Iran’s collapsing currency staged a limited recovery on Thursday, following an announcement of a European payment mechanism to circumvent expanding US sanctions.

In its latest historic drop, the Iranian rial had lost 20% of its value to enter Thursday at 190,000:1. By the end of the day, it rallied to 177,000:1, recovering 1/3 of week’s decline.

In January, the rial was at an already historic low of 45,000:1. It has been beset by a combination of long-term internal problems and the US sanctions, which have also affected production, investment, and employment and fed a resurgence in inflation.

Announcing US withdrawal in May from the 2015 nuclear deal, the Trump Administration ordered comprehensive sanctions — including on Iran’s energy and financial sectors — from November 5. But on Wednesday, European Union foreign policy chief Federica Mogherini said a “Special Purpose Vehicle” to bypass sanctions could be in place within the next six weeks.

Mogherini and Iranian Iranian Foreign Minister Mohammad Javad Zarif announced the payment channel on Monday at their meeting on the sidelines of the UN General Assembly in New York.

The European official said in her statement:

Mindful of the urgency and the need for tangible results, the participants welcomed practical proposals to maintain and develop payment channels, notably the initiative to establish a Special Purpose Vehicle to facilitate payments related to Iran’s exports, including oil, and imports, which will assist and reassure economic operators pursuing legitimate business with Iran.

The participants reaffirmed their strong will to support further work aimed at the operationalization of such a Special Purpose Vehicle as well as continued engagement with regional and international partners.

The European Union has said it will shield European companies from US punishment if they continue business with Iran. But the EU’s inablity to provide guarantees for the largest firms has led many of them to suspend or draw down their involvement.