Iranian President Mahmoud Ahmadinejad Tehran - Arabstoday Iranian President Mahmoud Ahmadinejad has approved increasing bank interest rates to 21 per cent, state media reported yesterday, in a reversal of his earlier opposition to a move economists said was crucial to absorbing liquidity in the market and supporting the Iranian currency.The move came as the rial, under pressure after new US sanctions targeting Iran's Central Bank, shed about 50 per cent of its value relative to the dollar in the span of a month. The depreciation built on mounting worries over Iran's growing international isolation over its controversial nuclear programme. The European Union earlier this week approved an embargo on Iranian crude. Ahmadinejad has resisted a decision by Iran's Money and Credit council to raise interest rates — a move analysts and economists said was necessary to sap excess liquidity from the market and encourage Iranians to deposit money in banks instead of buying hard currency in the black market. While Iranian officials sought to stem the rial's depreciation through a host of restrictions, including setting a new official exchange rate and banning the buying of foreign currency outside of licensed currency changing venues, the moves did little to allay concerns in the market. The rial, which was trading at 15,000 to the dollar on the black market at the start of the year, hit a record low of 22,000 rials to the US currency by the weekend. The market reacted to the announcement immediately, with the rial trading at 21,000 to the dollar within an hour.
GMT 13:52 2018 Thursday ,13 December
Economic conference on investment opportunities in Syria kicks offGMT 12:24 2018 Sunday ,09 December
Cairo, Rome ink 45 million Euros deal to support Egyptian private sectorGMT 16:28 2018 Friday ,07 December
Putin does not rule out connecting South Europe to Turkish Stream via GreeceGMT 13:02 2018 Tuesday ,04 December
French PM puts fuel tax hike on hold after protestsGMT 07:54 2018 Sunday ,02 December
US and China agree to 90-day ceasefire on tariffs after leaders' meetGMT 12:27 2018 Friday ,30 November
G20 set to open in Argentina with global trade concerns in focusGMT 16:13 2018 Tuesday ,20 November
Eurasian Economic Commission, Thailand sign memorandum on cooperationGMT 16:41 2018 Monday ,19 November
Putin hails Turkish president’s role in seeing TurkStream project implementedMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor