Iranian rial hits record low

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Central bank pledges up to $2bn to support currency

The Iranian rial has fallen to a new record low against the US dollar, extending a prolonged decline in its value.

According to reports, the Iran’s central bank has announced plans to provide up to $2 billion to the market to support the currency as the country faces severe economic pressure from US sanctions and a naval blockade.

The dollar traded at about 2.688 million Iranian rials in the open market, up from 2.632 million rials a day earlier. A separate currency-tracking platform put the dollar rate at as much as 2.695 million rials.

State television reported that state-owned banks had begun selling up to $2 billion to support the rial.

The currency has lost more than half of its value over the past year. Last week, it also fell beyond 2.5 million rials to the dollar, setting a new record low at the time.

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

Speaking to state television, Darabi said predictions of an economic collapse were increasing pressure on the market and that Iran’s enemies were using such statements to influence the rial’s exchange rate.

Darabi termed the latest fall in the currency as temporary.

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