The Minister of Economy says that the increase in the exchange rate of the dollar does not have an economic impact

The Minister of Economy says that the increase in the exchange rate of the dollar does not have an economic impact.

The Minister of Economy stated that the analysis of my colleagues at the Central Bank is not such that the increase in the exchange rate of the dollar has an economic impact, and it is different from what has been said.

Economic experts believe that the increase in the exchange rate, which has reached 58,000 tomans, cannot be solely due to political and military tensions in the region, and one of the main reasons for this growth is again the economic factors such as inflation. Inflation above 40% also affects goods like the dollar. Therefore, after 8 months of price stability, it shows its impact with the trigger of political tensions. Furthermore, the increase in the exchange rate also affects inflation.

For this reason, the Minister of Economy of our country announced in December of this year that controlling inflation is conditional on exchange rate policies in the Central Bank. He had told ILNA news agency that the set of factors affecting inflation includes both long-term factors, mainly monetary discipline and budgetary and monetary policies, and short-term factors related to the exchange rate. The government’s effort is to control both long-term and short-term factors that have an impact on inflation in order to achieve the goal of a 25% monetary growth ceiling in 2023.

After approximately 3 months of these statements and with the increase in the exchange rate of the dollar, Ehsan Khandouzi, the Minister of Economy, stated about the impact of this exchange rate growth on inflation control policies. He said that the central bank’s efforts are aimed at returning the exchange rate to previous levels, and recent market indicators and behaviors have shown that the central bank’s actions have been effective.

He added, therefore, we still hope that the previous prediction regarding inflation control in 1402 will be realized.

In response to the question that economists believe this increase in the exchange rate has an economic impact and there is a possibility of another increase, the Minister of Economy emphasized that the analysis of my colleagues at the central bank is not such that the increase in the exchange rate has an economic impact, and it is different from these statements.