Iran’s judiciary on Monday denied reports that the country’s top political leaders had approved the retention of the central bank governor, pushing back against swirling speculation over his fate as the rial slides to record lows and economic pressure mounts.
In a statement carried by state media, the judiciary’s media center said reports that a decision by the heads of Iran’s three branches of power had endorsed the continuation of Mohammad Reza Farzin as central bank governor were “not true.”
“No decision was taken in the meeting of the heads of powers regarding the retention of the central bank governor,” the statement said, adding that the matter falls within the authority of President Masoud Pezeshkian.
The denial follows two days of conflicting reports in Iranian media over whether Farzin had resigned, been dismissed, or would remain in office.
Some outlets reported that Farzin had submitted his resignation earlier in December and that a committee had begun reviewing candidates to replace him, while others said he had been kept on with the backing of senior political leaders.
Later on Monday, the president’s office confirmed that Farzin had submitted his resignation, but said it had not yet been approved by the president.
The judiciary’s clarification came as Iran grapples with a sharp deterioration in economic conditions, marked by a steep fall in the rial and accelerating inflation.
On Monday, the US dollar traded about 1.41 million rials on the open market, while gold prices also hit record highs, prompting protests and strikes by shopkeepers in parts of Tehran.
Farzin, who was appointed under former president Ebrahim Raisi and retained after Pezeshkian took office, has faced growing criticism from lawmakers over currency instability and the central bank’s handling of foreign exchange shortages.
Reports of tension between Farzin and members of parliament surfaced earlier this month during a closed-door session ahead of the government’s submission of its draft budget, with some media saying the governor offered no new solutions to curb currency volatility.
President Pezeshkian has acknowledged the strain caused by energy subsidies and foreign exchange pressures, but has said the government lacks the resources to shield households fully from inflation.
