The Iranian rial continued to fall to new record lows on Saturday, despite the central bank announcing that it would inject up to $2 billion into the market to support the currency, as pressure from inflation, sanctions and the US naval blockade intensified.
The dollar's selling price on the free market rose to about 2.688 million rials, from about 2.632 million rials on Friday, according to Bonbast, while Alanchand showed the dollar reaching 2.695 million rials.
Inflation and sanctions intensify pressure
Iranian state television said state-owned banks had begun selling up to $2 billion in an attempt to support the rial, which has lost more than half its value over the past year.
The currency's decline coincided with the inflation rate exceeding 70%, driving up the cost of basic necessities and rents, while the US blockade is squeezing oil exports, a major source of Iran's foreign-exchange revenue.
The rial's decline and rising prices prompted many Iranians to buy dollars, other hard currencies and gold in an attempt to protect their savings from losing further value.
Central bank: Decline is temporary
Mehdi Darabi, deputy governor of the Central Bank of Iran for foreign-exchange affairs, attributed part of the rial's decline to what he described as misleading expectations promoted by US officials about the possibility of the Iranian economy collapsing.
Darabi told Iranian television that the idea that the Iranian economy is "on the verge of collapse" was being promoted in an attempt to influence the currency's exchange rate, stressing that the rial's current decline is temporary.
