Iran’s rial falls past 2 million to the dollar as central bank chief seeks to calm markets

Iran’s rial has fallen to a record low of more than 2 million to the U.S. dollar, prompting Central Bank Governor Abdolnaser Hemmati to promise a $2 billion injection into the foreign-exchange market.

Hemmati said Iran had enough foreign-exchange reserves despite U.S. sanctions. “I am showing the U.S. president that Iran has foreign exchange, and plenty of it,” he said.

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I am showing the U.S. president that Iran has foreign exchange, and plenty of it.

He added that the central bank held domestic reserves and other resources and was continuing to recover foreign-currency receivables, although he said the details could not be made public. “I want to be completely honest with the people: economic conditions and the management of people’s livelihoods have indeed become difficult, but collapse has never happened and never will,” Hemmati said. He described talk of collapse as psychological warfare and said the situation would soon settle.

The remarks were presented as an attempt to reassure the market. President Masoud Pezeshkian and other officials have also acknowledged economic hardship, citing U.S. sanctions and a maritime blockade. Annual inflation reached 66% in July, adding pressure as the currency weakened.

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I want to be completely honest with the people: economic conditions and the management of people’s livelihoods have indeed become difficult, but collapse has never happened and never will.