Baku, Azerbaijan, Jan.31
By Fatih Karimov - Trend: Iran's Central Bank chief Valiollah Seif has criticized fiscal policies of ex-President Mahmoud Ahmadinejad, saying that $180 billion has been injected into the market during the past three years, ISNA reported on Jan. 30.
Some $180 billion has been injected into the market to stabilize the dollar exchange rate, but it was fruit of a wrong decision and commitment to mismanagement, Seif said.
The dollar exchange rate remained stable in the Iranian year 1389 (March 2010-March 2011) at 10,000 rials. But, it rose to 11,000 rials in year 1391. With intensified international sanctions against the country, the exchange rate surged to 36,000 rials in spring 2013.
After the presidential elections, the Iranian rial gained value, so that the dollar is currently sold at around 30,000 rials.
Although tens of people were arrested during the Ahmadinejad administration for causing trouble in the currency market, the dollar exchange rate continued to rise.
On January 6, Seif said liquidity in Iran is currently 5300 trillion rials (about $214 billion).
The Statistical Center of Iran has announced that the inflation rate for the 12-month period ended the tenth Iranian calendar month of Dey (ended on January 22) hit 35 percent.
The figure shows a 0.5 percent fall compared to the previous month.
In November 2013, Iranian President Hassan Rouhani said his government plans to decrease the inflation rate to below 25 percent by the end of the next Iranian calendar year 1393 (March 20, 2015).
The inflation rate is projected to be 35 percent at the end of the current Iranian calendar year (March 20, 2014).
"First, the administration plans to curb the inflation rate and reform the banking system, and then change the method of (cash) subsidy payments," he added.
Rouhani said his administration inherited an economy with a 5.8 percent contraction rate and an inflation rate of over 40 percent, according to the Central Bank of Iran.
In October 2013, Finance and Economic Affairs Minister Ali Tayyebnia said the government plans to reduce the inflation rate by 6 to 7 percent by the end of the current calendar year (March 20, 2014).
Through curbing the runaway liquidity growth in the country, hopefully the inflation rate can be decreased, he added.