Iran, Islamic Rep. IRN

Executive summary

Iran's credibility score of 71.6/100 reflects an adequate but fragile macroeconomic environment, heavily influenced by ongoing geopolitical tensions and a lack of clear central bank communication. Recent events, including drone strikes on Gulf states and continued military posturing, have exacerbated regional instability and drawn sharp international criticism, with a composite geopolitical risk score of 40.1/100. The absence of policy rate data and central bank statements limits the ability to assess inflation dynamics or monetary policy effectiveness, leaving the central bank's stance largely opaque. Institutional investors should remain cautious, as the combination of geopolitical volatility and weak policy transparency creates significant downside risks to Iran's macroeconomic credibility.

Peer context

Rank 9/9 in Middle East & North Africa · 11th percentile

Region avg 50.4 · best 67.3 · worst 24.8