Iran rations euros as fights break out at foreign-exchange offices amid rial's plunge to record lows

• Iran will limit the purchase of euros to 500 a year for air passengers.
• Previously, Iranians were able to buy up to 5,000 euros per year from authorized sellers.

The Central Bank of Iran on Tuesday sharply curtailed the ability to buy euros amid continued weakness in the rial.

Iran will limit the purchase of euros to 500 a year for air passengers, according to state-run media cited by Bloomberg. Previously, Iranians were able to buy up to 5,000 euros ($5,324.3) per year from authorized sellers.

This comes as foreign-exchange sellers in Tehran were overrun by people looking to trade in their rials before the Iranian year's end.

Monday's push to sell rials followed the currency's rapid decline in value, dropping to a record low of 501,300 rials per US dollar. The day's massive sell-off even led to fighting outside foreign-exchange offices, as customers tried to break through security, according to Bloomberg.

The rial's issues began in 2018, when the US walked away from the Iranian nuclear deal and reimposed oil sanctions on the country.

Meanwhile, Iran's crackdown on months of political protests have made the currency's situation worse, as the West tried to punish Iran for its human rights violations with more rounds of sanctions. Currently, the country suffers a nearly 50% inflation rate.

Bloomberg reported that the CBI will also work on stabilizing the rial's value by holding onto foreign currencies brought in by export revenues through industries with access to subsidized fuel.