01 July 2017 - 11:09

Minister Calls for Setting Up Profit Rate Correction Hq

TEHRAN – Minister of Economic Affairs and Finance Ali Tayebnia has called for formation of the headquarters for correction of profit rate
News ID : 71696
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Addressing the inaugural session of the 27th Annual Conference on Monetary and Foreign Exchange Policies, Tayebnia said Iran has been successful to establish brokerage relationship with more than 240 foreign banks.

Focusing on the 27th Annual Conference on Monetary and Foreign Exchange Policies, Tayebnia said the seminar has turned into an effective institution for debate and dialogue on the most important economic issues of the country.

He said for the current Iranian calendar year of 1396 (2017-18), which is the initial year of the Sixth Five-Year Economic Development Plan (2017-21), the average economic growth rate of eight percent, one-digit unemployment rate and one-digit inflation rate has been targeted.

He noted that last year, government had been successful to eliminate the inflationary and deflationary crises, hitting the country since the years 2012 and 2013.

The minister said as far as short-term measures are concerned, last Iranian year of 1395 (2016-17) marked the year of non-inflationary vibrancy with an economic growth rate of 12.5 percent and an inflation rate of nine percent. Major portion of the economic growth rate was caused by increase in production and export of oil, he added.

"However, without oil economic growth reached 2.9%, 5.4% and 5.6% in the second to fourth quarters of the year from minus 1.8 percent in the first month of the year."

Looking into the issues on the long-term bases, it should be claimed that low percent of growth, harsh fluctuations, and tiny share of productivity in growth have turned into a serious problem for economy, said the minister, adding that average growth rate of 2.3 percent cannot address social demands and prepare the ground for elimination of poverty. "So, we will have no way but jumping to higher levels and sustainable economic growth so as to end economic vulnerability and make it resistant, while eliminating unemployment ."

Tayebnia said maintaining economic stability and tranquility is the most important factor for achieving economic growth. "Public trust in government has been the most important achievement of the 11th government. All should join hands to safeguard the achievement."



.Elsewhere in his address, Tayebnia said one more key measure taken by government over recent years has been lifting restrictions facing the banking system. This was achieved following implementation of the Joint Comprehensive Plan of Action (JCPOA) and elimination of sanctions, which led to establishment of banking relations, including establishment of brokerage relationship and facilitation of banking exchanges, he added.

Tayebnia said at time of sanctions, only 30 small and risky banks cooperated with Iran but today, more than 240 banks have brokerage relations and in the near future, relations will be established with majority of banks.

He also hailed government success in banking domain such as controlling inflation expectations, controlling forex market, ensuring falling inflation rate and higher economic growth rate.


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