Iran Warns Currency Buyers as Rial Hits Record Low as Global Tensions Add Pressure

03/05/2026

Iran Warns Currency Buyers as Rial Hits Record Low as Global Tensions Add Pressure

TEHRAN, May 3: Iran’s central bank issued a warning on Sunday after the national currency, the rial, plunged to a record low on the open market, with the US dollar trading at around 1.87 million rials.

The central bank cautioned that purchasing foreign currency at elevated rates could lead to losses, saying prices may stabilize if expectations shift, supply improves, or targeted interventions are carried out.

The rial also weakened sharply against other major currencies, falling to 2.23 million per euro and 2.58 million per British pound, underscoring mounting pressure on Iran’s already strained economy.

Meanwhile, global economic concerns linked to regional tensions added to market uncertainty. Neel Kashkari warned that prolonged conflict involving Iran could heighten inflation risks and weaken economic growth, limiting the Federal Reserve’s ability to guide interest rate policy.

He pointed to the continued disruption around the Strait of Hormuz, a critical energy route, as a key factor influencing global inflation and demand pressures.