Iran central bank moves to calm currency market with $500 million injection
Iran’s central bank said it will inject $500 million into the currency market from Monday to ease pressure on the rial after weeks of sharp volatility, state media reported.
The central bank said the intervention is aimed at reducing demand in the open market and providing reassurance to businesses.
Analysts told the semi-official Fars news agency the injection could cut the dollar rate by up to 100,000 rials in the short term if delivered as cash or immediate transfers, though the effect would be limited if allocated through longer-term instruments.
Economists caution that such interventions often provide only temporary relief unless paired with structural reforms to boost exports, manage inflation and ensure transparency in foreign currency allocations.
The Iranian rial weakened on Sunday following the reimposition of snapback sanctions, trading at 111,400 per dollar, 130,370 per euro and 149,620 per pound on the open market.
