CBI Blames Forex Subsidies for Ballooning Money Supply

Government policy of giving billions in subsidized currency for importing basic goods must be blamed for the exploding monetary base and rampant inflation, a senior official at the Central Bank of Iran said. 
Reiterating that the long prevailing multiple exchange rates have been a bane of the economy, Payman Qorbani, the CBI deputy for economic affairs singled out the inherent flaws in the decades of forex subsidies allocated for basic imports. 
Following the steep rise in forex rates, the former government in 2018 embarked on a new policy to subsidize currency for import of food and medicine pegging the US dollar at fixed rate of 42,000 rials. The rate was and still is less than a seventh of the prices in the open market.