The governor of Iran's central bank denied allegations of an economic collapse at an International Monetary Fund meeting in Bangkok on Wednesday. This statement comes as Tehran faces a US naval blockade designed to drive its oil exports to zero and limit its financial interactions with the global economy.
Read More
In July, the US reinstated its blockade of Iranian ports and initiated "Operation Economic Outcast" on August 24, targeting Iran's economic ties. According to Vortexa, an energy intelligence platform, Iran's seaborne crude exports fell to zero in the second week of September from an average of 230,000 barrels per day at the start of the month, and remained there as of October 5.
The US campaign also affected Iranian airlines, further isolating the country and increasing the costs of international connections. Correspondingly, the value of the Iranian rial has sharply declined, losing nearly 35% against the US dollar since July, according to Iranian currency tracker Bonbast.
At the meeting, the central bank governor emphasized that the institution's priorities are to curb inflation, stabilize inflation expectations, maintain financial stability, and ensure banking and payment services. As of September, annual inflation had reached 73.6%, according to the Statistical Center of Iran. In response, the central bank launched a plan in late September to sell up to $2 billion through state banks to support the rial.