With the Iranian rial at a record low and domestic inflation at 66%, the Central Bank of Iran plans to inject $2 billion to rescue its foreign exchange reserves, with the governor stating that there is sufficient foreign exchange.

With the Iranian rial at a record low and domestic inflation at 66%, the Central Bank of Iran plans to inject $2 billion to rescue its foreign exchange reserves, with the governor stating that there is sufficient foreign exchange.

The Iranian rial fell below its historic low of 2 million rials to the US dollar in August, while the country's annualized inflation rate rose to 66% in July. Faced with the dual pressures of currency depreciation and runaway prices, the Central Bank of Iran is preparing to inject up to $2 billion into the foreign exchange market to stabilize the currency's volatility.

Iranian central bank governor Abdolnaser Hemmati said on Tuesday that Tehran has ample foreign exchange reserves and the central bank is prepared to inject up to $2 billion into the foreign exchange market to calm the recent sharp fluctuations in the rial.

This statement comes as the rial fell below the psychological threshold of 2 million rials to the US dollar in August and the annual inflation rate hit 66% in July. Reuters noted that the governor's remarks "seemed partly aimed at calming the market" after Iranian President Masoud Pezeshkian and other officials repeatedly mentioned the growing difficulties facing the Iranian economy.

Alongside the central bank's market rescue efforts, the United States continues to escalate economic pressure. US Treasury Secretary Bessenter warned that countries doing business with Iran could face US sanctions, with secondary sanctions "potentially rolled out weekly," initially targeting banks. This conflict, which has lasted for six months, is increasingly unfolding through sanctions, blockades, and economic pressure.

The riyal fell below 2 million, while inflation rose to 66%.

The Iranian rial has been under pressure to depreciate for several months. In August, the rial fell to a record low against the US dollar, breaking the psychological barrier of 2 million rials to one dollar; the annual inflation rate rose to 66% in July.

Iranian officials, including President Pezzichian, have recently pointed out on several occasions the growing difficulties facing the Iranian economy.

This situation comes against the backdrop of the US-Iran conflict turning into an economic standoff. The memorandum of understanding (MOU) signed by the two sides in June announced the end of hostilities, but it quickly collapsed, and the subsequent 60-day negotiation period has passed without any further agreement.

The report suggests that Washington is increasingly relying on economic pressure to force Tehran to stop blocking the Strait of Hormuz and end the conflict.

The governor of the Central Bank of Iran called the theory of Iran's collapse a psychological war.

Faced with currency depreciation and runaway inflation, the Central Bank of Iran has chosen to intervene directly. Governor Abdolnaser Hemmati stated on Tuesday that Tehran has ample foreign exchange reserves; according to the semi-official media outlet Tasnim, citing his statement, the central bank is prepared to inject up to $2 billion into the foreign exchange market to quell recent volatility.

Hemmati also made a rare direct statement to the US: "I tell the US president: Iran has foreign exchange, and enough of it."

Hemmati stated that the Central Bank of Iran is continuously recovering foreign exchange receivables and possesses domestic reserves and other resources, though he did not disclose specific details about these resources.

Hemmati said, "I am completely honest with the people. The economic situation and the management of people's livelihoods have indeed become difficult, but the country has never collapsed and will never collapse. These arguments are nothing but psychological warfare, and everything will soon settle down."

Media commentators noted that this statement "seemed partly aimed at calming the markets" after Iranian officials repeatedly emphasized their economic difficulties.

Firefights and sanctions are proceeding simultaneously, with clear differences in statements from all sides.

The central bank's market rescue measures are proceeding simultaneously with the military and economic struggle between the US and Iran.

Iranian President Peskhziyan stated clearly at the Shanghai Cooperation Organisation (SCO) summit in Bishkek, Kyrgyzstan: "If the United States returns to its commitments under the memorandum of understanding, Iran will respond immediately in kind." He also said on Monday that war is not in the interest of either side and that Tehran remains open to a negotiated solution.

However, a source at the highest level in Iran told the media that the exchange of fire was a "limited and controlled standoff," but also indicated that Tehran would respond sternly should it be attacked again. On the US side, Trump told Fox News, "We're going to hit them hard... there will be a response," and later told reporters that the recent strikes did not mean a return to full-scale war.

The oil market remains sensitive to the situation. On Monday night, two very large crude carriers (VLCCs) carrying Saudi crude oil were struck by unidentified projectiles as they left the Strait of Hormuz; Brent crude futures rose another 1.3% on Tuesday. PVM analyst John Evans commented that the tit-for-tat missile exchanges between the US and Iran confirm the assessment that "even if it is not a 'perpetual war,' this conflict will be protracted."

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