Photo courtesy of Anadolu
Iran’s central bank said Tuesday the country has sufficient foreign currency reserves despite intensified US sanctions and mounting pressure on the rial, rejecting suggestions that the economy was heading toward collapse.
Central Bank Governor Abdolnasser Hemmati said authorities were prepared to inject $2 billion into the foreign exchange market as Tehran seeks to stabilize its currency, according to the semi-official Tasnim News Agency.
“Iran has foreign currency, and it has enough,” Hemmati said in remarks directed at US President Donald Trump during a conference in Tehran.
Hemmati said Iran continues to collect foreign currency revenues and receivables and has access to domestic reserves and other resources, although he declined to disclose details.
His remarks came as the Iranian rial faced renewed pressure against the US dollar amid tighter American sanctions and the economic fallout from the US-Israeli war.
The central bank governor acknowledged Iran was experiencing high inflation but rejected suggestions that the country had entered hyperinflation. He attributed much of the rial’s recent depreciation to what he described as psychological factors.
Hemmati also acknowledged an increase in unemployment following the war and damage to some infrastructure. He said small and medium-sized businesses would be prioritized for financing during the second half of the Iranian year.
Washington has expanded economic pressure on Tehran by targeting key sources of Iranian revenue and international trade, adding to longstanding strains on the Iranian economy.
Iran and the United States signed a 14-point memorandum of understanding in June aimed at ending their war, but the interim agreement subsequently faltered as tensions between the two countries persisted.