Iran says it has sufficient foreign exchange reserves despite US sanctions

Iran’s Central Bank Governor Abdolnasir Hemmati said on September 1 that Iran has sufficient foreign exchange reserves despite U.S. sanctions. The statement came in response to earlier comments by U.S. Treasury Secretary Scott Bessant that Tehran was taking drastic measures because it was losing the economic war.

According to the Tasnim news agency, Hemmati said the central bank was ready to allocate up to $2 billion to address instability in the foreign exchange market. He addressed the U.S. president and stressed that “Iran has foreign exchange and it is sufficient.”

The statement was aimed at alleviating concerns in the markets, as Iranian officials, including President Masoud Pezeshkian, had previously said that the country’s economy was facing increasing difficulties due to U.S. sanctions and a naval blockade.

According to Hemmati, the central bank continues to collect foreign exchange earnings and the country has domestic reserves and other resources. However, he did not disclose the details of these resources.

"I can tell the people with complete impartiality that the economic conditions and livelihoods have become difficult to manage. But collapse has never happened and will never happen. These claims are just psychological warfare and this rumor will spread quickly," Hemmati said.

In August, Iran's currency depreciated to a record low of 2 million rials against the US dollar. In July, annual inflation reached 66 percent.

On August 31, US Treasury Secretary Scott Bessent said that Iran was taking US sanctions seriously, saying, "They are responding with military action because they are losing economically."

Washington is ramping up economic pressure on Tehran to force it to comply with its demands. Bessent warned that individuals and companies doing business with Iran could also face US sanctions.

Meanwhile, US President Trump has called Iran "officially a failed state." He has said Tehran's leadership is incapable of governing the country and has lost its military might, even claiming it is not paying its military and police.