Bloomberg; “Iran’s central bank Governor Valiollah Seif said he’s reversing policies introduced under former President Mahmoud Ahmadinejad that led to a surge in money supply, to curb one of the world’s highest inflation rates.
Seif, in his first interview with an international news organization since taking office in August, said President Hassan Rouhani’s cabinet has agreed to separate monetary and fiscal policies. That will allow the central bank to focus on “controlling liquidity and bringing down inflation.”
Rouhani inherited an economy in recession as sanctions against Iran’s nuclear programweakened its currency and accelerated inflation to about 40 percent in September. While the central bank will struggle to alleviate the effects of sanctions, analysts at Eurasia Group and the Economist Intelligent Unit have said Seif can resist government policies to provide cheap credit, a policy introduced under Ahmadinejad, which led to a surge in the ratio of bad loans to 15 percent.” Full Article Here.