Iran central bank injects $2 billion to stabilize rial

The Central Bank of Iran has announced a plan to inject up to $2 billion in foreign currency into the market to stabilize the rial, which has recently hit record lows against the US dollar. Central Bank Governor Abdolnaser Hemmati stated the move is intended to demonstrate to US President Donald Trump and Treasury Secretary Scott Bessent that Iran does not face a shortage of foreign exchange reserves despite recent US sanctions.

The central bank intends to offer up to $2 billion in banknotes at rates below the free-market price, allowing individuals to purchase up to $10,000. Hemmati noted that while total foreign currency injections through early October reached approximately $24.9 billion, this represents a 12 percent decrease compared to the same period last year. He emphasized that while industrial sectors have felt the impact of the decline, the supply of foreign currency for essential goods, such as medicine, has actually increased by 30 percent.

Economists have expressed skepticism regarding the long-term efficacy of the intervention. Critics argue that selling banknotes may only provide temporary relief from speculative demand and fails to address structural issues, including declining foreign currency revenues, difficulties in international money transfers, and the ongoing impact of economic sanctions.