Iran's Currency in Free Fall Amid US Sanctions Pressure

The US has intensified economic pressure on Iran through sanctions, aiming to weaken its economy and force it to change its policies. In response, Iran's Central Bank Governor Abdolnaser Hemmati stated that the country has sufficient foreign currency reserves to withstand the growing US economic pressure.

Hemmati acknowledged that economic conditions in Iran have become increasingly difficult, with a record fall in the Iranian rial and high inflation. The rial fell to a record low of 2 million rials to the US dollar in August, while annual inflation reached 66% in July.

The central bank is prepared to inject up to $2 billion into the foreign exchange market to stabilise the rial, according to Hemmati. However, analysts warn that intervention can only provide temporary relief if underlying problems such as inflation and declining currency value remain unresolved.