Can Iran’s economic buffers withstand new US sanctions?
Iran's Central Bank Governor Abdolnaser Hemmati rejected US claims that Iran was heading toward economic collapse, dismissing them as psychological warfare.
TEHRAN—As the US launches a new sanctions campaign against Iran, Tehran is seeking to reassure its people and trading partners that it still has significant economic buffers. The question is whether it can turn those assets into usable economic power.
Addressing a banking conference in Tehran on Tuesday, Iran's Central Bank Governor Abdolnaser Hemmati rejected US claims that Iran was heading toward economic collapse, dismissing them as psychological warfare. "Collapse has never occurred and will never occur," he said, according to Tasnim News Agency.
The remarks, reflecting the central bank’s efforts to contain a self-fulfilling currency panic, also underscore a central question facing Iran: how much further can conditions deteriorate before the state loses its ability to stabilize prices, sustain imports and preserve basic economic activity.
Buffers are real, but finite
