Trump’s election victory not affecting Iran’s economy, says Central Bank chief

Governor of the Central Bank of Iran (CBI), Mohammad-Reza Farzin said Iran’s economy or its financial growth will not be affected by Trump's coming to power as the next US president.

News ID: 5390

Date: 10 November 2024 - 07:59

TABNAK, Nov, 10 : Trump as president does not have direct effects on Iran's economy because we do not have any direct commercial, monetary and financial cooperation with the United States and Europe, Farzin told during a televised interview on Saturday night.

The CBI chief, however, acknowledged that global economies and financial markets can feel the heat in case of the change in policy by the incoming US administration.

As you have seen, cryptocurrencies reacted to the arrival of Trump with Bitcoin experiencing a 20% increase, but our exchange rate only reacted by 1%, he said, arguing that part of the fear in markets was caused by the policies of Trump’s previous tenure.

Farzin, although, warned about a severe impact on global markets as well as the economies of China and Europe if Trump renews his past policies related to trade and commerce, especially his tariff regime.

His remarks are in line with western financial experts who have also warned that Trump's victory will lead to a risky time for the United States and rest of the world and any attempt by him to impose higher tariffs can lead to higher prices of goods for general consumers.

On the domestic front, the head of Iran’s Central Bank expressed hopes that the country’s inflation will decrease to 30% by the yearend and then to 20%.

Today, our dependencies have decreased a lot and we have expanded regional interactions, and in the BRICS too, we have taken forward good activities and already made necessary preparations for the beginning of this era, Farzin underscored.

"Part of our cooperation with the BRICS member countries has been implemented and we have removed the dollar from commercial transaction with some countries," he said, adding that although Iran is waiting to see America’s policies toward the region, the country's forex reserves have increased and it has taken all necessary steps to manage the economy.

IRNA