Iranian Rial Hits New Low Despite $2 Billion Intervention
The Iranian rial reached a record low on October 3 as state banks injected $2 billion to combat hyperinflation and US sanctions.
The Central Bank of the Islamic Republic of Iran authorized a $2 billion injection into the market on October 3, 2026, in an attempt to stabilize the rial. Despite this intervention, the currency reached a new low, with the US dollar rising to between 2.688 million and 2.695 million rials. The rial has lost more than half its value over the past year.
Economic instability is driven by an inflation rate exceeding 70%, US sanctions, and a naval blockade restricting oil exports. In response to the devaluation, many Iranian citizens are moving their savings into gold and hard currencies to protect their wealth.
Mehdi Darabi, an aide to the central bank governor on foreign exchange affairs, attributed the currency's decline in part to false predictions by US officials regarding the collapse of the Iranian economy.
