Iran Blames US Sanctions as Rial Falls to Record Low Against Dollar

Iran’s rial has fallen to about 2.1 million to the US dollar, and the government is openly attributing the plunge to American sanctions. Government spokesperson Fatemeh Mohajerani said the exchange rate reflected “US pressure and sanctions,” which she said had intensified the country’s economic difficulties.

The central bank is preparing to intervene. Governor Abdolnaser Hemmati said Iran could inject as much as $2 billion in foreign currency to manage and stabilize the market. The bank injected $500 million last week, but the rial still remains under heavy pressure after dropping below 2 million per dollar in August.

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The dollar reaching 2.1 million rials is the result of US pressure and sanctions, and we do not deny this pressure.

Hemmati said Iran had enough foreign currency to keep paying for essential imports, including food, medicine, animal feed and industrial raw materials. More than $18 billion has been supplied for imports since the Iranian year began on March 21, he said. The funds come from oil and non-oil export revenues, as well as reserves that sanctions have not frozen.

The governor acknowledged that sanctions and the economic effects of war had made daily life more difficult. He rejected warnings of an economic collapse, saying the central bank was concentrating on slowing inflation through monetary policy and tighter oversight. Annual inflation stood at 66% in July, adding to pressure on households and businesses.

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I officially announce that the central bank is ready, if necessary, to inject up to $2 billion in foreign currency to manage and stabilize the market.