No inflation expected after unfreezing Iran assets

TEHRAN July 26 (Shana)–Unfreezing billions of Iranian cash by the sanctions relief, following the July 14 deal the country clinched with world powers in Vienna, will not cause any economic shocks or inflation in Iran, the governor Central Bank of Iran said.

In a televised interview Saturday night, Valollah Seif said the unfrozen assets will be deposited at the Treasury as the result of arrangements agreed upon at the end of the recent nuclear talks between Iran and the P5+1group of countries.

“Despite the sanctions and restrictions, Iran’s economy is in a predictable state,” said the top official. “It will take 4 to 5 months for the removal of sanctions. Once the sanctions are lifted, circumstances [in Iran’s economy] will improve and become more competitive.”

He rejected speculations that Iran’s frozen assets cross 100 billion dollars, saying only a total of $29 billion of Iranian cash has been blocked by the western sanctions on the country.

Following the nuclear deal, President Rouhani issued a directive to lock the billions of dollars that will be released to Iran and use them only for promoting industrial output as well as the development of the country’s infrastructure.

Iran and the P5+1 announced at the end of marathon top-level talks on July 14 that they had agreed on certain restrictions over the Iranian nuclear energy activities in return for the removal of certain economic sanctions against the country.

The removal of sanctions – which is expected to start before the end of 2015 – will lead to the unfreezing of Iranian assets that had been blocked in overseas accounts over the past years.