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Iran VP Vows Fundamental Moves to Improve Economic Conditions


Iranian First Vice-President Eshaq Jahangiri declared on Tuesday the government’s new plans to control inflation and Iran’s currency fall.

“The new governor of the Central Bank of Iran (CBI) and the government’s economic team are devising policies proper to the country’s new conditions and they are trying to present a proposed package to improve the country’s economic conditions by the end of the current week (Friday),” Jahangiri told reporters upon arrival at Kermanshah city’s airport in Western Iran.

Iran’s currency has plunged to record low in the past few days as Iranians brace for Aug. 7 when the United States is due to reimpose a first lot of sanctions on their economy. Yet, Rial gained back 25 percent of its lost value in a few hours on Tuesday.

In May the United States pulled out of a 2015 deal between world powers and Tehran under which international sanctions on Iran were lifted in return for curbs on its nuclear program.

Washington decided to reimpose sanctions on Iran upon its withdrawal under allegations that it poses a security threat, and has told countries they must halt all imports of Iranian oil from November 4 or face US financial measures.

The Iranian rial has lost about half of its value since April because of domestic economic problems, financial difficulties with the banks abroad and heavy demand for dollars among Iranians.

Yet, experts see the US-Saudi tampering with Iran’s foreign currency markets in Dubai and Turkey as the root cause the rial depreciation in the last 5 months.

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