Head of Iran’s Central Bank resigns amid demonstrations in Tehran

The head of the Central Bank of Iran, Mohammad Reza Farzin, resigned due to the fall in the value of the Iranian rial and amid demonstrations in Tehran against inflation and declining living standards. Traders became the driving force behind the demonstrations.

On December 28, the national currency exchange rate fell to 1,445,000 rials per dollar. In 2022, when Farzin took office, it was 430,000 rials per dollar. Inflation since the beginning of the year was, according to official data, 52%, and the cost of food increased by two-thirds.

His successor was Abdolnasser Hemati, who headed the Central Bank in 2018-2021. Let us recall that in 2018, US President Donald Trump announced his withdrawal from the agreement on the Iranian nuclear program and a significant tightening of the sanctions regime.

We would like to add that the first reports about Farzin’s possible resignation appeared back in November, but the authorities denied them over and over again. The head of the Central Bank is responsible for monetary policy, but it is difficult to expect that he will be able to curb inflation caused by mismanagement and sanctions.