rial. The currency has lost over half its value in the past year alone. Last week, the dollar crossed the 2.5 million-rial mark for the first time, marking another historic low for the rial.

Mehdi Darabi, an adviser to the governor of Iran’s central bank on foreign exchange affairs, attributed part of the decline to statements by US officials predicting the collapse of the Iranian economy. Speaking to Iranian state television, Darabi claimed such remarks were adding pressure to the currency market and alleged that Iran’s adversaries were manipulating the rial’s exchange rate. He described the current fall as temporary, asserting that authorities are working to stabilize the currency.