News ID: 237593
Published: 0351 GMT January 19, 2019

Expert: National currency's value can be increased by supporting production

Expert: National currency's value can be increased by supporting production

The value of Iran's national currency can be increased by strengthening local production, not by slashing four zeros from the currency, said an Iranian economy expert.

Akbar Abdolbari Mohammadi told IRNA that the current economic situation isn't conducive for the removal of four zeros from the national currency.

Actually, keeping liquidity and inflation under control is more important, he noted.

He added that the government has put forward a number of reasons for the removal of four zeros from the national currency and said that it doesn't have an impact on the economy and inflation.

However, it has an effective psychological effect, and it is also effective for calculating the national currency compared to foreign currency, he said.

"What makes us seriously think so is that slashing of four zeros wouldn't lead to an increase in inflation since in some Iranian districts, products and services are still available at a cost of below 10,000 rials," he said.

"The government may create conditions for directing liquidity towards revenue-generating oil projects by setting up infrastructure for such projects," he noted.

"Thus, the government can control liquidity and inflation and protect the value of the national currency. The government and the Parliament should help local production to bring revenues. Taxes, customs duties, inflation and a number of other factors exert pressure on local producers and significantly reduce the profitability of local production."

   
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