Fixed exchange rate in Iran, good and bad sides
By Temkin Jafarov, Mehdi Sepahvand - Trend:
In fixing the exchange rate, care must be taken not to be afflicted by the bad sides, senior member of the Iranian Parliament, Iraj Nadimi said.
The President of the Central Bank of Iran Valiollah Seif recently said that exchange rate in the country will be fixed after a nuclear deal with world powers.
Whatever good points arise from fixing exchange rates, care must be taken not to let go of the other aspects of the issue which could end in serious problems, Iraj Nadimi, deputy chairman of the Economic Commission of the Iranian Parliament, told Trend June 2.
By itself, fixing exchange rates is a good thing, it will prevent corruption and strengthen the competitive atmosphere, he said.
"However, there are downsides. Once we do that, we must also take care of production and consumption,'' Nadimi reminded.
''We have to agree that regarding production in the competitive atmosphere, everything is evaluated together, such as inflation, interest rate, business market, and exchange rate, the MP said. If things are not taken care of, there will be no competition, smuggling will boom, and imports will peak,'' the lawmaker said.
Also, regarding consumption, Nadimi said that if prices hike, the end users would face troubles both in terms of quality and quantity of the goods and services they may receive.
Therefore, he concluded, if the government takes care of the multiplicity of the factors involved and provides good management over the situation, fixing the exchange rate will be beneficial.
Edited by CN