The Iranian Rial Sinks as Inflation Soars

• Iranian rial fell to around 2.69 million per US dollar on the free market.

• Iranian central bank announced up to $2 billion in foreign currency sales to support the rial.

• Inflation above 70% is making food, housing and other necessities increasingly expensive.

Iranian rial has fallen to a new low against the US dollar as the country faces mounting economic pressure from US sanctions and restrictions affecting its financial and oil revenues.

The dollar was trading at around 2.688 million rials, compared with approximately 2.632 million on Friday, according to free-market tracking website Bon-bast.com. Another exchange-rate website, Alanchand.com, reported the dollar at around 2.695 million rials.

To support the currency, Iranian state banks have begun selling foreign currency, with state television reporting that up to $2 billion could be made available.

The rial has lost more than half of its value over the past year, while inflation has risen above 70 per cent, placing growing pressure on households.

For many Iranians, the weakening currency has made basic goods and housing increasingly difficult to afford. Businesses and consumers are also facing higher costs as the falling rial makes imported products more expensive.

Many citizens have turned to US dollars, other foreign currencies and gold as safer options for protecting their savings against further losses in the rial.

Mehdi Darabi, an adviser to the central bank governor on foreign exchange affairs, attributed part of the currency’s decline to what he described as predictions by US officials that Iran’s economy would collapse.

Iranian authorities are seeking to stabilize the exchange rate as the country’s economy comes under continued pressure. The government relies heavily on oil revenues, while sanctions and restrictions have complicated access to international markets and foreign currency.

The latest fall in the rial highlights the growing challenges facing Iran’s economy, with authorities under pressure to contain inflation, protect household purchasing power and restore confidence in the national currency.