Governor’s statement
Iran’s Central Bank Governor Abdolnaser Hemmati said on Monday that the depreciation of the rial is "temporary." Hemmati explained that the price increases in foreign exchange are temporary fluctuations.
Context of the currency crisis
The rial has lost nearly 10 % of its value in the last two weeks. Before the war it traded at about 1.7 million rials per dollar; in April, shortly after the conflict began, it hit a record low of 1.8 million. Currently, the black-market rate is over 2 million rials per dollar.
Causes and outlook
Hemmati blamed much of Iran’s economic pain on "American political propaganda" and said the situation will improve. He warned that the country cannot "ruin its path" because of temporary fluctuations caused by propaganda attacks.
International reaction
U.S. Treasury Secretary Scott Bessent is expected to announce a new wave of economic pressure on Iran, as Washington continues to block Iranian ports in the Gulf and the Strait of Hormuz. Bessent described the initiative as the "largest coordinated economic isolation campaign in world history."
