TEHRAN, Jan. 28 (Xinhua) -- Iran's rial tumbled to a record low against the U.S. dollar on Wednesday, Iran's Nour News reported.
The dollar traded above 1,580,000 rials in the domestic market, accelerating a decline that began over the weekend when the currency was around 1,510,000 rials. Data from currency-tracking websites indicate the rial has lost roughly 5 percent of its value since the start of the month.
Nour News attributed the slide to a mix of rising international tensions, domestic economic policies, global market fluctuations, and increased local demand for foreign currency.
The government has sought to stabilize the market, most recently through the December reappointment of former Central Bank governor Abdolnaser Hemmati. Hemmati replaced Mohammad-Reza Farzin, who resigned, and was tasked with curbing hyperinflation, stabilizing exchange rates, and addressing long-standing banking imbalances and economic corruption, according to the Iranian government.
Despite the sharp depreciation, Hemmati recently downplayed the volatility by stating that the foreign exchange market is following its "natural course."
The economic strain has also fueled domestic unrest. Last month, shopkeepers in Tehran's Grand Bazaar shuttered their stores to protest the rial's collapse and government plans to phase out certain food and fuel subsidies. The demonstrations, which began Dec. 28, quickly spread nationwide, taking on a political dimension and turning violent. Iranian authorities have repeatedly dismissed the unrest as foreign-instigated, accusing the United States and Israel of fomenting the riots. ■
