Iran's central bank chief says currency weakness is 'temporary'

Iran's central bank governor, Abdolnaser Hemmati, said on Monday that the rial's sharp depreciation was temporary, as the currency, already weakened by war, fell further. The remarks came as the United States prepared to announce a fresh wave of economic pressure against Tehran.

Why is Iran's central bank chief calling the currency drop temporary?

Hemmati blamed the rial's fall on American political propaganda rather than economic weakness, saying price fluctuations happen but the situation will improve. The currency lost nearly 10 percent of its value in two weeks, trading over 2 million rials to the US dollar on the black market Monday.

How far has the Iranian rial fallen?

The rial traded on the black market at over 2 million to the dollar on Monday, according to websites that track the unofficial rate. It stood at around 1.7 million to the dollar before the war and hit a then-record low of 1.8 million in late April. Iran maintains several official fixed exchange rates, but unofficial online rates are generally treated as the real benchmark.

What did Hemmati say about US pressure on Iran's economy?

"These increases (in prices of foreign exchanges) are temporary, meaning they fluctuate," Hemmati said, according to remarks aired on state TV. He said Iran would not abandon its economic path over what he called a temporary fluctuation caused by propaganda attacks, referring to US threats to sharply expand sanctions.

What is the US planning against Iran's economy?

US Treasury Secretary Scott Bessent is expected to announce a new wave of economic pressure on Iran, as Washington continues its blockade of Iranian ports in the Gulf and the Strait of Hormuz. "This will be the largest coordinated economic isolation campaign in world history," Bessent said.