Iranian MP: declining value of national currency as one of main reasons for rising prices

Business Materials 14 May 2019 13:55 (UTC +04:00)

Baku, Azerbaijan, May 14

By Elnur Baghishov – Trend:

One of the main reasons for the rise in prices of products in Iran is the decline in the value of the national currency, and the issue shall be addressed, Mohammad Reza Pourebrahimi, Chairman of the Economic Committee of the Iranian Parliament, told Tasnim News Agency, Trend reports.

According to Pourebrahimi, the government and the parliament should seriously investigate the causes of the increase in prices.

For example, if the price of a given product was previously $10, it may still retain the same price; however “if this product used to be imported at a rate of 40,000 rials per $1, it is now being imported at a rate of 130,000 rials per $1," he said.

Pourebrahimi said that the value of the national currency should be increased in order to reduce the impact of inflation on the economy.

Stressing that the Central Bank of Iran should take a serious step towards increasing the value of the national currency, the Iranian MP added that increasing production and export potential in Iran can also lead to an increase in the value of the national currency.

"I hope that steps of the Central Bank aimed at improving the economic structure in short-term and long-term will ultimately result in the increase in the value of the national currency," he said.

The price of $1 equals to 42,000 rials in Iran’s official exchange rate. The official exchange rate is used for the import of some essential products.

The SANA system is a system announced by the Central Bank of Iran to the currency exchange offices, where the price of 1 euro is 168,330 rials, and the price of $1 is 149,348 rials.

NIMA is a system intended for the sale of a certain percentage of the foreign currency gained from the sale non-essential goods and export. The price of 1 euro in this system is 115,440 rials, and the price of $1 is 112,600 rials.

In the black market, $1 is worth about 146,000-149,000 rials, while 1 euro is worth about 165,000-169,000 rials.