Iran General NewsIran denies central bank resignation rumor

Iran denies central bank resignation rumor

-

Reuters: A senior Central Bank of Iran official has denied rumors that the bank’s governor has resigned, the ISNA news agency reported Saturday, in a week when the currency hit a record low amid rising inflation and concerns about tighter economic sanctions.

TEHRAN (Reuters) – A senior Central Bank of Iran official has denied rumors that the bank’s governor has resigned, the ISNA news agency reported Saturday, in a week when the currency hit a record low amid rising inflation and concerns about tighter economic sanctions.

“Mr (Mahmoud) Bahmani will remain firmly in his job and whoever has published this false report has made a mistake,” ISNA quoted a deputy central bank governor, Ebrahim Darvishi, as saying.

ISNA did not specify where the rumour had been published.

Bahmani has been at odds with President Mahmoud Ahmadinejad over the appropriate policies to control inflation, and has been unable to counter political resistance in order to raise interest rates on bank deposits that were lowered to below-inflation levels in April.

With Iranians pulling out their savings and seeking to buy foreign currencies, Iran has been unable to preserve the value of the rial, which has been under pressure since the rate cut.

New U.S. sanctions approved by President Barack Obama on New Year’s Eve caused a fresh run on the rial, pushing it down to 18,000 to the dollar Tuesday from around 13,500 rials in December.

The central bank injected more dollars into the market on Wednesday, aiming to rein it back to 14,000 rials, but on Saturday it was back close to 16,000 rials on the open market.

A medium-term fall in the rial could have severe consequences for inflation, already officially at just under 20 percent and rising, as imported goods will become more expensive.

Sanctions that make it harder for Iranians to access international banking services have already added to the cost of imports, and a weakening rial will worsen the situation in a country that is heavily reliant on imported manufactured goods.

Washington is leading an international push to impose sanctions over Iran’s nuclear research program. Major Western powers fear the program is aimed at making atomic weapons, although Iran says it is purely for peaceful purposes.

(Reporting by Hossein Jaseb; Writing by Robin Pomeroy; Editing by Kevin Liffey)

Latest news

Iran – Conflicting State Policies Deepen Social Crises

The Iranian regime has decided to spend about $800 million to encourage more childbirths in 2022 in an attempt...

NCRI Hosts Conference in France To Address the Need To Hold the Iranian Regime Accountable for Its Crimes

On January 17, the National Council of Resistance of Iran (NCRI) hosted a conference in Auvers-sur-Oise, north of Paris,...

Iran’s Regime Tries To Whitewash Its Crimes

Iran’s State Prisons and Security and Corrective Measures Organization, which is under the supervision of the Judiciary, has distributed...

Iran: Raisi’s Six-Month Economic Record Contrasts Sharply With His 7,000-Page Program

In the summer of 2021, the Iran regime’s supreme leader Ali Khamenei installed the infamous Judiciary Chief Ebrahim Raisi...

Iran’s Export in the Casino of the State Mafia

The Chairman of the Tehran Chamber of Commerce, Mohammad Khansari, has stated that the total volume of exports of...

Will Iraq Get Ever Free of Iran’s Sway?

After many years and massive popular protests, there are indications that Iraq’s body politic has decided to separate its...

Must read

US places sanctions on senior Tehran official

AFP: The United States placed sanctions on Tehran province's public...

World powers to discuss possible Iran sanctions

Reuters: Six world powers agreed on Friday to discuss...

You might also likeRELATED
Recommended to you