Iran lacks money
Iran Central Bank head seeks import reduction
An Iranian state-owned newspaper quotes the country’s Central Bank governor as saying imports should be decreased in response to the sanctions imposed on Iran over its nuclear program.
Mahmoud Bahmani was quoted by the Iran daily on Tuesday as saying the focus should be on importing “necessary goods,” and that the sanctions would help boost domestic production.
http://www.pbs.org/wgbh/pages/frontline/tehranbureau/2010/08/selected-headlines-209.html
Khamenei has asked the government of President Mahmoud Ahmadinejad to “seriously apply... the plan for removing subsidies,” state news agency IRNA reported late Monday quoting the all-powerful leader as telling members of the government, including Ahmadinejad.
“The people have embraced you (Ahmadinejad) for slogans such as those seeking justice, adherence to religion and fighting arrogance,” Iran's spiritual guide added.
“Thus, you should attempt to maintain these policies with determination and intensity.”
http://www.pbs.org/wgbh/pages/frontline/tehranbureau/2010/08/selected-headlines-211.html
Right decision, but stupid arguments.
However,
The parliament approved $20 billion in cuts, or just half of the savings demanded by Ahmadinejad’s government. Lawmakers have said they feared the full $40 billion in cuts would have prompted a 50 percent surge in inflation.
http://www.businessweek.com/ap/financialnews/D9EBMT480.htm
The next step is to change the exchange rate otherwise they will destroy the domestic companies that are dying under the massive import of cheap Chinese products, and terrible unemployment I guess that it is about 30 %!
The exchange rate today is 1 $ = about 10 500 Rials, the new exchange rate would be 1 USD = 30 000 IRR, but I think that they only dare to make it 20 000 IRR.
Iran will soon implode in front of our eyes.
...imports should be decreased in response to the sanctions imposed on Iran over its nuclear program.Freakin' geniuses, aren't they? Imports should be decreased as a *result* of the sanctions, ya Shi-iteheads!