Iran: Tehran Claims Sufficient Foreign Reserves Despite US Sanctions

07:15

While Washington asserts that economic pressure is increasingly weakening Tehran, the Iranian central bank aims to project confidence. Its governor claims that the country has enough foreign currency reserves and is prepared to inject up to $2 billion into the market to mitigate recent tensions on the rial.

The battle between the United States and Iran is also taking place in the monetary arena. As US sanctions continue to weigh on the Iranian economy, Tehran's authorities are working to reassure about their ability to preserve their foreign reserves and stabilize the currency market.

The governor of the Iranian central bank, Abdolnaser Hemmati, stated on Tuesday that the country has sufficient foreign currency reserves despite the sanctions imposed by Washington.

Up to $2 Billion to Stabilize the Market

In response to recent fluctuations in the currency market, the central bank is ready to intervene. Abdolnaser Hemmati indicated that it could inject up to $2 billion to calm volatility and support the currency market.

This announcement comes as the rial remains under pressure and economic tensions fuel concerns about purchasing power and the country's financial stability.

For Iranian authorities, the central bank's intervention aims to prevent a new surge in demand for foreign currency from causing a chaotic depreciation of the national currency.

A Response to Washington's Statements

Tehran's communication also comes in reaction to remarks made by US Treasury Secretary Scott Bessent.

He suggested that Iran was reacting aggressively because it was losing the "economic war" against the United States.

Tehran is therefore trying to send a different message: despite the scale of the sanctions, its authorities claim to maintain enough financial leeway to intervene in the market and cushion shocks.

The Rial at the Center of Concerns

The Iranian currency is one of the main barometers of the country's economic situation. When the rial depreciates sharply, the cost of imported goods rises, and inflationary pressure can increase.

The intervention announced by the central bank aims precisely to avoid a worsening of this spiral.

However, Tehran's actual ability to sustainably maintain this strategy will depend on its available foreign currency resources, the evolution of exports, and the effectiveness of mechanisms allowing the country to access foreign currencies despite US restrictions.

For now, the Iranian government mainly wants to demonstrate that it retains control over its monetary market. The announcement of a possible injection of $2 billion thus serves both as an economic measure and a political signal directed at Washington and the markets.