Ali Reza Nobari, the Central Bank governor, has submitted his resignation to President Abolhassan Bani-Sadr, who appointed the California- educated official last year. Finance Minister Hussein Namazi named his deputy, Mohsen Nourbakhsh, as Mr. Nobari's replacement.
Mr. Nobari played a major role in negotiating the release of the US hostages. He has sharply criticized Iran's plans to balance this year's budget by boosting oil exports at a time of moderating prices and an international oil glut. His criticism had made him a target of attacks by Prime Minister Muhammad Ali Rajai, who said he was out of step with the policies of the clergy-dominated government.
Mr. Nobari's resignation is another blow to Mr. Bani-Sadr, whose increasing isolation by the government and a clampdown on his daily newspaper have provoked violent clashes in the streets this week.
Meanwhile, a revolutionary Islamic court sentenced former Deputy Prime Minister Abbas Amir Entezam to life imprisonment. Mr. Entezam was found guilty of having collaborated with the United States and the Central Intelligence Agency. He was deputy prime minister in Iran's first postrevolutionary government, headed by former Prime Minister Mehdi Bazargan, which resigned a few days after Muslim students occupied the US Embassy. His indictment, which also included waging "war against Islam," was base d on documents found at the US compound.