Seif backs policies on CCTV America

The domestic economy is currently on the right track, said Central Bank Governor Valiollah Seif in an interview with CCTV America on Sunday.

High capacities can doubtlessly be created in the economy which would make the future much better than it is now, Seif said when asked to reflect on the future of Iran’s economy in terms of the situation of the working class, inflation, and the value of the rial.

He said there had been achievements. “The highly educated young population, as an example, is a valuable asset.”

Regardless of the results of the nuclear negotiations, the economy has been planned in such a way that gradual improvement will be attained, the official said.
On April 2, Iran and six world powers (The United States, France, Britain, Russia, China and Germany) clinched a framework deal in Lausanne, Switzerland over Iran’s nuclear energy program. The negotiations got underway in Vienna April 22-23. They are expected to reach a final long-term agreement by the self-imposed June 30 deadline that could end all nuclear-related sanctions on Tehran.

He did, in any case, admit that if the negotiations bear positive results, it would benefit the economy and result in growth, also inflation and unemployment rates will decrease. “However, the budget is based on previous plans considering that the constraints will remain,” he said.

Seif lauded the Rouhani administration to address the economic troubles and said that “not all the troubles the country is facing are due to sanctions.”
Even before the sanctions were imposed problems such as recession and high inflation existed. “The Rouhani administration managed to turn the situation around by adopting appropriate monetary and fiscal policies.”

As a result of the administration’s efforts, inflation fell from 40 percent to well below 20 percent. He also projected that the CBI may further curb inflation to a single digit; a goal that can be achieved in “two years”.

“The people who have lost feeling of stability because of high inflation rates might say that they do not see tangible effects of lowered inflation in their lives,” Seif said in answer to how the economic improvements have translated for working class families. “That is because they expect prices to drop and know that to be synonymous with falling inflation. They are unaware of the fact that by lowering inflation the rate of price increase has slowed.”

The CBI governor added that the least that can be said is that prevention of irrational fluctuations has brought calm to the life of the people and that is easily noticeable.
According to Seif, Iran’s economy will continue to improve irrespective of the nuclear negotiations.

By Financial Tribune