Iran’s central bank chief says currency weakness ‘temporary’

Iran's Central Bank chief, Abdolnaser Hemmati, stated on Monday that the decline in the value of Iran's national currency, the rial, is only temporary. The rial has been severely impacted by ongoing conflict and is now trading at over 2 million rials per US dollar on the black market, according to reports. This comes as the currency has lost nearly 10% of its value over the past two weeks, following an earlier significant drop just before the war began.

Hemmati attributed much of the economic pain to "American political propaganda" and expressed confidence that the situation would improve, leading to the resolution of the problems. The remarks were made as the black market rate stood at over 2 million rials against the US dollar, a significant increase from pre-war levels of around 1.7 million rials.

Iran has multiple fixed exchange rates, but unofficial rates are often tracked through online sources. Hemmati warned that Iran cannot allow a temporary fluctuation to ruin its progress due to these propaganda attacks, particularly with new economic sanctions being considered by the US. US Secretary of the Treasury Scott Bessent is anticipated to unveil additional economic measures against Iran as the nation faces one of the most extensive economic boycotts in history, including a blockade of Iranian ports in the Gulf and the strategic Strait of Hormuz.