Iranian parliament to summon economy minister over rial depreciation

Iran Materials 24 January 2012 12:14 (UTC +04:00)

Azerbaijan, Baku, Jan. 24 / Trend F.Milad/

The chairman of the Iranian parliament's economic committee said that the economy minister will be summoned to explain the instability in the currency market which has led to an unprecedented depreciation of rial compared to dollar.

MP Arsalan Fathipour told Fars news agency that economy minister Shamseddin Hosseini and officials of other state-run organizations, such as the Central Bank, must be accountable for their tactless decisions.

The dollar is currently sold at above 20,000 rials in Iran's free market. This issue will certainly face the domestic production sector with serious problems, Fathipour said.

Iran's rial currency plunged 10 percent to a new record low on Monday as the EU imposed a ban on Iranian oil imports. The price of dollars increased by 7 percent from Saturday, the last working day, to 20,500 rials, up 15 percent last week. It has rallied almost 50 percent a month ago.

Monday's black market dollar price was 80 percent more than the central bank's official "reference rate" of 11,300 rials.