Iran has almost completely stopped exporting oil to foreign markets, Governor of the Central Bank of Iran Abdolnaser Hemmati said on August 19 (Tehran time).
In the current circumstances, oil exports have basically stalled," Mr. Hemmati shared with the press.
The Governor of the Central Bank of Iran said that he believes the planning work of this agency beforehand was correct, thereby helping Iran maintain foreign exchange reserves in the context that oil exports are currently almost interrupted.
In my opinion, the Central Bank's plan is correct, which is why Iran currently has foreign exchange reserves," Mr. Hemmati said.
The statement of the head of the Central Bank of Iran shows that Tehran is relying on foreign exchange reserves to maintain essential economic activities at a time when oil export revenues are seriously affected.
Iran is one of the largest oil producers in the Middle East and oil revenue plays an important role in the country's economy. Therefore, near-freezing oil exports could put significant pressure on Tehran's foreign currency earnings, while placing a requirement to maintain reserves to serve urgent needs.
Mr. Hemmati also said that he had affirmed to Iranian Supreme Leader Mojtaba Khamenei in a letter that people do not need to worry about the supply of essential goods and medicines.
There is no need to worry about the supply of essential goods and medicines, because the Central Bank and the Government are ensuring supply," Mr. Hemmati wrote in the letter.
This statement was made in the context that Iran is facing difficulties in trade and access to international financial resources. In that situation, maintaining foreign exchange reserves is considered an important factor helping Tehran meet the import demand for essential goods, especially medicines and goods serving people's lives.
Previously, Mr. Hemmati also said that Iran is using "alternative solutions" to ensure stable resources and avoid having to issue more money, a measure that could increase inflation.
