Iran's Central Bank sells $27 billion in 6 months

Photo: Iran's Central Bank sells $27 billion in 6 months / Economy news

Azerbaijan, Baku, Oct. 11 /Trend S.Isayev, T. Jafarov/

Iran's Central Bank has sold some $27 billion in the first six months of the current Iranian Year (ends on March 20), Mehr reported.

Head of Iran's Chamber of Commerce Industries and Mines (ICCIM), Mohammad Nahavandian said that the CBI's six month sale showcases the volatility of the currency market.

Speaking of Iran's non-oil sector, Nahavandian said that country's non-oil sector is tied to the oil.

He added that the non-oil export includes 10 issues, 7 of which are directly connected to the oil exports, and this indeed needs to be changed.

Nahavandian said that the liquidity growth is the man inreason for inflation in the country, adding that previous forecasts warned about this happening, because of the subsidy reform plan.

The implementation of the subsidy reform plan began in December 2010. At the time, President Mahmoud Ahmadinejad called it the "biggest economic plan of the past 50 years."

It allows the government to gradually slash subsidies on fuel, electricity, and certain goods over the course of five years, with low-income families being compensated with direct cash handouts.

On May 5, the Majlis Integration Committee rejected the administration's proposal to increase revenues from subsidy cuts, a move which could have effectively blocked the implementation of the second stage of the subsidy reform plan in the current Iranian calendar year.

The Ahmadinejad administration presented the draft of the national budget bill for Iranian calendar year 1391 to the Majlis on February 1, in which it was proposed that the revenues from subsidy elimination savings would be increased from about $44 billion to $110 billion.

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