News ID: 232167
Published: 0145 GMT October 02, 2018

VP apologizes to Iranians over economic issues as rial gains

VP apologizes to Iranians over economic issues as rial gains
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Vice President Es’haq Jahangiri on Tuesday apologized to Iranians over economic problems cropped up amid US sanctions, assuring that authorities are working round the clock to tackle them.

“I apologize to the honorable people for some problems and assure that the country's management and, at the helm, the Leader are working day and night so that we can counter the problems,” Jahangiri said.

He said the government is aware of the conditions and difficulties faced by the people, Press TV wrote.

The fall of Iran’s currency following US President Donald Trump’s reimposition of new sanctions on the country has resulted in steep rises in the prices of commodities and led to a surge in the cost of living.

“Part of these hardships is the result of US sanctions and pressures, but what's important is that Iran has a lot of potentials and capacities, and in addition to these capacities, there is an enormous manpower in the country,” Jahangiri said.

His remarks, made during a ceremony to open 1,700 educational and sporting centers across the country, came amid criticism of the government’s handling of the economy and its perceived failure to associate with the people and talk to them about the situation.

Several officials have blamed “enemies” for the problems, but Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei said in August they mainly stem from within the country.

"Not that sanctions don't have an impact, but the main factor is how we handle them," he said.

The government’s bid in April to engineer a controlled depreciation of the rial in order to prop up the export sector and attract hard currency into the country to offset the fallout from Trump’s restoration of sanctions backfired. The move generated an underground network of forex sellers who stoked further depreciation of the national currency.

The government is currently on damage control, implementing a series of measures which are beginning to bear fruit, helping the rial claw back some losses.

On Saturday, a top body headed by President Hassan Rouhani and the heads of the Judiciary and Parliament gave the Central Bank governor the necessary authority to intervene in the foreign exchange market and to manage it.

The decision on the first trading day of the week saw the rial recoup some of its losses and trade at around 174,300 per dollar.

The resurgence continued on Tuesday, with the greenback slumping to around 140,000 rials.

Iran’s Judiciary is also coming down heavily on those disrupting the currency market. On Sunday, it handed down death sentences to three people convicted of economic corruption.  

The decision has generated a lot of optimism among ordinary Iranians who had been calling for stringent measures to stem corruption and speculation against the national currency.

 

 

   
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