Ahmadinejad agrees to increase the interest rates to ease cash crisis

25/01/2012 | (Voice of Iraq) - Add comments - TEHRAN (Reuters) agreed with Iranian President Mahmoud Ahmadinejad to increase interest rates on Wednesday to ease the currency crisis has been exacerbated by the new Western sanctions. The news agency said the Islamic Republic of Iran, "declared Minister of Economy, said that Ahmadinejad ratified the approval of the Monetary and credit to raise interest rates on bank deposits to about 21 percent. " sanctions have declared by the United States and the European Union over the previous month target oil exports Iran's vitality and its central bank to growing concerns about the economy and weakened the flows foreign exchange. and lost currency Iranian Rial already part of its value since the decision issued in April to reduce interest on deposits in banks to between 12.5 and 15.5 percent, below the rate of inflation, which currently stands at about 20 percent, prompting many from the Iranians to withdraw their savings from banks to buy gold and foreign exchange, which in turn led to the rise of prices. But the rush towards the safe havens accelerated sharply after the announcement of new sanctions, which resulted in the loss of the riyal to 50 percent of its value against the dollar on the open market in just one month . The final decision fell in the policy of Ahmadinejad, who faces political test is in the parliamentary elections to be held on the second of March. He objected to Ahmadinejad in the earlier efforts of Mahmoud Bahmani governor of Iran's central bank to raise interest rates. The fall in the riyal a major threat to inflation rising already made ​​with Iran intensified on the import of consumer goods and intermediate products whose prices have increased with the depreciation of the rial. The West hopes to force the economic pressure Iran to abandon its nuclear program the West fears that the program aims to produce nuclear weapons, while Iran says it is purely for peaceful purposes. Mohammad Reza Mir Taj Din representative of the Iranian President in the Parliament that the policy seriously blow up what he called the bubble prices of gold and the dollar. The media domestic prices of gold coins weighing 8.133 grams of one fell on the news to eight million and 500 thousand riyals consuming most of the increase achieved in the previous week and reached 45 percent when the price rose to ten million and SR 100. The news agency quoted Iranian Mir Taj Din said, "will be effects of the new resolution is clear on the market very soon and will end bubbles foreign exchange and gold. " not affected by the dollar exchange rate is noteworthy because the agency said that the dollar fell on the news to 22,500 riyals than 23,000 Real where he is still at twice the reference price of the official of the Central Bank of $ 11,293 riyals against the dollar. , however, said exchange companies, contacted by Reuters she did not have to sell dollars, which reflects either a lack of cash or reluctant to sell in such a volatile atmosphere.

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