Kathmandu. Iran, which has been at war with the United States for a long time, is now facing a major crisis due to the weakening of the local currency.
The ongoing U.S. naval blockade on the Iranian-controlled Strait of Hormuz has worsened the situation. Iran’s central bank was forced to take the drastic step of selling the dollar and announcing $2 billion in investment to support the economy after the Iranian currency rial fell on Saturday.
The Iranian rial continued its sharp fall on Saturday, Reuters reported. Meanwhile, Iran’s central bank announced an investment of up to $2 billion to help the economy facing U.S. sanctions and naval blockades.
According to free martech website Bon-Bast.com, the US dollar is trading at about 26.88 million riyals compared to 26.32 million riyals on Friday. Meanwhile, AlEnchand.com reported that the value of the dollar was 26.95 million riyals.
Iranian state television reported that the central bank has started selling up to $2 billion to support the rial. It has lost more than half of its value in the past year. With inflation surpassing 70 percent, life is becoming increasingly difficult for ordinary Iranians who are unable to pay basic necessities or rent.
The biggest reason for this crisis that the people of Iran are facing is the US naval blockade around the Strait of Hormuz. This has blocked the country’s financial lifeline oil exports. To protect their savings, people are now buying dollars, other strong currencies or gold.
Mehdi Darabi, a foreign exchange aide to the governor of Iran’s central bank, blamed the decline of the riyal in part on false predictions made by U.S. officials about the collapse of the Iranian economy. “The enemy is using rumors that the Iranian economy is collapsing to influence the exchange rate of our currency,” Darabi said. — Agency
