Estimated $50b in Household Foreign Currency Holdings in Iran
TEHRAN (Iran News) Speaking about the country’s economic conditions and persistent inflation, Pour-Ebrahimi noted that many Iranians have turned to investments in foreign currency and gold to protect their assets from inflation. He explained that these assets, similar to real estate, have values that fluctuate in line with inflation, making them a preferred store of wealth.
He attributed this trend to the high inflation rates in the country and criticized previous administrations for failing to channel these assets into productive economic activities. He recalled that during previous governments, banks had introduced foreign currency deposits, allowing people to earn interest on their foreign currency holdings and settle loans based on the currency value.
However, he criticized a policy change in which depositors were later forced to withdraw their foreign currency holdings in Iranian rials at fixed rates, a move that he described as legally and economically unjustified. This, he argued, led people to keep their savings in cash or move them into informal markets, further limiting capital available for productive investment.
Pour-Ebrahimi emphasized that if even a portion of these household savings were reinvested into production, it could help boost Iran’s economic growth. He stressed that economic growth depends on reinvesting assets into productive sectors, increasing GDP, and creating new wealth. Without investment, he warned, Iran’s economy would shrink, leading to lower incomes and reduced consumption.
He concluded by urging authorities to take measures that encourage people to reintegrate these assets into the formal economy, thereby strengthening Iran’s financial system and supporting sustainable economic development.
- source : IRAN NEWS ECONOMIC DESK
