Iran’s Rial in Freefall as Central Bank Turns to Foreign-Exchange Intervention - irannewsupdate.com
Iran’s Rial in Freefall as Central Bank Turns to Foreign-Exchange Intervention - irannewsupdate.com
Source: irannewsupdate.com
―
DW NOTE
The Central Bank of Iran is intervening in foreign-exchange markets to defend the rial — which means it's selling through dollar reserves to delay an inevitable reset. Iran's oil exports account for 80% of foreign-exchange earnings, and the Strait of Hormuz has been effectively closed for nine days. Intervention without revenue is just burning through the cushion before the next devaluation.