Iran Appoints New Central Bank Chief Amid Economic Protests

Iran has appointed a new central bank governor as mounting economic pressure and a sharp currency collapse triggered widespread protests across the country. The leadership change comes amid public anger over soaring prices, inflation, and the rapid depreciation of the Iranian rial against the US dollar.

New Appointment at the Central Bank

President Masoud Pezeshkian’s Cabinet appointed Abdolnasser Hemmati as the new governor of the Central Bank of the Islamic Republic of Iran. The appointment was confirmed by Iran’s official news agency IRNA. Hemmati, a former economics minister, replaces Mohammad Reza Farzin, who resigned earlier this week amid escalating unrest.

Economic Crisis and Currency Collapse

The leadership change follows a record fall in the Iranian rial, which traded at around 1.38 million rials per US dollar this week, compared with nearly 430,000 when Farzin assumed office in 2022. The rapid depreciation, combined with inflation estimated at around 40 per cent, has sharply increased the cost of food and daily essentials, intensifying pressure on households already affected by Western sanctions over Iran’s nuclear programme.

Protests Spread Beyond Major Cities

Public protests initially erupted in Tehran, where traders and shopkeepers shut businesses and took to the streets. While security forces have largely contained demonstrations in the capital, unrest has spread to rural regions. Fatalities were reported in four cities, primarily in areas with a significant Lur ethnic population, underscoring the widening social impact of the economic downturn.

Imporatnt Facts for Exams

• The Iranian rial has hit historic lows against the US dollar in 2025–26.
• Iran faces high inflation amid long-standing Western sanctions.
• The Central Bank of Iran regulates monetary policy and currency management.
• Economic protests in Iran have recurred since the Mahsa Amini unrest in 2022.

US-Iran Tensions Escalate Over Unrest

The protests have also fuelled diplomatic tensions. US President Donald Trump warned that Washington would intervene if peaceful protesters were killed. Iranian officials rejected the warning, cautioning that foreign interference would destabilise the region. Senior figure Ali Larijani alleged that the US and Israel were fuelling unrest, warning that intervention would have serious regional consequences.