Ahmadinejad directs central bank to lower forex rate

President Mahmoud Ahmadinejad has called the central bank governor to take measures for normalizing the foreign exchange rate down to an acceptable real figure.

He made the remark in an interview on state television late on Saturday. He argued that the huge foreign exchange reserves should boost the national currency and the decline in the forex should continue.

The greenback rates rose sharply in late September and surged to around 12,500 rials, but the central bank's intervention measures reduced the market price to some 10,500 rials.

Ahmadinejad announced Saturday that Iran has over 100 billion dollars in foreign currency reserves.

"The country's foreign currency reserves have been estimated at 100 billion dollars, but it is definitely more than this figure," Ahmadinejad told participants at a national conference on development of the banking system in Tehran.

he president also said that financial resources should be allocated to various economic sectors at the appropriate time and in proportion to their priority.

He went on to say that the people's concerns about housing will be resolved in the next two years through efforts by banks.

Central Bank of Iran Governor Mahmoud Bahmani told the conference that Iran has converted 15 percent of its foreign exchange reserves into gold stocks, and thus there is no need to import gold for the next ten years.

He also said that the country's foreign currency reserve has gained several billion dollars in value as a result of the rise in global gold prices.

Exporters prefer a rising dollar

Meanwhile, the head of the Trade Promotion Organization of Iran (TPOI) stated that exporters prefer higher exchange rates for the dollar in order to increase earnings from exports.

The TPOI Babak Afqahi added that the government has adopted policies to support domestic exporters.

Subsidy reform plan to bring 'economic revolution'

In his interview with the state television, Ahmadinejad, whose government has started implementing a plan to slash subsidies on food and utilities, called on Iranians to brace themselves for an "economic revolution" and urged them to co-operate by reducing their energy consumption.

The main aim of the program "is for consumption to be optimized and for the country's riches to be correctly used," Ahmadinejad said.

"When subsidies are given to the population as a whole, the wealth is being wasted," Bloomberg quoted the president. Under the new program the money will be "targeted" to benefit the needy citizens, he said.

Iran's subsidies system, which artificially keeps the price of goods such as gasoline and flour below its real value, is being revised at a time when pressure mounts on the country from a fourth round of United Nations sanctions over the country's nuclear program.

he Islamic Republic aims to save $20 billion in the first 12 months of the five-year subsidy-reduction program which is due to begin this year. It will use 80 percent of that money for cash grants to the lower and middle class sectors and for targeted support to the energy-intensive industries.

Earlier this month, the government started crediting the accounts of the poorest Iranian households in several provinces to provide a cushion once prices caps are removed. The government plans to distribute the grants every two months, Ahmadinejad said.

