Iranian Parliament Demands Accountability Over Central Bank's $2 Billion Foreign Exchange Scheme

Iran’s parliament has demanded explanations from the government after the Central Bank of Iran introduced a controversial foreign exchange policy without legislative consultation. The measure authorizes the allocation of up to $10,000 to citizens aged 18 and older, injecting an estimated $2 billion into the retail market. Hamidreza Haji-Babai, the first deputy speaker of parliament, stated that the legislature was left completely uninformed about the policy prior to its announcement.

Speaking to Mehr News Agency, Haji-Babai warned of negative sentiment across the parliamentary floor regarding the initiative. Lawmakers have expressed deep concerns that the measure amounts to an uncontrolled injection of foreign currency reserves, often criticized domestically as 'currency squandering.' Haji-Babai noted, 'It is necessary for the government to explain this action, present its logical justification, and clarify the impact it will have on the country's economy,' stressing that parliament is awaiting clear arguments from monetary authorities.

Iran's foreign exchange market has faced recurring volatility under the weight of international sanctions, domestic inflation, and structural macroeconomic pressures. The Central Bank of Iran has periodically deployed direct retail dollar allocations to appease retail demand and narrow the gap between official and free-market exchange rates. However, critics argue that such market interventions drain finite foreign currency reserves without addressing root inflation drivers, while fueling speculative arbitrage and middleman activities.

In response to mounting legislative scrutiny, parliament plans to convene a formal oversight session in the coming days. Senior central bank officials and government representatives will be summoned to justify the policy’s economic rationale and detail mitigation strategies against potential market shocks. Haji-Babai affirmed that parliament will thoroughly investigate the decision and hold executive authorities accountable to safeguard the nation's financial stability.