Iran Denies Economic Collapse Amid Sanctions, Cites Sufficient Foreign Currency

Iran's Central Bank Governor Abdolnasser Hemmati has refuted US claims that the country is facing economic collapse under intensified sanctions. Speaking at a conference in Tehran, Hemmati said Iran has sufficient foreign currency reserves to meet its needs, despite the economic pressure.

The governor attributed the recent depreciation of the rial against the US dollar largely to 'psychological factors', rather than economic fundamentals. He also rejected suggestions that Iran had entered hyperinflation, saying the likelihood remains low despite high inflation rates and extensive economic pressure.

Hemmati acknowledged that unemployment has risen due to the war and damage to some infrastructure, but emphasized that small and medium-sized businesses would be prioritized for financing in the second half of the Iranian year. He also announced that the central bank is ready to inject $2 billion into the foreign exchange market.

Hemmati's remarks came as the Iranian rial faces renewed pressure against the US dollar amid intensified US sanctions and the economic repercussions of the US-Israeli war.