Banking Strategies to Neutralize Inflationary Shocks Arising from Sanctions

Abstract

International sanctions have imposed significant inflationary pressures on Iran's economy through various mechanisms, including reduction of foreign exchange revenues, disruption of foreign trade, and restricted access to global payment systems. This study aims to elucidate the banking system's strategies for mitigating the inflationary effects of sanctions. Employing a descriptive-analytical research method and reviewing library resources, this article analyzes operational measures that banks can adopt to counteract the inflationary impacts of sanctions. Findings indicate that although sanctions have exacerbated inflation in Iran's economy through multiple channels, appropriate banking strategies—including liquidity management, revision of credit policies, and deployment of innovative financial instruments—can effectively mitigate these effects. This article presents practical solutions for enhancing the banking system's performance under sanctions.