1 day ago
Iran Says Currency Reserves Hold Despite US Sanctions
Iran’s central bank says the country still has enough foreign money despite US sanctions.
The bank says it could put up to $2 billion into the currency market to reduce recent changes in prices.
Iran’s currency has become much weaker.
Prices also rose sharply, with inflation reaching 66% in July.
Iran’s central bank chief said life is difficult but the economy has not collapsed.
He called claims of an imminent collapse psychological warfare.
US Treasury Secretary Scott Bessent gave a different view.
He said Iran was acting aggressively because sanctions were hurting its economy.
Central Bank Governor Abdolnaser Hemmati said Iran has sufficient foreign currency despite US sanctions.
Iran’s central bank is prepared to inject up to $2 billion into the foreign-exchange market.
Hemmati acknowledged difficult economic and livelihood conditions but rejected claims that Iran faces collapse.
Iran’s currency fell below two million rials per US dollar in August, while July inflation reached 66%.
US Treasury Secretary Scott Bessent said Iran was responding militarily because it was losing the economic war.
- Who
- Iranian Central Bank Governor Abdolnaser Hemmati and US Treasury Secretary Scott Bessent.
- What
- Hemmati said Iran has sufficient foreign-currency reserves and may inject up to $2 billion into the exchange market, while Bessent said sanctions were damaging Iran’s economy.
- Where
- Iran and its foreign-exchange market; the US sanctions were imposed by Washington.
- When
- Hemmati made the comments on Tuesday; Bessent made his remarks on Monday. The article also reports August currency data and July inflation data.
- Why
- Hemmati sought to reassure markets and the public amid currency volatility, sanctions, and economic pressure.
Iranian Central Bank View
US Treasury View
Foreign-currency reserves
Iranian Central Bank View
Abdolnaser Hemmati said Iran has enough foreign currency, including domestic reserves, receivables, and other undisclosed resources.
US Treasury View
Scott Bessent’s comments portrayed Iran as economically weakened by US sanctions.
Economic condition
Iranian Central Bank View
Hemmati acknowledged that economic conditions and managing livelihoods are difficult but said Iran has not collapsed and will not collapse.
US Treasury View
Bessent said Iran was “losing economically” and was lashing out because of the pressure.
Policy response
Iranian Central Bank View
Iran’s central bank said it was ready to inject up to $2 billion into the foreign-exchange market to calm volatility.
US Treasury View
Washington is increasingly relying on economic pressure and warns businesses dealing with Iran that they could face US sanctions.
Key facts
- Central bank governor
- Abdolnaser Hemmati
- Planned market intervention
- Up to $2 billion
- Currency level
- The rial crossed two million per US dollar in August
- Annual inflation
- 66% in July
- US position
- Scott Bessent said Iran was losing the economic war
- Iranian position
- Hemmati said Iran has sufficient foreign currency and that collapse has not occurred
- Additional pressure
- The article says Iran is facing US sanctions and a naval blockade
Quotes
Abdolnaser Hemmati
Governor of Iran’s Central Bank
“I tell the people with complete honesty that economic conditions and livelihood management have become difficult, but collapse has never happened and will never happen. These claims are just psychological warfare and the dust will settle soon,”
NDTV
“I am telling the President of the United States: Iran has (foreign) currency and it has enough,”
NDTV
Sources
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