JCPOA Joint Commission to convene on April 20
JCPOA Joint Commission to convene on April 20
JCPOA negotiations reach progress, Iran's MFA spokesman says
JCPOA negotiations reach progress, Iran's MFA spokesman says
Iran's parliamentary speaker talks JCPOA
Iran's parliamentary speaker talks JCPOA
Loading Bars
Latest
Karabakh ceasefire agreement signed, time to move forward - Commissioner for Human Rights
Some Russian airlines receive permission to make regular flights to Azerbaijan
View of Azerbaijan's liberated territories horrifying - Belarus ambassador
Execution of memorandum on improving insurance literacy starts in Azerbaijan
Uzbekneftegaz completes drilling operations on several wells
Number of transactions at Uzbek Commodity Exchange for 1Q2021 increases
EIB to assist Uzbekistan in developing credit line for project in Aral Sea region
Longest tunnel in Iran to be opened by end of spring
WB expresses readiness to provide digital transformation support to Azerbaijan
Iran creating water trading market
Volume of credit investments in Azerbaijan's economy declines
Iran’s Bahar Azadi gold coin price rebounds
WB predicts fall in gold prices in 2021
Kazakhstan to establish new mobile operator
Exports markets demonstrate growing demand for Georgian medications
Kazakhstan talks ongoing work to open CLAAS agricultural vehicles' assembly plant
Turkmenistan's Turkmenbashi refinery to launch production of Jet A-1 aviation fuel
Uzbekistan, Latvia consider prospects for co-op in ICT
Azerbaijan shows footage from Bash Garvand village of Aghdam district (VIDEO)
Postal operators of Azerbaijan, Turkey launch money transfer service at favorable tariffs
India’s crosses a Landmark with Cumulative Vaccination Coverage more than 13 Crores
SOCAR Ukraine bidding for Odessa Port Plant’s tender
London Bridge station reopens after suspicious item investigated
Uzbek-Korean JSC announces tender for transport services
PM Modi to address virtual Leaders' Summit on Climate tomorrow
Turkmenistan's Turkmengeology opens tender for purchase of equipment
Delayed tourism recovery affects Georgian economic growth forecast
India gets elected to three UN ECOSOC bodies
Turkmenistan's Turkmengas opens tender for purchase of chemical products
UK extends G7 Foreign Ministers' meeting invite to India
Kazakhstan’s national postal service operator to buy spares via tender
Georgia prepares for UN Food Systems Summit 2021
Azerbaijan shares data on number of vaccinated citizens for Apr. 21
Azerbaijan confirms 2,075 more COVID-19 cases, 2,480 recoveries
Iran Khodro declares amount of money to be saved
IRICA discloses details of Iran’s trade turnover with neighboring countries
Turkey reveals volume of goods received at Bandirma port in 2M2021
Georgian commercial banks see increase in profits
Industrial parks will also operate in Karabakh zone - President Aliyev
COVID-19 stalls launch of direct flights between Kazakhstan, US - ambassador
European countries to resume J&J COVID vaccine deliveries
Azerbaijan discloses volume of vehicles assembled at Ganja Automobile Plant
Dutch Stone City Energy to build TPP in Uzbekistan’s Surkhandarya region
WB names amount of allocations to countries against COVID-19
Carbamide production in Azerbaijan to grow, WB forecasts
Baku Stock Exchange holds auction on placement of CBA short-term notes
Turkmenistan's gas compressor plant contributes gas supply to oil wells
Eurasian Development Bank to support hospitals construction in Kazakhstan
Number of Kazakh companies increases in Turkey
Turkey unveils volume of cargo shipment through Kocaeli port
Onion exports from Georgia up, while imports decrease
Azerbaijan's Ganja Automobile Plant looks to enter markets of EAEU, neighboring countries
TCO talks release of excess amount pollutants at Kazakhstan’s Tengiz field
Azerbaijan eyes to introduce biometric e-signature system
Verizon loses more-than-expected wireless subscribers
Pace of Turkmen industry dev’t accelerating
Volume of Azerbaijan's 1Q2021 oil export to Spain disclosed
Austria increases import of Turkish-made chemicals
Silk Way West Airlines named ‘Cargo Airline of the Year 2020’
Turkey's 1Q2021 furniture export to Austria shows increase
Turkey's furniture export to Iran up
WB says global coal prices to jump in 2021
Cost of electricity imports to Georgia increase
Iran's Jam Petrochemical Complex sees increase in sales
Ukrainian Bees Airline plans to carry out Kyiv - Tbilisi - Kyiv flights
Azerbaijani state budget receipts through State Customs Committee exceed forecasts
Israel and UK consider green travel corridor
Chanel loses European court fight in trademark dispute with Huawei
Azerbaijan records decrease in lending to communications, transport sector
US committed to help diversify economic opportunities for people of Kazakhstan
101-year-old Malaysian INA veteran honoured
Roaming tariffs to be decreased within Eastern Partnership over next 5 years – deputy minister
Kazakhstan increases exports to UK
Iran receives part of its frozen funds from S.Korea to purchase COVID-19 vaccine
Kazakh-German oil extracting JV opens tender to buy batteries
Russia played major role in stopping armed conflict in Karabakh region - Putin
Turkey reveals cargo shipment volumes via its Tekirdag port
Value of Turkish furniture imports by France increases
Turkmenistan's import of Turkish electrical goods soars
BP announces West Azeri planned maintenance program
Passenger cars manufacturing surges in volume in Kazakhstan
Iran to commission over 100 industrial enterprises in Qom Province
Turkmenistan's Turkmennebit reveals data on production, supply of gas
Uzbekneftegaz reveals prices of petrol supplied for exchange trading for Apr. 12-16
PAYSIS names conditions for effectiveness of marketplaces in Azerbaijan
Uzbekistan, Latvia expanding trade and economic co-op
Number of mortgage loans issued by Uzbek commercial banks increased
Second container train from China reaches Baku
Carbon capture capacities to see 250% increase by 2030
Austria's 1Q2021 import of Turkish cars up in value
Instagram launches feature to tackle hate speech, abuse
Armenian fascism - ugliest, most brutal of all that existed in other countries - Azerbaijani president
Emirates may need to raise cash if air travel does not pick up
We are implementing Zangazur corridor, whether Armenia wants it or not - President Aliyev
Iran reveals COVID-19 data for April 21
Azerbaijan's state budget revenues from State Tax Service exceed forecast
Turkey unveils 2M2021 volume of cargo received by Istanbul port
Uzbekneftegaz to buy synthetic zeolite via tender
German companies' 1Q2021 total capital in Turkey grows
Azerbaijan's 1Q2021 state budget spending mostly account for current costs
All news