Member of Parliament: Over $30 Billion Exited Iran in the Last Months of 2017

The head of the Economic Commission of Parliament attributed the rise in currency prices to the "unprofessional and non-specialized decisions" of the Central Bank and stated that "over $30 billion has exited the country" in the last months of the previous year without providing details. Mohammad Reza Pourabrahimi, in an interview with ISNA on Tuesday, April 6, criticized the Central Bank's actions to control currency prices in the last weeks of 2017 as "completely unprofessional and non-specialized." He also mentioned that "$20 billion is held outside the banking network." He added, "When such an unprofessional situation exists in the country's economy... people are encouraged to buy and hold currency, which does not align with the real supply and demand in Iran's economy and increases volatility." The head of the Economic Commission did not specify how this currency exited Iran. Part of Iran's state currency exits through a quota allocated to travelers going abroad. For instance, Mohammad Baqer Nobakht, head of the Planning and Budget Organization, stated on December 23, 2017, that Iranian travelers take $9 billion out of the country annually. Meanwhile, limiting currency sales exclusively to travelers with travel documents was one of the Central Bank's measures to control currency prices in Esfand. Pourabrahimi's remarks come as officials from Hassan Rouhani's government had previously accused the former government of having "exported billions of dollars of currency under the pretext of market control" or allocated it to "specific currency exchange offices." For example, Es'haq Jahangiri, Rouhani's first vice president, had previously stated that in the former government, "in less than 18 months, about $22 billion of currency was exported under the pretext of wanting to control its price domestically and was sold in the markets of Istanbul and Dubai." In Esfand of last year, following the dollar price increase to nearly 5,000 tomans, the Central Bank of Iran implemented three financial measures to stabilize the dollar price. These included temporarily raising interest rates on some bank deposits to 20%, issuing currency-based deposit certificates at rates of 4% and 4.5%, and pre-selling Bahar Azadi coins as short-term programs announced by the Central Bank. However, the price of each US dollar in the free currency market in Iran surpassed 5,000 tomans on Tuesday, reaching at least 5,025 tomans for the first time. Meanwhile, Mahmoud Sadeghi, a representative from Tehran, tweeted: "To inquire about the Central Bank's program for controlling oversight of the currency market, I tried to contact the relevant officials; apparently, they are still on Nowruz holiday!" In his interview, the head of the Economic Commission also suggested creating a foreign currency deposit account and having state banks guarantee the return of currencies deposited in these accounts. According to Pourabrahimi, this action would bring a significant amount of currency back to the banking system. He also stated that currently, the rise in currency prices has "no logical basis" as Iran's currency resources are two and a half times its currency consumption. Some analysts have also stated that the rise in currency prices does not solely have economic reasons, and ambiguity regarding the fate of the Vienna nuclear agreement and the escalation of conflicts in the region are among the main reasons for the increase in currency prices. Meanwhile, Fereydoun Khavand, an economic analyst and university professor, noted in a memo for Radio Farda on February 16 that several variables affecting Iran's currency market are beyond the Central Bank's reach. According to Khavand, currency market players are watching the fate of the "JCPOA" and will perceive a potential US exit from this agreement as a warning sign for further destabilization of the rial. In recent days, several Iranian parliament members, including Jalal Mirzaei and Jalil Rahimi, have regarded John Bolton's appointment as White House National Security Advisor as a "sign of serious determination" from the US President to exit the JCPOA or "increase pressure on Iran to amend this agreement." John Bolton, who briefly served as the US ambassador to the UN during George W. Bush's administration, is known for his hardline positions against the Islamic Republic and North Korea. Donald Trump, who has repeatedly criticized the Iran nuclear deal with six world powers, has stated that if the "catastrophic flaws" of the JCPOA are not resolved, he will not extend the suspension of nuclear sanctions. The deadline set by the US President ends on May 12, which corresponds to May 22, 2018.