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

The Iranian central bank's chief, Abdolnaser Hemmati, declared on Monday that the weakening of Iran's national currency, the rial, is temporary. The rial has been hit hard by the ongoing war, with its value plummeting further in recent weeks. Hemmati pointed out that the currency has lost nearly 10% of its value over the past two weeks, with the situation worsening as the United States prepares to outline its economic warfare strategy against Tehran.

The governor attributed much of the economic hardship to American political propaganda, expressing confidence that the situation will improve and the problems will be resolved. The rial was trading at over 2 million per US dollar on the black market on Monday, according to websites that track these figures. Before the war, the exchange rate stood at around 1.7 million to the dollar, while in late April, just two months into the conflict, it reached a record low of 1.8 million.

Iran maintains several fixed exchange rates, but unofficial rates are typically monitored through online sources. Hemmati stated that Iran cannot allow a temporary fluctuation caused by propaganda attacks to derail its progress, in reference to US threats to intensify economic sanctions against the Islamic republic. US Secretary of the Treasury Scott Bessent is anticipated to unveil further economic pressure on Iran as Washington continues to impose sanctions on Iranian ports in the Gulf and the strategic Strait of Hormuz, describing this as the largest coordinated economic isolation campaign in world history.