New CBI chief vows to scrap multi-tier exchange rate
Abdolnaser Hemmati on Wednesday officially assumed office as governor of the Central Bank of Iran (CBI) for a second time, pledging to restore economic stability and tackle corruption linked to Iran’s multiple exchange rate system.
“We will dismantle the system of corruption and rent-seeking caused by the multi-tier exchange rate.” Hemmati told reporters in his first remarks following a cabinet meeting in Tehran, according to IRNA.
He said the layered exchange rate system, along with rent-seeking, corruption, and speculative activity, was one of the primary drivers of volatility in Iran’s currency market, vowing firmly to put this situation in order.
Hemmati added that his goal was to unify the currency market. “We will gradually remove the preferential exchange rate and make the currency single-rate.”
The preferential exchange rate in Iran is a government-set currency rate which is much lower than the free-market rate and is used to import essential goods like food and medicine with the aim of shielding consumers from inflation.
The new CBI chief said this rate had depleted the CBI’s reserves, while consumers ultimately paid for goods at free-market prices despite the official subsidies.
Hemmati was selected to replace former CBI chief Mohammad Reza Farzin, following a surge in US dollar exchange rates and rising prices that fueled public discontent.
Government spokeswoman Fatemeh Mohajerani said he had been selected “with the highest score” from a list of candidates reviewed by a group of banking experts, adding that his appointment was formally approved by the cabinet on Wednesday.
Mohajerani said curbing inflation, stabilizing the exchange rate and managing imbalances in the banking system were the three main priorities of the new central bank chief.
Farzin had been appointed under former president Ebrahim Raisi and remained in office after President Masoud Pezeshkian took power in August 2024. He was appointed economy minister in President Pezeshkian’s government but was impeached and dismissed by Parliament on March 2, following criticism over rising inflation, currency depreciation, and food price hikes.
His appointment has drawn criticism, particularly from some lawmakers who led his impeachment in March 2025. they argue the selection signals no real change in the government’s economic team.
Hemmati is an associate professor at the University of Tehran and has worked in senior government economic roles for nearly four decades. He previously served as head of the CBI from July 2018 to May 2021.