In the first official reaction to a weeklong national currency fiasco that has seen the rial loosing 30 percent of its value against the dollar, the Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani said Iran will allocate 14.5 percent of its oil revenues and all its petrochemical sales to support the rial. Bahmani said that the CBI will provide enough dollars to a newly established state-run foreign exchange center to meet all demands. (Mehr News Agency, 1 October)
Other Iranian officials have not commented on nor confirmed CBI’s plans to use oil revenues to support the currency. It was not clear whether the government could afford using that huge amount of oil and petrochemical revenues on a currency on downward spiral while the severe financial sanctions against the country are still in effect.