Iran's president meets central bank amid currency crisis and new US sanctions

Iranian President Masoud Pezeshkian convened a three-hour meeting at the central bank to tackle critical economic issues, including the foreign exchange market, liquidity, and inflation. This gathering took place just two days after the national currency, the rial, plummeted to a record low and the United States announced an intensified campaign to "choke" Iran's economy.

During the meeting, Pezeshkian emphasized the necessity of maintaining economic stability and controlling inflation, especially amidst ongoing conflict, economic blockades, and external pressures. He called for seamless coordination between the central bank and all entities responsible for managing the nation's financial and currency markets, as reported by the state news agency ISNA.

The president reviewed detailed reports on liquidity levels, the foreign exchange market's performance, the international balance of payments, and the effectiveness of current monetary policies. He also discussed future measures designed to guide the economy through and beyond the current period of conflict. Pezeshkian advocated for continuous engagement with economic experts and the incorporation of their proposals into the formulation of monetary, fiscal, banking, trade, and corporate management strategies.

Furthermore, Pezeshkian urged officials to communicate Iran's economic challenges directly and transparently to the public. The meeting followed a new package of US sanctions targeting approximately 60 individuals, entities, and vessels, alongside an expansion of secondary sanctions risks across digital assets, technology, gold, aviation, and shipping sectors. US Treasury Secretary Scott Bessent stated Washington's aim to sever "every economic lifeline" supporting the Iranian government.

In response, President Pezeshkian asserted that Tehran would persist in resisting economic pressure, drawing a parallel to the perceived failure of US objectives in the ongoing war. He expressed confidence that similar economic pressure tactics would also prove unsuccessful. The currency's pressure coincided with disruptions in the fuel market, where fuel stations in Tehran experienced long queues after authorities reduced fuel quotas and increased prices for purchases exceeding allocated amounts.