‘No such requirement ‘: Iran’s Central Bank Chief contradicts Trump on use of frozen funds

The governor of Tehran's central bank has contradicted President Donald Trump's declaration that Iran is obliged to spend its released frozen funds on American exports, stating that there is "no such requirement" in the signed memoranda.

The governor of Tehran’s central bank has contradicted President Donald Trump’s declaration that Iran is obliged to spend its released frozen funds on American exports, stating that there is “no such requirement” in the signed memoranda.

Abdolnaser Hemmati, in a video message, confirmed that the initial $12 billion released to Tehran was to be used to buy “essential goods and medicine,” adding that this would free Iran to spend its regular funds on whatever it wants. His remarks directly push back against Trump’s assertion that the money must be spent exclusively on US agricultural products.

Trump had stated on Tuesday that Iran’s money would be “used for the purchase of food and medical supplies, exclusively from the United States, including corn, wheat, and soybeans from our great American farmers.” The President’s comments were seen as an effort to tout the economic benefits of the agreement for American farmers, framing the deal as a win for US agriculture.

However, Hemmati rejected that interpretation. “That is not true. There is no such requirement in the memoranda that were signed during the negotiations,” he reassured his fellow Iranians. The central bank chief’s statement reflects Tehran’s determination to maintain its economic independence and avoid what it views as excessive dependence on the United States.

The disagreement over the terms of the fund’s use highlights the broader challenges of implementing the memorandum of understanding. While the agreement has de-escalated tensions and opened pathways for economic relief, the specifics of how funds are to be utilized remain a point of contention between the two sides.

The $12 billion release represents a significant economic lifeline for Iran, whose economy has been severely impacted by years of sanctions and the costs of the recent war. The ability to use these funds for essential imports, including food and medicine, is critical for addressing domestic shortages and stabilizing the currency.

Iran’s insistence that it will decide how to spend its funds reflects its broader negotiating strategy of asserting sovereignty while engaging with Washington. For its part, the Trump administration has emphasized the economic benefits of the deal for American workers and farmers. The competing narratives suggest that while the MoU has been signed, the battle over its interpretation is far from over. As the 60-day negotiating period continues, both sides will need to resolve these differences to ensure the agreement’s full implementation.