Iran foreign exchange and currency management

The Central Bank of Iran has implemented measures to manage foreign exchange supply and stabilize the national economy. Initially, the bank released $500 million in foreign exchange banknotes through the official banking network, including Mellat, Tejarat, and Saderat banks, to facilitate access for individuals and legal entities and to prevent speculative demand.

Following these measures, Central Bank Governor Abdonasir Himmeti defended the economy against claims of collapse, asserting that Iran maintains sufficient foreign exchange reserves for citizens and industrial needs. Himmeti attributed exchange rate volatility to a “psychological environment” rather than fundamental issues and stated the bank is prepared to inject up to $2 billion into the market to ensure stability.

Amidst escalating geopolitical tensions, US President Donald Trump claimed that Iran’s economy has collapsed and its military capabilities are severely diminished, asserting that the US now controls the Strait of Hormuz. These statements, alongside suggestions that military actions against Iran may not be long-lasting, have impacted global markets, contributing to a decrease in Brent crude oil prices and a slight drop in US 10-year Treasury yields. In response to these assertions, Himmeti refuted claims of economic collapse, maintaining that Iran’s economic system remains functional despite extensive sanctions and reiterating the readiness to supply up to $2 billion to the market to stabilize fluctuations.