Big Money Put to Economics Cause Inflation in Iran - Iranian Economic Expert
Azerbaijan, Baku / Тrend corr D. Khatynoghlu / A rapid inflation increase in Iran is a result of directing the most part of petrodollars to economy. "The cause for the inflation in Iran is the big money put to economy," Iranian economic expert, Bijan Bidabad , said.
The amount of the funds put to economy in 2007 exceeds $150bln, Iranian ' Fars ' news agency reported at the beginning of October. According to the statistics provided by the Iranian Central Bank, increase in the funds allotted to economy in recent 2 years made up 100%, inflation increase - 15.8%.
As a result of wrong economic policy, the funds put to the economy were not taken into account, Bidabad said to Trend by phone on 22 October. Enacting of the Law on Interest-free Banking and the Central Bank's inability to control money turnover made it impossible to regulate inflation," the expert said.
The Law on Interest-free Banking was approved by the Iranian Parliament in 1981 on the basis of religious regulations and prohibited usury.
According to Bidabad , a range of Iran's financial organizations and the funds out of control of the Central Bank played the key role in inflation. The organizations' financial brokering damages the country's economic system, the expert said.
"UN Security Council's 2 resolutions against Iran have not yet caused inflation rise. But in future they will obstacle Iran's economic activities," he said.