Central Bank Governor's Speech in Parliament Escalates Tensions

Valiollah Seif, the Governor of the Central Bank of Iran, appeared in the parliament on Tuesday, April 21, to explain the reasons behind the sharp increase in currency rates. He was met with hostility from several representatives demanding his resignation. Images published by Iranian websites, including Khabar Online, show around twenty parliament members storming the speaker's podium, preventing Seif from delivering his speech. The price of the US dollar began a rapid rise during the Nowruz holidays and ultimately surpassed six thousand tomans on April 20, prompting the government of Hassan Rouhani to consider alternative measures. Accordingly, the Iranian government has ordered that the dollar be offered at a rate of 4200 tomans, emphasizing that any amount above this would be considered smuggling. In his statements on Tuesday, Seif attributed the severe increase in the dollar price in the Iranian market to 'uncertainty about the future.' However, several conservative representatives called for his resignation, including Amir Khejasteh, the representative from Hamadan, who obstructed Seif's speech. Khejasteh told Khabar Online that his and other protesting representatives' actions were meant to convey the public's sentiment towards the Central Bank Governor, who they believe has abandoned his responsibilities. He stated, 'We said, sir, you should leave! Why did you come? You came before and spoke, but you did not act. Aren't you responsible for the Central Bank? Isn't the currency under your supervision? How did the currency become so unregulated and reach this price in the market without any reaction from you?' Khejasteh added, 'People are worried. They are angry... Members of parliament are also under pressure from the public. People are asking what kind of parliament this is that has no effect, what kind of parliament cannot use its supervisory power to address this disorder in the currency market.' Khabar Online also reported statements from Ahmad Azadi-Khah, a representative from Malayer, who said it is time for President Hassan Rouhani to come to the parliament instead of Valiollah Seif for explanations. He mentioned, 'As soon as he [Seif] was invited to speak, I and other protesting representatives went to the podium to prevent him from speaking. Given these problems, it is time for the President himself to come and explain to the representatives, or at least his first deputy should explain. If Mr. Seif had the capability, the situation would not have reached this point. His explanations actually proved our point.' In February, Valiollah Seif advised the public not to buy dollars as they would become cheaper, warning that dollar buyers would incur losses; however, this did not prevent a rush to the currency market and long lines for purchasing dollars. Some analysts consider the potential U.S. exit from the nuclear agreement as a significant factor in the sharp increase in the dollar price, as it could pave the way for the reinstatement of sanctions that Washington had suspended following the nuclear agreement in July 2015.