More factories will go bankrupt with currency depreciation

Feed: 2844 - Date: 4/16/2018 - Views: 654

A member of parliament’s plan and budget committee said, “The production will decline and more factories will go bankrupt by continuing the increasing trend of exchange rate.”

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According to Tasnim News Agency, referring to the fluctuations of exchange rate in recent weeks, Gholamali Jafarzadeh Iman Abadi said, “The continued increase in exchange rate indicates the government’s weakness in controlling the market. Therefore, the government should announce the technical solution for controlling the exchange rate rather than being angry, giving mottos, and talking.”
 
Stating that a large amount of foreign currency was transferred out of the country during Nowruz holidays and the last days of the year 1396, the member of plan, budget and calculation committee of the parliament added, “The non-programmed injection of foreign currency into the market by the Central Bank and imposing taxes failed to control the exchange rate market and only led to the saturation of the market and the continual upward trend of foreign currency.”
 
The continuing upward trend in the exchange rate is in contrary to the motto of 1396 and 97.
 
The parliament member of people in Rasht, emphasizing that the continuing upward trend in the exchange rate is in contrary to the motto of 1396 and 97, continued, “The continuity of the process has disrupted the economy of the country and increased the recession, and the foreign products dominate the domestic ones, and domestic goods will no longer have the capability to compete.”
 
He told the parliament, “The motto to support domestic goods cannot be defendable with the continuation of the current trend because all these factors will lead to the failure of the domestic market and production, and the inflation rate will increase from one -digit to two -digit figure, and the several years of government attempts will be eradicated.”
 
More factories will go bankrupt with currency depreciation.
 
Jafarzadeh continued, “The production will decline and more factories will go bankrupt by continuing the increasing trend of exchange rate, and it will not be a good year for domestic production.”
 
Pointing to the start of the parliament sessions from next week, the member of plan, budget and calculation committee of the parliament said, “The specialized committees such as the economy and budget one should discuss this issue in an special team work next week and find a solution to organize the exchange rate market.”

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