Iran's central bank governor dismisses US claims of economic collapse
SPY•Iran's central bank governor dismissed US claims that the economy is collapsing as Iranian crude exports fell to zero in September and the rial lost nearly 35% of its value against the dollar since July. Annual inflation reached 73.6% in September.
1. Exports and currency fall
Iranian central bank governor Hemmati called US claims of an economic collapse an illusion at an IMF meeting in Bangkok. Iran’s seaborne crude exports fell to zero in the second week of September from a 14-day average of 230,000 barrels per day at the start of the month, and remained there as of October 5. The rial has lost nearly 35% against the dollar since July.
2. Inflation and support measures
Annual inflation reached 73.6% in September. Hemmati said the central bank was prioritising curbing inflation, stabilising inflation expectations, preserving financial stability and maintaining banking and payment services, while securing foreign currency for medicine and essential goods. In late September, the bank launched a programme to sell up to $2 billion through state banks to support the rial.
3. US blockade campaign
Washington reinstated its blockade of Iranian ports in July and launched “Operation Economic Outcast” on August 24, aiming to sever Iran’s remaining financial and commercial links with the global economy. In September, the US expanded the campaign to target Iranian airlines.
