Economy, Business And Markets

How to Overcome Forex Crisis

The forex policy currently devised by the government is opportune for rent-seeking and has muddled Iran’s economy
How to Overcome Forex Crisis How to Overcome Forex Crisis
To offset the inflationary effect of foreign currency for low-income households, the subsidy system needs to undergo radical reforms

Given the key parameters of Iranian economy, inflation rates of above 20% are not improbable for the current fiscal year (March 2018-19), Iranian economist and university lecturer, Vahid Shaqaqi-Shahri, said.
A translation of excerpts of his interview with the Persian daily Shargh follows:
Over the past six months, the value of US dollar against the Iranian rial increased from 40,000 rials in December 2017 to 70,000 rials in June 2018 which led to an 80% decline in the value of local currency.  As the foreign currency rate increases, prices in other markets, particularly those dominated by unproductive, speculative businesses, including gold coin, automobile, housing and the secondary stock market, follow the same direction. 


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