Reyhane Hejazi - The announcement was made by Seyed Mehdi Tabatabaei, Deputy for Communications and Information at the Office of the Iranian President, on the social media platform X—bringing to an end several days of speculation about the future direction of Iran’s monetary policy.
The leadership change comes at a time when Iran’s foreign exchange market has been experiencing weeks of intense volatility, marked by a sharp depreciation of the rial and rising inflationary expectations.
Mohammad Reza Farzin, the former central bank governor, stepped down in the midst of one of the most turbulent periods for the currency market, during which the U.S. dollar surged to unprecedented levels of 130,000 to 140,000 tomans (per U.S. dollar). This spike heightened cost-of-living concerns and deepened uncertainty across markets.
As volatility intensified, protests also emerged among some shopkeepers and trade groups. In recent days, a number of merchants—particularly in the mobile phone sector—protested against the sharp rise in exchange rates, citing its direct impact on prices and the declining purchasing power of customers.
These protests are widely seen as a reflection of the growing pressure that currency fluctuations are placing on small and medium-sized businesses, which are directly exposed to sudden price shocks.
Abdolnasser Hemmati is a well-known figure in Iran’s economic policymaking circles. He previously served as governor of the Central Bank from August 2018 to June 2021, a period marked by the U.S. withdrawal from the JCPOA, intensified sanctions, and a sharp rise in exchange rates.
During that time, a series of monetary measures in the early months helped slow the pace of currency depreciation and bring about a degree of relative stability, although the overall performance of that period remains a subject of debate among experts.
In addition to his tenure at the central bank, Hemmati has also served as Minister of Economic Affairs and Finance—a position he held in the current administration until he was removed following a parliamentary impeachment in March 2025.
Supporters view Hemmati’s return as a sign that the government is relying on a manager with practical experience and a deep understanding of the foreign exchange market and the banking system.
Critics, however, argue that Iran’s current economic conditions are more complex than in previous periods and that successful management will require a redefinition of policies and control instruments.
These developments come against the backdrop of regulations approved by Iran’s Expediency Discernment Council, under which the central bank governor is appointed upon the president’s proposal and with a two-thirds vote of the Cabinet—a mechanism designed to increase consensus within the government and reduce hasty decision-making.
Dismissal of the central bank governor is also only possible under specific conditions and through formal Cabinet procedures.
Initial market reactions to the change have been noticeable. Following the announcement of Hemmati’s appointment, prices of foreign currency and gold declined in short-term trading. The U.S. dollar retreated to around 137,000 tomans (per U.S. dollar) in unofficial markets, while gold and coin prices also recorded significant declines.
Field observations indicate that shops and malls around Tehran’s Republic Street—where merchant protests had taken place earlier in the day—have returned to normal operations, with no visible signs of the morning demonstrations.
Most businesses in the area are continuing their activities as usual, and changes in economic management have been met with cautious optimism among the public—particularly as the dollar and gold prices have fallen in an unusually sharp manner over the past few hours.
Hemmati’s return to the central bank headquarters comes at a time when Iran’s economy is grappling with multiple, overlapping challenges—from high inflation and budget deficits to currency instability and external pressures.
In this environment, the role of the central bank in restoring confidence and reducing market volatility is under closer scrutiny than ever by economic actors, business owners, and international observers alike.
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