Iranian Central Bank Governor Abdolnasser Hemmati said the country had sufficient foreign currency resources as economic pressure and intensifying U.S. sanctions continued.
At a conference in Tehran on Tuesday, Hemmati said Iran had sufficient foreign currency, addressing U.S. President Donald Trump. He also said the central bank was ready to inject $2 billion into the foreign exchange market.
Hemmati rejects assessment of economic collapse
Hemmati rejected assessments that Iran's economy had collapsed, saying the country continued to collect its foreign currency revenues and receivables. He said the economic system continued to function despite the new sanctions.
The central bank governor largely attributed the rial's recent depreciation against the dollar to psychological factors. He argued that the risk of hyperinflation in Iran remained low despite high inflation and extensive economic pressure.
Financing businesses becomes a priority after the war
Hemmati said unemployment had increased as a result of the war and damage to some infrastructure. He said providing financing to small and medium-sized businesses would become a priority in the second half of the Iranian year.
Sanctions add to pressure on the rial
The remarks came as the Iranian rial again faced pressure against the U.S. dollar. The pressure intensified as U.S. sanctions expanded and the U.S.-Israeli war affected Iran's economy.
The administration in Washington has recently expanded its policy of economic pressure on Iran, targeting the country's main sources of revenue and international trade.
Iran and the United States signed a 14-point memorandum of understanding in June aimed at ending the war. However, the interim agreement broke down shortly afterward.
