Hidden subsidies | Providing credit cards to people is the best alternative to 4200 Tomans

In an interview with Fars News Agency’s economic correspondent, Afshin Kolahy stated that paying 4,200 Tomans was not the right policy from the beginning: “Immediate decisions cause many problems for the economy and in practice show their negative consequences.” In general, whenever the currency depreciates, it definitely creates rents and corruption. Multipurpose currency basically has no correct meaning, but there must be a single exchange rate for the currency.

He called the government monitoring of the 420 Toman currency allocation cycle inefficient and added: “When the decision was made to pay the government currency, the idea of ​​monitoring the payment and how it was spent was easily considered, but during the implementation it became clear that this was possible at all.” is not.

A member of the Tehran Chamber of Deputies stated that the price of currency alone does not determine the price of goods. Lays. For example, when government currency is allocated to livestock inputs but the price of fertilizer or livestock equipment and machinery increases every day, it will affect the cost of the product and raise its price.

He continued: “Therefore, the goals set for the allocation of government currency were not only not met, but also created rents and corruption.” Continued supply of preferential currency to consumers has not been fruitful and in the long run will increase the poverty line.

Kolahy stated: The previous government and the current government are aware of the negative effects of the 4,200 Toman currency, but they have not yet taken action to prevent the emotional consequences of its removal. The country’s economy has reached this stage over the past years and has not suffered from these problems overnight, part of the reason being due to expediency. For this reason, government officials do not resort to harsh decisions.

He spoke about the best alternative to preferential foreign exchange policy: “Single exchange rate and tools such as paying credit card to buy goods for the people is one of the best ways to replace government foreign exchange policy so as not to affect inflation.” According to estimates, the amount of 250 to 300 thousand tomans for credit cards can be a suitable figure.

“Credit card payment policy is a much more correct method than paying government currency, but it should not last forever,” Kolahy added. Rents and subsidies have devastating effects on society in the long run. In other countries, efforts are usually made to help vulnerable groups through the accountability of social activists. Be guided by vulnerable groups.

In the end, the member of the Tehran Chamber of Commerce, referring to the elimination of government currency as the best way to stop the harmful effects of this currency, added: Prevented injuries. As well as the gradual elimination of this currency also helps to reduce tensions.

End of message /

You can edit this post