The real price is 40 thousand tomans
The Iranian market is strongly influenced by the price of gasoline and the dollar. In recent years, whenever the dollar and gasoline rates have changed, the prices of many goods and services have also increased rapidly, and no mandate or government policy has been able to stop this inflationary wave.
The dollar rate had retreated to the 28,000 tomans channel in the open market during the past months, but in recent days we have seen an increase in currency prices, especially the dollar in the market. Does it mean that there is a possibility that prices will continue to rise or not?
The price of the currency is in the hands of the government
In this regard, Ali Asghar Samii, the head of the founding board of the Exchange Association, said: The country’s economic officials have left the door of the inflation stable open, and this has caused prices to escape from housing to food and other necessities of the people.
Referring to the government’s role in suppressing the price of currency and energy carriers, this economic expert explained: In late September of last year, the dollar rate was about 28 thousand tomans and the euro rate was about 33,000 tomans, while the inflation rate difference in our country and other countries The range of these two valid currencies was certainly more than 36%, so the price of the currency should have shown an average daily increase of one per thousand, which, for example, the price of the dollar at this time should have reached something like 39 thousand tomans, but because the supply was more than 80% of the currency used in the country is done by the government and its consumption can be controlled by the government, the price of the currency is largely determined by the government, which, considering that governments usually intend to win the hearts of the people, as much as it can, They continue to suppress the exchange rate.
In another part of the conversation with Iran Watch, the former head of the money changers association emphasized: The price of the dollar has increased very little compared to last year and it cannot be compared to other items and goods in any way, i.e. other goods that are owned by the government. No, on average, more than 40% have experienced a price increase, but the price of items such as currency and energy carriers, whose pricing is directly or indirectly controlled by the government, has been severely suppressed and its price has grown much less than the inflation rate. Is.
Sami said: One of the main tasks of central banks all over the world is to stabilize the currency price, but stability does not mean keeping the price stable despite high inflation, stability means controlling turbulence, fluctuations and adjusting the price according to the rate. swelling
He added: Letting go of the reins of inflation is considered a deadly poison for any economy, but the antidote to that poison is not another poison called currency price suppression, but the control of the amount of liquidity and lack of money creation, which is the main and real antidote for the inflation rate.
We are witnessing the suppression of currency prices!
This economic expert stated: Suppressing the currency price does not cause its real and intrinsic price to decrease, but the mandated price compresses the price spring and stores its energy so that it can cause a price explosion at a certain time with the least reason or excuse. That this experience has happened many times to our economy.
The government has no intention to control the fluctuations of the currency market
Pointing to the government’s lack of role in creating currency fluctuations, Samii said: The central bank should prevent currency fluctuations by injecting positive and negative in time in the turmoil, which unfortunately we do not see this action by the government, which brings a negative score.
He told Iran Watch: Considering that 80% of the currency is supplied by the Central Bank, then the prices are artificially kept low, but this is not an economic work and it is better than the real prices. The dollar rate was about to reach 40 thousand tomans.
In the end, Samii stated: If the various and rent-generating rates, including 4200 Toman currency, Nimai currency, Sena passenger currency, Sena national card currency, exchange rate currency, domestic bank account currency, foreign bank account currency, combined market currency, Exchange rate of ets or electronic trading system, currency at the agreed price, currency at the informal market price are removed, we can expect a dynamic economy for the country with real prices and units.
Watch site