According to Iran's Mehr News Agency, Abdel Nasser Hemmati, Governor of the Central Bank of Iran, stated that despite economic pressures and challenges in liquidity growth, Iran's monthly inflation rate has slowed, and the year-on-year inflation rate is gradually declining. Hemmati clarified that lower inflation does not mean prices have stopped rising, but rather that the rate of price increases has slowed. The Central Bank of Iran has developed response plans for different economic pressure scenarios and will continue to control liquidity and manage the exchange rate market. Regarding foreign exchange, Hemmati stated that since the beginning of this year, Iran has provided $24.9 billion in foreign exchange for imports, a decrease of approximately 12% compared to $28 billion in the same period last year. However, imports of basic goods have not decreased, and foreign exchange supplies for pharmaceuticals have actually increased by 30%. He indicated that the recent exchange rate appreciation is mainly influenced by market expectations and psychological factors, rather than a shortage of foreign exchange resources. The Central Bank plans to inject $2 billion in foreign exchange, with an initial phase of $1 billion, and will continue to intervene based on market conditions. Hemmati also stated that the Central Bank will continue to meet residents' foreign exchange needs through the formal market, emphasizing that the intervention objective is to stabilize the exchange rate and prevent political uncertainty from escalating into long-term economic imbalances.
