Iran Has Enough Foreign Currency Despite US Sanctions: Central Bank Chief

DUBAI: Iran possesses ample foreign currency reserves, despite US sanctions, according to Central Bank Governor Abdolnaser Hemmati. Speaking on Tuesday, Hemmati affirmed the nation's financial stability amidst the economic pressures. The central bank is prepared to inject up to US$2 billion into the foreign exchange market to quell recent market volatility, he stated.

Hemmati's remarks were intended to reassure global markets following comments from Iranian officials, which highlighted the economic challenges faced by the country due to US sanctions and a naval blockade. Iran's Central Bank continues to collect foreign currency receivables and holds domestic reserves, although specific details remain undisclosed.

Despite Iran's currency reaching a record low in August and annual inflation hitting 66% in July, Hemmati emphasized that economic conditions and livelihood management are difficult, but collapse is not imminent. This assertion is presented as psychological warfare, with Hemmati predicting the situation will stabilize soon. US Treasury Secretary Scott Bessent earlier suggested that Iran was lashing out due to economic losses, emphasizing that the US was using economic pressure to compel Iran to comply with demands.

Washington has increasingly relied on economic sanctions to influence Iran's behavior, with Bessent warning that entities engaging with Iran may face US sanctions.