EghtesadOnline: The government’s debts to the banking system currently accounts for 10% of the money supply and the banks’ debts to the Central Bank of Iran constitute 22% of the monetary base. Without doubt, budget deficit is the source of this huge debt.
EghtesadOnline: The removal of cheap foreign currency and hidden subsidies and their impact on inflation are really a minor concern; the main worry is lack of information to determine eligibility criteria and identify target population groups for subsidy allocation, Kamran Nadri, an economic expert wrote in an article published in the Persian exconomic daily Arman-e Melli. Translation of the full text follows:
EghtesadOnline: Non-compliance with the requirements of the Financial Action Task Force could result in the closure of all Iranian bank accounts around the world, including individuals and embassies, an expert on international relations said, citing comments by officials in the Foreign Ministry’s Economic Department.
EghtesadOnline: Considering the growing Iran-US tensions, Tehran needs to refrain from any measure that could lead to greater pressure on the country and could sway the European parties to the 2015 nuclear deal toward the Trump administration, an expert on international relations said.