With annual inflation running at more than 50%, Iranians have been trying to protect the value of their savings by buying foreign currency or gold.
Iran's rial currency sank to a record low against the U.S. dollar on Saturday despite central bank measures aimed at cooling demand for foreign currency from savers worried about inflation and the country's economic prospects.
The rial was trading at 575,000 on the unofficial free market against the dollar, compared to 540,000 on Friday, according to foreign exchange site Bonbast.com. The website bazar360.com also gave the rate as 575,000.
Seeking to cool the market and ease demand for dollars, the central bank on Saturday lifted a ban on private exchange shops selling hard currencies.
Last week, it opened an exchange centre to allow ordinary Iranians to purchase foreign currency, but some market analysts said the move had yet to dampen appetite for greenbacks.
Foreign exchange traders say the rial's depreciation stems partly from the unrest and Iran's increased isolation in the face of Western sanctions over its human rights record and Russia's use of Iranian-made drones in Ukraine.
The reimposition of U.S. sanctions in 2018 by then President Donald Trump have harmed Iran's economy by limiting Tehran's oil exports and access to foreign currency.
Image - Reuters