“Government Should Set the Currency Rates More Than Current Official Rates”

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Written By Farid Shojaei

Ahmad Hatami, the former Chairman and Managing Director of Bank Saderat Iran and Bank Tejarat, suggests the Iranian government to set the foreign exchange rates more than the current official rates for its next year budget case. Recently Iran’s government sent the budget case of the upcoming fiscal year to Majlis. According to the approved clauses, the government has set the currency rates less than the current official rates in order to alleviate the critical market of currency markets.

“Today Iran is under high economical pressures from the Western countries so the government must plan a unique and original budget request for the next fiscal year. The mismanagements and mistakes made by government can act as a guillotine for our economy.” said Ahmad Hatami, the Chairman of Middle East Strategies.

“Government must pay extra attention to the currency rates reported in its budget plan. So in my opinion it is better if they set the currency rates more than the current official rates.” Ahmad Hatami added and urged the government to revise the budget case according to the latest discussions with International Atomic Energy Agency (IAEA). Hatami believes the currency rates will be increased in the country if government fails to reach an agreement with the Western sides on the controversial nuclear case.

Iran’s Rial has lost a majority of its value against foreign currencies because of the strict sanctions set by United States and European Union on its economy.