Thursday, April 15, 2010
Iran says slashing currency zeros not on agenda
Tehran Times Economic Desk
TEHRAN – Dropping 3 zeros from the national currency will not be on the agenda till the method of implementation of the subsidy reform plan is specified, the Iranian Central Bank governor said.
The Islamic Republic of Iran Broadcasting quoted Mahmoud Bahmani as saying that the subsidy reform plan is an economic challenge itself and we do not intent to fuel the challenges.
In September 2009, Bahmani had announced plans to devaluate the currency by three decimal places but later said the idea had been shelved for further consideration.
President Mahmoud Ahmadinejad directed the Central Bank of Iran in 2007 to mull over the concept of devaluating the national currency.
Bahmani had previously stated that the subsidy reform plan would add the inflation rate by maximum 15 percent.
The inflation rate in the last calendar month of Esfand (ended on March 20) reached 10.8 percent, the Central Bank said.
The goal of the subsidy reform plan is to bring prices to their true market level within a five-year period. The plan mainly targets energy prices.
According to the plan, the administration is obligated to reform the energy prices by the end of the fifth development plan (2010-2015)
Iran says slashing currency zeros not on agenda
Tehran Times Economic Desk
TEHRAN – Dropping 3 zeros from the national currency will not be on the agenda till the method of implementation of the subsidy reform plan is specified, the Iranian Central Bank governor said.
The Islamic Republic of Iran Broadcasting quoted Mahmoud Bahmani as saying that the subsidy reform plan is an economic challenge itself and we do not intent to fuel the challenges.
In September 2009, Bahmani had announced plans to devaluate the currency by three decimal places but later said the idea had been shelved for further consideration.
President Mahmoud Ahmadinejad directed the Central Bank of Iran in 2007 to mull over the concept of devaluating the national currency.
Bahmani had previously stated that the subsidy reform plan would add the inflation rate by maximum 15 percent.
The inflation rate in the last calendar month of Esfand (ended on March 20) reached 10.8 percent, the Central Bank said.
The goal of the subsidy reform plan is to bring prices to their true market level within a five-year period. The plan mainly targets energy prices.
According to the plan, the administration is obligated to reform the energy prices by the end of the fifth development plan (2010-2015)
