Iran’s Central Bank Governor Seeks to Reassure Public of Economic Resilience

As U.S. Treasury Secretary Scott Bessent issued his “economic D-Day” warning to third countries against assisting Iran, Central Bank of Iran Governor Abdolnasser Hemmati sought to reassure the public about the country’s economic resilience. His assurances, however, appear to have failed to persuade the markets, as the rial continued to depreciate against the dollar.

• August 24: Central Bank of Iran Governor Abdolnasser Hemmati responded to comments from the U.S. secretary of the Treasury, in remarks reported by Tabnak News Agency, which is affiliated with Supreme National Security Council Secretary Mohsen Rezaei:
  • “The U.S. Treasury secretary is merely blustering. There is nothing they have not already done, and their threats are ineffective … They have already done everything they possibly could. Their latest claims contain no new restrictions or pressures capable of bringing about our collapse.”
  • Illustrating the scale of the foreign-currency constraints at the time, Hemmati recalled the government’s oil and gas revenue from March 2020 to March 2021: “The government’s total oil and gas revenue amounted to $7 billion. We stood firm under those conditions, when Trump was in office, and made it through. We will get through the present circumstances as well … Today, our enemies say they intend to impose 100% sanctions. We ask them: What is left that you have not already done?”
  • Emphasizing the measures taken to manage Iran’s foreign-currency resources, the central bank governor said: “We have not been sitting idle either. Thanks to the planning that has been carried out, we have no difficulty supplying foreign currency. We can provide entrepreneurs with as much foreign-currency cash as they require … American pressure cannot continue indefinitely. I can tell you with confidence that they need these circumstances to end more than we do.”
  • Addressing the further collapse of the rial against the dollar, Hemmati said: “I believe this is temporary. We should not alter the course of our foreign-exchange policies because of short-term fluctuations. I am optimistic about the economy’s future and believe that many of the existing problems can be resolved. Since the beginning of the year, we have supplied an average $175 million in foreign currency per day.”

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