Inflation to decrease in Iran

Finance Materials 17 March 2020 18:03 (UTC +04:00)
Inflation to decrease in Iran

BAKU, Azerbaijan, March 17

By Elnur Baghishov - Trend:

Taking into account Iran's economic situation, liquidity and currency reserves, it is predicted inflation will fall by 15 percent in the next Iranian year (begining March 21, 2020), said Director General of the Central Bank Abdul-Nasser Hemmati, Trend reports citing IRINN.

According to Hemmati, inflation was 35 percent in the current Iranian year (March 21, 2019).

Hemmati added that Iranian exporters sold $24.4 billion worth of exported goods' revenue to banks at the NIMA exchange rate.

The official said that the return of this amount to the country's economic turnover is a great achievement, because of the US sanctions against Iran and the decline in oil revenues, an average of $1.5 billion per month is spent on imports of unnecessary products.

"So far, $14.8 billion has been allocated for imports of essential products," he said.

The US imposed new sanctions on Iran in November 2018. Over the past period, the sanctions included Iranian oil exports, more than 700 banks, companies and individuals.

Devaluation was experienced in the summer of 2018 in Iran. Thus, the $1 on 35,000 rials on the black market has gone up by more than 200,000 rials. With the intervention of the Iranian government on the foreign exchange market, the US dollar has fallen to some extent.

According to the currency exchange rate of the Central Bank of Iran, $1 equals 42,000 rials, based on the exchange rate offered to banks, 151,000 rials (SANA), 136,000 rials (NIMA), and on the black market - 157,000.