Tehran, Iran, January 1
By Mehdi Sepahvand –- Trend:
The Iranian government is going to flood the market with more dollars in a bid to tackle a rising value of the dollar against the national currency, the Iranian rial.
The rising value of dollar in the past few weeks is not economically justified and the dollar is sure to go down as psychological and political factors influencing it are eliminated, Iran’s Presidential Office Secretary Mohammad Nahavandian said, IRIB news agency reported January 1.
He said the declining inflation that recently reached 7 percent, as well as the country’s economic growth rate of 7 percent indicate that a rising dollar is not justified.
In the past few weeks the dollar rose to above 40,000 rials in the Iranian market. About a year ago the dollar used to hover around 32,000 rials.
Inflation rate in Iran was beyond 40 percent when President Hassan Rouhani took office in 2013. His monetary policies have brought it down to around 7, according to latest reports.