Iran's Central Bank Governor Abdolnaser Hemmati said on Tuesday that the country has sufficient foreign currency reserves despite US sanctions, and announced the central bank's readiness to inject up to $2 billion into the foreign exchange market to calm recent volatility.
"I am telling the President of the United States: Iran has (foreign) currency and it has enough," Hemmati said, according to the semi-official Tasnim news agency.
His remarks followed a statement by US Treasury Secretary Scott Bessent, who said on Monday that Iran was taking US sanctions seriously and was "lashing out kinetically because they are losing economically." Bessent has also warned that those doing business with Iran could face US sanctions.
Rial at record low
Iran's currency plunged to a record low in August, crossing the psychological threshold of 2 million rials to the US dollar, while annual inflation reached 66% in July. The rial has faced renewed pressure amid intensified US sanctions and the economic repercussions of the US-Israeli war.
Hemmati said the central bank was continuing to collect foreign currency receivables and had domestic reserves as well as other resources, though he added that details could not be disclosed.
"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," Hemmati said.
He attributed the rial's recent depreciation largely to what he called psychological factors, and rejected suggestions that Iran had entered hyperinflation, saying the likelihood remains low despite high inflation and extensive economic pressure.
Economic challenges acknowledged
Hemmati acknowledged that unemployment had risen due to the war and damage to some infrastructure, and said small and medium-sized businesses would be prioritized for financing in the second half of the Iranian year.
His comments appeared aimed at reassuring markets after Iranian officials, including President Masoud Pezeshkian, pointed to growing difficulties for an economy facing US sanctions and a naval blockade.
US pressure campaign
Washington has recently expanded its economic pressure campaign against Tehran, targeting key sources of Iranian revenue and international trade. The United States has been increasingly relying on economic pressure to try to force Tehran to meet its demands.
Iran and the US signed a 14-point memorandum of understanding in June aimed at ending their war, but the interim deal quickly faltered.