Business And Markets

PBO Defends End of Forex Subsidies

The economists who took issue with the government’s economic policies, described it is as “economic surgery” and a “hasty move” especially at a time when the people are grappling with dire economic conditions
PBO Defends End of Forex Subsidies
PBO Defends End of Forex Subsidies

The Plan and Budget Organization (PBO) has defended the government’s decision to end its forex subsidy policy basic imports. 
In a statement released Monday the PBO responded to a group of 61 independent economists who have strongly criticized the government’s economic performance.
On May 10, the government officially put an end to the decades of highly controversial currency subsides ($1= 42,000 rials), better known as preferential currency, which was given to importers of essential goods like food, medicine and some raw materials. 
Along with other oft mentioned reasons for scraping the cheap currency, the PBO highlighted the threat of “high powered money” as a cogent argument that persuaded the Raisi administration to abandon the policy. 


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