Iran’s Raisi pledges to tackle inflation

Tehran, Iran (AFP):

Iranian President Ebrahim Raisi has set the tackling of galloping inflation and currency devaluation as priorities for the 2023-2024 budget presented to the parliament.

The pledge came as the Iranian currency touched a new low.

Addressing MPs, Raisi tried to reassure Iranians about the economy which faces a serious crisis due primarily to US sanctions on oil exports. These were re-imposed after Washington’s withdrawal from the nuclear deal in 2018 under the Trump presidency.

“Transparency, improving people’s livelihoods… controlling inflation and costs and supporting the stock market” are the budget priorities for the year starting on March 21, Raisi said.

At the end of December, the governor of the central bank resigned after the currency lost around 30 percent of its value in two months, falling from 330,000 to 430,000 per US dollar.

On Sunday, the national currency traded at around 450,000 rials per dollar, a new all-time low.

Inflation reached 45 percent at the end of December.

“Know that the prices of (foreign) currencies and gold, as well as the prices of many expensive things in the country will decrease,” the president promised, without explaining in detail the strategy of the government to achieve this.

Iran’s economy has been subject to increasing pressure with fresh sanctions imposed by Western countries over the authorities’ response to protests sparked by the death of Mahsa Amini.

“The enemy is trying to impose difficult conditions and despair on the people” but “the government and parliament must give people hope,” Raisi said.