Iran Appoints New Central Bank Governor Amid Currency Crisis

Iran Names New Central Bank Governor Amid Deepening Economic Crisis

Iran has appointed a new central bank governor as intensifying economic pressure and a steep currency collapse triggered widespread public protests. The leadership change comes against the backdrop of soaring inflation, rising food prices, and sharp depreciation of the Iranian rial, which has eroded household purchasing power and fuelled nationwide discontent.

New Appointment at the Central Bank

The Cabinet of President Masoud Pezeshkian has appointed Abdolnasser Hemmati as the new governor of the Central Bank of the Islamic Republic of Iran . The decision was confirmed by Iran’s official news agency IRNA. Hemmati replaces Mohammad Reza Farzin , who resigned amid escalating unrest and mounting criticism over monetary management.

Currency Collapse and Inflationary Pressure

The appointment follows a historic fall in the Iranian rial, which traded near 1.38 million rials per US dollar this week—down sharply from around 430,000 when Farzin took office in 2022. Inflation, estimated at close to 40 per cent, has pushed up the cost of food, fuel, and daily essentials. Long-standing Western sanctions linked to Iran’s nuclear programme have further constrained trade, investment, and access to foreign currency.

Protests Spread Beyond Major Cities

Economic protests first erupted in Tehran , where traders and shopkeepers shut down markets. While demonstrations in the capital were largely contained, unrest spread to smaller towns and rural areas. Fatalities were reported in four cities, particularly in regions with sizeable Lur ethnic populations, highlighting the widening social impact of the downturn.

Rising International Tensions

The unrest has also sharpened diplomatic tensions. US President Donald Trump warned of possible intervention if peaceful protesters were harmed. Iranian officials rejected the warning, while senior leader Ali Larijani accused the US and Israel of fomenting instability, cautioning that foreign interference could destabilise the wider region.

Important Facts for Exams

• The Iranian rial hit historic lows against the US dollar in 2025–26.

• Iran faces high inflation amid prolonged Western sanctions.

• The Central Bank of Iran manages monetary policy and currency regulation.

• Economic protests have recurred since the Mahsa Amini unrest in 2022.