Iran’s Central Bank reappoints Mohammad Reza Farzin as governor, focusing on currency stability and economic resilience. (Photo by Maksim Konstantinov/SOPA Images/LightRocket via Getty Images).
EPICSTORIAN — President Masoud Pezeshkian has reappointed Mohammad Reza Farzin as governor of Iran’s Central Bank (CBI) on October 30, 2024, amidst a period of economic challenges defined by high inflation and global sanctions.
With Iran’s economy under strain, Farzin is tasked with focusing on key economic reforms aimed at stabilising the national currency and improving the financial sector.
In his official decree, President Ebrahim Raisi called on Mohammad Reza Farzin, the reappointed governor, to “work diligently within the framework of the Constitution,” urging alignment with the country’s 20-year Vision Document and policies ratified by Iran’s Supreme Leader.
Iran’s Central Bank to Address Weak Rial
The governor’s mandate to lead Iran’s Central Bank arrives as inflation continues to climb, compounded by a weakened rial and a constrained foreign exchange environment.
The core objectives under his leadership, as Iran moves to Join BRICS’ New Development Bank, are expected to centre on strengthening the banking sector and addressing Iran’s currency devaluation.
According to Iranian law, the president has the authority to replace the Central Bank governor when over a year remains in the incumbent’s five-year term, providing Raisi the opportunity to appoint a figure who aligns with his administration’s goals for economic resilience.
Experts Suggest Farzin will also focus on developing strategies to mitigate the impact of international sanctions, which may involve enhancing Iran’s foreign exchange policies and exploring alternative trade mechanisms to gain greater financial independence in response to ongoing global economic pressures.
“This shift in Central Bank leadership is expected to shape Iran’s economic policies significantly, with Farzin’s role likely to influence both domestic reforms and international financial interactions,” commented an economic analyst familiar with the region.
Observers are closely watching these developments, as Iran’s economic moves could potentially impact global oil demand and regional markets more broadly , even as was recently seen a drop in prices after Israel’s airstrikes on Tehran military.
