Is changing the head of the central bank enough to save Iran's economy?|Economy |Al-Jazeera Net

A change in the leadership of Iran's central bank may calm the markets temporarily, but not enough to save an economy burdened by inflation, sanctions and structural imbalances that exceed the limits of monetary policy.

Is changing the head of the central bank enough to save Iran's economy?

In light of the continued decline of the Iranian rial and high levels of inflation, Iranian authorities have appointed Abdel Nasser Hemmati as the new Governor of the Central Bank of Iran.This comes in the context of an extremely sensitive economic situation that the country is experiencing as pressure on living standards increases, market unrest increases and protests begin in the bazaar of the capital, Tehran.

In his first statement after taking office,Hemmati, considering the central bank's most important task to control inflation, vowed to tackle imbalances in the banking system tightly, stressing that citizens would notice signs of a return to economic stability in the coming days.

The Iranian Rial foreign exchange market

The new head of the central bank of Iran linked the crisis in the foreign exchange market, especially the different exchange rates, rents, corruption and speculation, saying that these factors have undermined the confidence in the country's currency and hastened the decline.

Hemmadi explained that the central bank is moving to gradually abolish the preferential currency and stabilize the exchange rate within the framework of a plan to reduce the gap between the official rate and the free market rate, reduce opportunities for speculation, and help restore monetary stability.

He emphasized on the bank's support to the securities market and the stock market as a means of regulating the liquidity flow and reducing the pressure on the foreign exchange market.

Hanmarty said that he would also discuss relations with the parliament with the representatives, but he emphasized that the management of economic affairs must be based on economic principles and business experience that consider the country's conditions, and must be managed only politically.

What will happen after the change in leadership of the Central Bank of Iran?

After these trends were published, a fundamental question arose as to what extent a change in the leadership of the central bank could bring about a real change in the path of the economy, in the face of mounting internal complications and constant external pressure.

In this context, economics professor Peyman Mawlawi believes that changing the head of the central bank "cannot in itself be a solution to Iran's economic crisis", and explains that the existing problems will not necessarily change with a change in the head of the monetary administration.

Speaking to Al Jazeera Net, Mawlawi pointed out that any tangible improvement is related to addressing two basic parameters:

The first is that Iran ranks low on the Index of Economic Freedom because the country is at the bottom of the world, which limits the possibility of positive results in other sectors.

The second indicator concerns the security and transparency of property rights, especially free currency

Maulvi says that improving the ranking of economic freedom is a fundamental condition for economic success, which is related to several factors, including the extent of state intervention, currency strength, monetary policies, laws and regulations, protection of property and freedom of foreign trade.

Sharp changes in the exchange rate of the Iranian Rial

The talks come at a time when Iranian markets are witnessing rapid changes in exchange rates, reflecting market volatility and the planning ability of traders and producers, and limited protests in some sectors.

Economic forecasts indicate that a decline in foreign reserves and a shortage of public assets have contributed to a reduction in the supply of hard currency, adding pressure to the Iranian Rial.

Economics professor Morteza Afqeh said Iran's ongoing economic changes were "natural and expected" after years of tightened sanctions and dwindling foreign exchange reserves, as well as dwindling government resources.

Enseek said al Jazera net, the cause of the problem is not just the price of the price, please describe the price, please explain a piece of background.

Ufaqa believes that the replacement of the central bank governor will not lead to tangible changes in the status quo and points out that the potential impact will remain limited unless broader factors are addressed, particularly sanctions, resource shortages and ongoing tensions, casting a heavy shadow on the economy and investments.

As Abdel Nasser Hamati takes office, Iranian markets await the practical steps the Central Bank will take to see if the announced policies will reflect a tangible improvement in the stability of the rial and the price level at a time when the economic crisis is still linked to factors other than monetary policies.

The latest official data indicate strong inflationary pressures on the Iranian economy, with annual inflation reaching 42.2% at the end of December 2025 compared to the previous year, and monetary inflation rising (between December 2024 and December 2025) to around 52.6%, according to the Iranian Statistics Center.

As for exchange rates, the Iranian rial has hit an all-time low against the US dollar, with the open market price trading near 1.44 million rials to the dollar at the end of December 2025, according to the Iranian Market Exchange Board.

In a development related to the economic crisis, Iranian President Massoud Pezeshkian called on the government to listen to the protesters' "legitimate demands" and communicate with their representatives through dialogue in an effort to overcome the problems of rising prices and the fall of the national currency, the "IRNA" news agency reported.

Pezheshkian emphasized that the government can take new decisions to improve the economic situation according to what he described as a "critical situation", which he calls unity instead of protest. He also emphasized that measures to improve the financial and banking system are included in the government's program in order to control the deterioration of financial conditions.