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In its latest report, Jihad Azour, Director of the International Monetary Fund’s (IMF) the Middle East and Central Asia Department, Iran’s economy is expected to shrink for the second straight year and inflation could reach 40% mainly in response to the US sanctions re-imposed against Iran’s oil sector.

 Key Quotes:

“Clearly the re-imposition of sanctions and the removal of the waivers will have an additional negative impact on the Iranian economy both in terms of growth and in terms of inflation, where inflation could reach 40 percent or even more this year.”

As Reuters reports: “The Iranian Rial official rate is set at 42,000 rials to the U.S. dollar, but its market rate stood at around 144,000 against the U.S. dollar on Sunday.”