The country's foreign exchange reserves fell sharply

The country's foreign exchange reserves fell sharply
  • 2021-04-13
  • .
Chairman of the Iran-China Joint Chamber of Commerce: Both the impact of domestic and foreign policy on the economy should be minimized. We have to solve for ourselves once and for all that if the first priority of the country is the economy, all our behaviors should be in a way that improves the living conditions of the people and the economy.

According to the International Iranian Stone Exhibition, Majid Reza Hariri said about the impact of possible lifting of sanctions on the country's economy: "Our economy is strongly affected by sanctions pressures. According to statistics published by international forums, our foreign exchange reserves have sharply decreased and available currency The central bank is severely limited. It is necessary for trade to have currency, and we will have problems when the currency is not available to the central bank or the importer.

He added: "Sanctions severely restrict us in both oil and non-oil exports. Sanctions have the greatest impact on our foreign trade. When foreign trade is in trouble, we are in trouble both domestically and in the field of production, as we have seen in the past year in all areas related to people's livelihoods.

"A large part of these problems are due to sanctions pressure," Hariri said. Other parts are related to the fact that our policymakers always put the country in a state of waiting for the pressure of sanctions to be lifted or not. This uncertainty exists in our business and economy and causes us to always have a one-stop shop. Four years ago, our eyes were on Vienna every day, what is happening in a hotel, and now we are in the same situation again.

He added: "In any case, the effect of this issue on our economy should be minimized." If we can solve the problem of sanctions in general, it is the best case, but if it is not possible, we should have a plan for this case and think about how the country should be governed in the conditions of sanctions. What is important is to have a plan for different situations.

The head of the Iran-China Joint Chamber of Commerce added: "For the form of sanctions, the imposition of sanctions, the intensification of sanctions and the lifting of sanctions each require a specific reaction from the policymaker." If sanctions are removed from our economy and managed properly, the situation could change dramatically today.

He added: "Different scenarios may occur, but we must build our economy in such a way that the effect of sanctions on it is minimized." This is a principle. After four decades, we must conclude that our economy is always subject to foreign aggression and strongly influenced by politics. Either we have to change our policies in favor of our economy or we have to prepare our economy for the conditions of maximum influence of politics.

In response to the question whether today is the time for infrastructure work in the economy or not, Hariri said: "In the current situation, our economy is like a disease that is in the emergency situation and it is not possible to build infrastructure for it." Even if our foreign exchange resources are available to us today, because according to international statistics such as the International Monetary Fund, it is so small and reduced that it has little effect. All this shows that we must think about the immediate rescue of this economy. But in the end, we have to think about minimizing the impact of politics on the economy, which means that if we are under sanctions again, the same thing will happen to us again.

Referring to the a priori problem of inflation in Iran's economy, he said: "We already had a sick economy that always had double-digit inflation. This economy, which is itself inflationary, faces a double problem when it is under various pressures." In my opinion, having different scenarios for different situations can be a cure for our economy so that we are always ready to implement what predetermined programs in the economy in different situations.

Pointing out that it is said that internalization should be done to solve problems, Hariri said: "If any product can be produced economically, it is the right thing to do, but can any production be economical?" In this case, expert work should be done to determine in which cases we should do production work and in which cases we should find reliable sources for import.

"In the long and short term, we need to think about bilateral, regional, multilateral and international trade agreements so that we can integrate into the global economy so that they can not easily build a wall around us and limit us," he said. Our economic policy-making relationship with the world has been severed, it is easy to boycott an economy that has no connection with the world and no one but itself suffers from sanctions.

He added: "This situation must be eliminated, that is, we must make the cost of sanctions on our economy to the whole world." This requires that we be able to increase our economic ties with the countries of the region, international organizations, international multilateral treaties such as the WTO, and combine that they can not easily exclude us from the international economic scene. If they succeed in ousting us, our economy will become a local economy in which only we will suffer from sanctions.

The head of the Iran-China Joint Chamber of Commerce reminded that both the impact of domestic policy and the impact of foreign policy on the economy should be minimized. We have to solve for ourselves once and for all that if the first priority of the country is the economy, all our behaviors should be in a way that improves the living conditions of the people and the economy.

Referring to the stances on the Comprehensive 25-Year Cooperation Plan between Iran and China, he said: "All the stances on the Comprehensive 25-Year Cooperation Plan with China were political. Unfortunately, the stance of a large part of those who agree with it is influenced by political stance." They think that this program will solve all our problems in the international arena, and that the opposition of those who oppose this program is from a political perspective. From an economic point of view, one cannot oppose cooperation with a large international economy.

Hariri concluded: "Therefore, the opponents of the comprehensive program of cooperation with China also have a political view, that is, they have a problem with the current system." Those outside the country who are thinking of overthrowing this regime, and those who are opposed to and critical of domestic policies at home, are expressing their opposition to the Iran-China cooperation program. This is the perspective we always suffer from the interference of politics in the economy. No one has ever criticized the program economically.