Iranian Rial Hits Record Low as Dollar Surges Amid Sanctions

The Iranian rial has fallen to a record low against the US dollar, with the free market rate exceeding 2.2 million rials per dollar on Wednesday. This marks a significant depreciation, with the rial having lost 63% of its value against the dollar since March and approximately 10% in the past week alone. The euro and British pound have also reached unprecedented levels against the Iranian currency. The decline is attributed to renewed US sanctions and attacks, which have tightened economic pressure on Iran, restricted trade routes, and reduced oil export revenues. In response, the Central Bank of Iran's governor, Abdolnaser Hemmati, pledged to inject $2 billion into the foreign exchange market to stabilize the rial. Hemmati suggested that psychological factors, rather than purely economic ones, were driving the slide, while acknowledging the inflationary pressures on citizens. The collapse of the rial directly impacts consumer prices, increasing the cost of imports and eroding the purchasing power of savings.