Iran's foreign currency policy need reform, says economist
Tehran, Iran, Aug.21
Foreign currency market needs reform while the current policies of Iranian government should control the mismanagement, said Iranian economist.
Mahmoud Jamsaz discussed the tension in foreign currency market in an interview with Trend.
"Iran's economy is a public economy and the government is involved in all economic areas from monetary sector and foreign currency to import and export. Improving monetary policies should be implemented by the Central Bank of Iran, but the government is responsible for it," he noted.
"The government is involved in the foreign currency market and also effects the price in auto, steel, metal and real estate market directly or indirectly via non- governmental organizations," he said.
"The major control over economy and economic policies are indirectly imposed by demands of these organizations on government and there is no competitive market," he added.
The economist noted that considering the Central Bank of Iran's monetary and foreign currency experience, the body is not independent.
"In past 40 years, the CBI Governor was not independent and would give up to the government demands for loan or printing money, while its different in other countries and the heads of central banks are not appointed by the government," he said.
"Unfortunately, the foreign currency policy was not independent and various organizations meddled in decision making process, especially during the intense domestic and diplomatic situation, when the country's economy faces various problems and is affected by government policies," he added.