Iran’s policy of allocating subsidized currency fails: CBI

Economy Materials 10 March 2019 13:31 (UTC +04:00)

Tehran, Iran, March 10


Governor of the Central Bank of Iran Abdol Nasser Hemmati admitted that the policy of Rouhani government to allocate subsidized currency to the import of essential goods has failed, Trend reports.

Hemmati wrote on Instagram that this policy didn’t reach the goal of stabilizing prices and accelerated corruption.

He pointed out that a policy change may be forthcoming.

“The sanctions has the most negative impact on the low-income class of society,” he said. “Therefore, it is natural that the main discussions between the government and the CBI are focused on providing essential goods and medicine.”

Hemmati noted that obstacles to the operation of the allocation system have caused the disadvantages to gradually become apparent in spite of the positive initial impact of the allocation of the currency in official rate (42,000 rial per dollar) for the import of essential commodities.

“In fact, the allocation of the preferential currency for the import of basic commodities due to the nature of the market and the weakness of the distribution and monitoring system have not been able to prevent the raising in prices of those commodities in the medium term,” said Hemmati.