Central Bank of Iran Governor Abdolnasser Hemmati declared Tuesday that the country possesses sufficient foreign currency reserves to withstand ongoing US sanctions and heightened economic pressures, directly countering claims of imminent economic collapse.
Addressing US President Donald Trump during a conference in Tehran, Hemmati stated that Iran maintains ample foreign exchange holdings. He announced that the Central Bank is prepared to inject $2 billion into the foreign exchange market to stabilize the domestic currency.
Hemmati rejected characterizations that the Iranian economy is facing collapse, emphasizing that the central bank continues to receive foreign currency revenues and maintains undisclosed domestic and international reserves. He attributed the recent depreciation of the Iranian rial primarily to psychological factors, trade disruptions, and market speculation rather than fundamental insolvency.
While dismissing concerns that the economy has entered a hyperinflationary spiral, the central bank governor acknowledged the broader economic strain on the public, including rising unemployment caused by infrastructure damage and wartime disruptions. To mitigate these impacts, Hemmati outlined plans to prioritize financing for small and medium-sized enterprises during the second half of the Iranian calendar year.
The governor's remarks come as the rial experiences renewed volatility following an expanded US economic campaign and the breakdown of a 14-point memorandum of understanding signed in June. Washington's updated enforcement measures continue to target key Iranian trade corridors and foreign revenue channels.
