Iranian currency plunges further as dollar reaches 2.688 million rials

Another currency-tracking platform put the dollar’s value at around 2.695 million rials. In an effort to support the weakening currency, Iran’s central bank has announced plans to inject up to $2 billion into the market.

Iranian state television reported that state-owned banks had begun selling dollars to support the rial. The latest decline comes as Iran faces intensified economic pressure from US sanctions, restrictions affecting oil exports and heightened regional tensions.

Reuters reported that the rial has lost more than half of its value over the past year. The currency also crossed the 2.5 million-rial mark against the dollar last week, setting a new record low at the time.

Rising inflation has further increased pressure on Iranian households. Citizens are increasingly turning to US dollars, other foreign currencies and gold to protect their savings from the falling value of the rial., Iran’s inflation rate has exceeded 70%, making it increasingly difficult for ordinary citizens to meet the rising costs of food, housing and other essential goods.

Mehdi Darabi, an adviser to the governor of Iran’s central bank on foreign exchange affairs, attributed part of the latest pressure on the rial to statements by US officials predicting a possible collapse of the Iranian economy.

Speaking to state television, Darabi said such statements were increasing pressure in the currency market and claimed that Iran’s adversaries were using them to influence the exchange rate. He described the latest decline as temporary.

The weakening rial comes as Iran continues to face challenges in accessing foreign exchange earnings, particularly amid pressure on its oil revenues and continuing geopolitical tensions.