The inflation rate could rise this year to 40 per cent, ahead of the IMF said on Monday. The re-imposition of sanctions and the abolition of the exception regulations in the Oil exports “will have a clearly negative impact on the Iranian economy, both the growth as well as Inflation,” said the responsible for the Region, IMF expert, Jihad Azour, the Reuters news Agency.
“could reach The Inflation in this year, 40 per cent or even more.” The gross domestic product is expected to shrink by around six percent, after the economy was already sunk in 2018 of 3.9 percent.
US President, Donald Trump had announced in the past year, the international nuclear agreement with Iran and new sanctions imposed. They aim, among other things, on the Iran’s income from Oil business. Trump wants to force the leadership in Tehran in order to renegotiate a stronger agreement on their nuclear and missile program. First of all, exceptions for some Oil-importing countries such as China were for the sanctions. On Easter Monday, the U.S. announced the government then to remove them by may.
One reason for the Inflation, the weak national currency, the Rial. This depreciated in the past year, more than 60 percent, which increases the cost of imports. The official exchange rate to the Dollar is at 42,000 Rial, while the exchange website Bonbast.com leads him in 144.000. Iran should work to eliminate this gap, said the IMF expert Azour. “Through the convergence of market and Central Rates, Inflation is tamed and controlled, and the pressure on the exchange rate decreases.”