Iran’s rial fell to a fresh low against the US dollar on Saturday, prompting the central bank to inject billions of dollars into the market as the country struggles with sanctions, soaring inflation and pressure on its oil revenues.
The dollar traded at around 2.688 million rials on the free market, compared with 2.632 million a day earlier, according to currency-tracking website Bonbast. Another tracker, Alanchand, put the rate at about 2.695 million rials to the dollar.
Iranian state television reported that state-owned banks had begun selling up to $2 billion in foreign currency in an effort to support the rial, which has lost more than half its value over the past year.
The latest decline comes as inflation exceeds 70%, placing increasing pressure on households struggling with the cost of food, housing and other basic necessities.
US sanctions and a naval blockade have also placed heavy pressure on Iran’s economy by restricting oil exports, a key source of government revenue and foreign currency.
With confidence in the rial weakening, many Iranians have sought to protect their savings by purchasing dollars, other foreign currencies and gold.
Mehdi Darabi, an adviser to Iran’s central bank governor on foreign exchange affairs, said speculation about an imminent economic collapse was contributing to pressure on the rial.
Darabi accused US officials of attempting to influence market sentiment through predictions about Iran’s economy, telling state television that authorities regarded the latest depreciation of the currency as temporary.
