Iran central bank says forex reserves sufficient despite US pressure

Iran's central bank governor, Abdolnaser Hemmati, has asserted that the country holds sufficient foreign currency reserves to withstand the impact of US sanctions, and announced a plan to inject up to $2 billion into the foreign exchange market to stabilise recent volatility.

His remarks, carried by the semi-official Tasnim news agency, come after US Treasury Secretary Scott Bessent claimed that Iran was "lashing out kinetically because they are losing economically." Hemmati directly addressed the US President, stating that Iran has currency and enough of it.

The statement appears aimed at reassuring markets after Iranian officials, including President Masoud Pezeshkian, acknowledged growing economic difficulties stemming from US sanctions and a naval blockade. Hemmati acknowledged that economic conditions and livelihood management have become difficult, but dismissed any notion of collapse as "psychological warfare."

The Iranian rial plunged to a record low in August, crossing the psychological threshold of 2 million rials per US dollar. Annual inflation reached 66% in July. The central bank says it continues to collect foreign currency receivables and holds domestic reserves, though it declined to disclose further details.

Washington has increasingly relied on economic pressure to force Tehran to change its behaviour, with Bessent warning that businesses dealing with Iran could face US sanctions.