Iranian President Masoud Pezeshkian has decided to reappoint Abdolnasser Hemmati as Central Bank of Iran governor, Mehdi Tabatabaei, deputy for communications and information of the presidential office, stated on December 29.

"With the opinion and decision of the president, Abdolnasser Hemmati will become the governor of the Central Bank," Tabatabaei wrote on social media platform X, Entekhab reported on December 29.

The appointment follows earlier denials of resignation reports regarding current governor Mohammad Reza Farzin, with the issue having been raised in late November but repeatedly denied minutes before the announcement.

The CBI stated on December 29 that no fresh developments had occurred regarding Farzin's position, and published articles on its media page saying he was leading the charge in tackling the depreciating rial.

Hemmati previously served as Central Bank governor from July 2018 to August 2021, navigating the institution through maximum pressure US sanctions and sharp currency depreciation. He ran unsuccessfully for president in 2021, but was widely regarded as a safe pair of hands.

The announcement comes as Iran faces currency pressures, with the rial trading at approximately IRR1.378mn per US dollar, prompting protests in Tehran, which initially kicked off at two neighbouring mobile phone bazaars on Hafez Street before spreading to other areas of the urban core of Tehran.

Prior to Farzin's departure, the Iranian government's economic team held coordination meetings at the Central Bank on December 29 to discuss foreign exchange, trade and livelihood policies.

Mostafa Qamari Vafa, director general of the Central Bank's public relations department, stated on December 24 that the economic team was meeting with Farzin and economic ministers, with results to be summarised and announced by the government.

The Central Bank governor position carries responsibility for monetary policy management amid currency volatility and inflation concerns affecting Iranian households.