CBI Draws Attention to Key Economic Issues

On the anniversary marking the US economic sanctions on November 4, 2018, governor of the Central Bank of Iran said the hostile restrictions and “maximum pressure” of the United States government failed to produce what the Trump White House desired, expected and worked for tirelessly.

Pointing to currency rates as an important indicator, Abdolnasser Hemmati took to Instagram on Monday and said that since the announcement of the new unilateral sanctions by US President Donald Trump, the national currency regained 21% of its lost value.

“The currency rate, which the Americans themselves branded as the most important indicator of the pressure tactic, fell from 143,500 rials to the dollar on Nov 4, 2018 [beginning of new penalties] to 113,000 rials on Nov 4, 2019,” he wrote.

He added that the inflation spillover from volatility in the forex rates and disruptions in the foreign trade have burdened Iran’s economy with unprecedented pressure largely on low income groups.

“Finally, a relative stability has returned to the economy and major economic indicators such as the inflation rate and non-oil exports are improving.”

Outlining the focus of efforts following the abatement of effects of the US pressures, Hemmati said the country now needs to concentrate on:

- growth in gross fixed capital formation

- promoting domestic manufactures

- reducing dependence on oil revenues

- immunizing the economy from volatility in crude oil revenues

- accelerating reforms of the banking sector.