TEHRAN (Iran News) – Minister Finance and Economic Affairs Ehsan Khandouzi in a TV program highlighted major economic policies and performance of the government and said that the government is determined to create stability in the forex market.
Khandouzi said considering that from 2018 to 2022 the country has passed a four-year inflation era, the main priority of the economic headquarters of the government is to use all tools to rein the inflation.
He added that the government has tried to manage its budget deficits, adding that then it will manage the banking system and rein unruly money generation in this system for controlling the inflation.
Khandouzi went on to say that the third action is to manage inflation expectation like the issue of forex, adding that the policy of the government has been to create stability in the forex market that unfortunately some people had wrong notions that the government was to fix the forex rate on a certain rate but the government actually emphasized the stability of the forex market in the NIMA system.
He noted that most imports should be channeled via the NIMA system where the average price of dollar will be 28,500 tomans and major needs of the country which is 85% are met via this official market.
He reiterated that the government and the Central Bank are determined to manage the forex demands in the market, adding that the remaining forex demands of the country belongs to the unofficial imports and smuggled goods whose forex are provided via the futures channels and it almost covers 15% of the forex market, and of course it has its own impact on the price of imported goods.
On the recent change in the management of the Central Bank and new policies of the bank, Khandouzi said that the new policy which has been put on the agenda of the government and the Central Bank is to take new measures with new teams for managing the forex demands in the market.
He went on to say that some of the fluctuations in the forex market have been because of the inflation expectations and but some mistakes in the Central Bank which led to this inflation expectations and some people thought the country was facing with the shortage of dollars and rushed to buy it and it led to rise in the price of dollar.
On the complaints of people about the economic condition, the minister said that there is a difference between the complaints of the people and unfair criticisms, adding that people are right and their complaints are logical and the government is trying hard to manage these issues.
Khandouzi went on to say that when the current government took office last year, the inflation rate was 59.3% but today the inflation condition is in much better condition although the current 40% is not favorable but the policies are focused to reduce the inflation rate in the next two years.
He reiterated that the government and country according to the statistics which are announced by the official bodies is not in the worst condition and the country is on the improvement track and of course the 40-percent inflation rate is not good for the people and the country.
Khandouzi reiterated that the government tries to control inflation pressure on the public by taking proper measures. He reiterated that the government does not like the price of dollar to rise in the market while some accuse the government of enjoying the devaluation of rial to cover its budget deficit.
He also criticized the previous government for some of current problems like tying the economic condition to the international relations.
Khandouzi went on to say that the non-oil exports in 10 months of the current year have grown by 19% comparing to the same period last year and it shows that the government is expanding its economic interactions with other countries which like to work with Iran.
