🔺 Suppressing the shortage of foreign currency in Iran and the existing realities

▪ The head of the Central Bank of the Islamic Republic has cited psychological factors as the reason for the fall in the value of the Iranian rial, while denying the shortage of foreign currency in the country. Abdolnasser Hemmati said that a significant part of the current pressure on the currency market is due to an increase in “precautionary, speculative demand and capital flight.”

▪ Although Hemmati has tried to justify the rial’s depreciation with psychological factors, the volume of capital flight from Iran has increased sharply since the U.S. sanctions were imposed in 2019 (1398), and especially after tensions between the sides peaked in the past two years.

▪ According to Central Bank statistics, the balance of the country’s capital account has risen from minus 6.7 billion dollars in 2019 (1398) to minus 19.6 billion dollars in 2025 (1404).