Central Bank of Iran Governor Abdolnaser Hemmati spoke on October 14 at the International Monetary Fund (IMF) Annual Meetings in Bangkok, rejecting U.S. claims that Iran’s economy is collapsing as nothing more than an illusion. He stressed that Iran is working to balance foreign currency supply with price stability even as it confronts a U.S. maritime blockade and financial isolation measures.
Hemmati explained that the central bank is securing foreign currency needed for imports of pharmaceuticals and essential goods, while treating inflation control, stabilization of inflation expectations, maintenance of financial system stability, and continuity of banking and payment services as its top priorities. According to data from the Statistical Center of Iran, the annual inflation rate reached 73.6% in September, making the response to rising prices an urgent challenge.
To address the sharp depreciation of the rial, the central bank launched a foreign exchange intervention program in late September, selling up to $2 billion (approximately ¥320 billion) through state-owned banks.
The United States resumed a blockade of Iranian ports in July, aiming to cut off Iran’s crude oil exports and squeeze its fiscal position. On August 24, Washington activated measures dubbed “Operation Economic Outcast,” seeking to sever Iran’s financial and commercial ties with foreign countries. In September, the U.S. expanded its targeting to Iranian airlines, intensifying pressure to deepen Iran’s isolation from the international community.
According to estimates from energy intelligence platform Vortexa, Iran’s seaborne crude oil exports averaged 230,000 barrels per day over a 14-day period in early September, but fell to zero by the second week of the month and remained at zero as of October 5.
In parallel with U.S. pressure, the rial has plunged. Data compiled by Bonbast, an Iranian foreign exchange data website, shows the currency has depreciated approximately 35% against the dollar since July.
Hemmati’s remarks signaled to the international community that while acknowledging the damage the U.S. economic blockade has inflicted on Iran’s real economy, the country’s economic management has not reached the point of collapse. His choice of the IMF Annual Meetings—a multilateral forum—appears aimed at highlighting the impact of sanctions while demonstrating the continuity of Iran’s policy management.
If the U.S. port blockade and financial isolation measures persist, Iran’s foreign currency revenues are likely to shrink further, and downward pressure on the rial will probably continue. Meanwhile, the extent to which the central bank’s currency intervention and prioritization of foreign currency allocation can support the supply of essential goods and the stability of the financial system will be the key focus going forward.