MP: Increase in USD rate to cause 35 percent inflation rate
Azerbaijan , Baku, June13 /Trend/
The increase in USD exchange rate by the government will intensify the growth rate of inflation up to 35 percent while pumping more dollars will not solve the demands, Fars News Agency quoted a member of the Parliament's Budget Committee Abasali Noura as saying.
"Considering the implementation of cutting the subsidies, if the government does not control the exchange rate, it is predicted to increase the inflation rate up to 35 percent," he said.
If the government does not control the exchange rate, injecting of the exchange into market will not have effect. People should invest their money in economy instead of buying gold and dollar, he added.
The inflation affects the economy and investments in specific regions like Assalouyeh gas field.
The Governor of the Iranian Central Bank and Economy Minister planned to attend the parliamentary budget committee meeting to discuss the issue of USD rate, MP noted.
It's not the country's interest to increase the exchange rate suddenly up to 10 percent.
The Iranian Central Bank increased USD up to 10.5 percent and Euro up to 11 percent on Wednesday.
The Iranian Central Bank increased USD from 10,590 to 11,710 rials, the rate of euro increased from 17,200 to 17,180 rials on Wednesday to equalize the exchange rate.