International Monetary Fund (IMF) Middle East and Central Asia director, Jihad Azour, states during a meeting with AFP at Dubai’s International Financial Center on April 28, 2019.
In following year Iran’s budget is predictably decline more and price rises could extent 40 per cent, an IMF senior official said, as the country manages with the influence of tighter sanctions enforced by the United States.
Preceding year Iran’s economy decline by 3.9 percent, as per prediction of IMF, approximately 6 percent it will decline more in 2019. Demanded buyers of Iranian oil stop purchasing due to sanctions by the month of May, Iran’s biggest buyers continue importing limited volumes as ending six months of waivers.
He said, “Clearly the re-imposition of sanctions and the removal of the waivers will have additional negative impact on the Iranian economy both in and in terms of inflation, where inflation could reach 40 per cent or terms of growth even more this year”
More than $10 billion in oil revenue have denied by Iran’s government against US sanctions. The riyal, lost more than 60 per cent last year, disrupting Iran’s foreign trade and boosting annual inflation.
Azour said, the difference between market and official exchange rate would eradicate if Iran struggle hard. Weak currency and galloping inflation have been a complaint of sporadic street protests since late 2017.
“By aligning the market and official rates this will help tame and control inflation and will reduce pressure on the exchange rate.”