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Iran: $27 Billion Transferred Abroad In 2017

The highly fluctuating rate of exchange in Iran effects the rising cost of living
The highly fluctuating rate of exchange in Iran effects the rising cost of living

NCRI, 21 April 2018 - In an interview with state-run news agency ILNA, Haydar Hosseini, an Iranian economist, referring to the report by International Monetary Fund said that in 2017 around $27 billion of foreign currency had been withdrawn from the country and transferred abroad, which was implicitly endorsed by the head of the Iranian parliament’s economic committee.

He argued that most of the dollars that have not entered the economic cycle (circulation) at all are now left to the people, and the reason is that the government has no coherent economic program.

Hosseini announced that the budget for 2018 fiscal year, approved by parliament, will not solve any economic problems of the society and the people.

ILNA news agency has described the unclear economic policies, especially the currency policy, as one of the main reasons for the continuing decline in investment in Iran and said the currency was one of the most important variables affecting the various economic centers of the country.

Hosseini said that if the country’s currency exchange policy is not stable and that the exchange rate is constantly being manipulated by the government, investments will face uncertainty and constant hesitation.

He added that because of the instability and constant manipulation of the exchange rate by the government, the economy did not come out of recession, not even able to return to the situation of the year 2011.

Another consequence of this recession and instability in the Iranian economy and the foreign exchange market is the withdrawal of capital from the country and the desire for spending savings to buy foreign currency, gold and coins, which, according to Hosseini, has no efficiency and revenue.

In another part of his statements about the obstacles to the country's recovery from the recession, the economist has said that currently there are about six hundred variables and obstacles in Iran's business environment, and according to Ishaq Jahangiri, the first vice president of the regime, some 1,400 instructions that act as deterrents in the country’s business operations as well.

He added that the dollar's rate affects many products and the rise in dollar prices leads to higher inflation rates.

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