Tehran - Iran's Central Bank Chief Tahmasseb Mazaheri has resigned and is to soon be replaced by the bank's general secretary Mahmoud Bahmani, Fars news agency reported Saturday.

Mazaheri, who declined to comment on the report but did not deny it, is said to have had grave differences with President Mahmoud Ahmadinejad over economic policies, and observers had considered him as the most likely next official to leave Ahmadinejad's administration.