INFLATION: Artificially Low Exchange Rate Promotes Imports and Goods Smuggling

The central bank’s policy of holding the foreign exchange rate steady at nearly 8,000 rials to the dollar has been fueling rampant imports, but legal and illegal, Radio Farda’s Paris-based economic commentator Fereydoun Khavand. Due to the double-digit inflation, the prices of domestic goods have been going up, while the prices of imported products keep declining.