Iran’s central bank chief resigns

DUBAI: Iran’s central bank chief, Mohammad Reza Farzin, has resigned, the semi-official Nournews agency reported on Monday, citing an official at the president’s office, as the country battles a slump in its riyal currency and high inflation.

The riyal, which has been falling as the Iranian economy has suffered from the impact of Western sanctions, fell to a new record low on Monday at around 1,390,000 to the dollar, according to websites displaying open market rates.

Iranian media outlets reported there had been demonstrations in the capital Tehran, mainly by shop owners, against the economic situation.

Farzin has headed the central bank since December 2022. His resignation will be reviewed by President Masoud Pezeshkian, the official added, according to Nournews.

Mehr news agency, another semi-official agency, quoted the head of public relations at the central bank as saying Farzin had taken part in meetings at the bank and that “there were no new developments” regarding his resignation.

Iranian media have said the government’s recent economic liberalisation policies have put pressure on the open-rate currency market.

The open-rate market is where ordinary Iranians buy foreign currency, whereas businesses typically use state-regulated rates. The reimposition of US sanctions in 2018 during President Donald Trump’s first term have harmed Iran’s economy by limiting its oil exports and access to foreign currency.