Iran-Inflation-Mazaheri
Governor of the Central Bank of Iran (CBI) Tahmasb Mazaheri announced late Tuesday that Oil Stabilization Fund (OSF) currently has close to seven billion dollars.
He told reporters that he had mentioned the same figure about two weeks ago, reported IRIB News.
Earlier deputy CBI governor, Hossein Qazavi, had said that OSF deposits dropped to eight billion dollars until August 22.
He explained that the fund had about $10 billion in the year to March 2007 and noted that about $10 billion were deposited during March- August, but $12 billion were later withdrawn from the fund for budget purposes.
In the year to March 2008, oil revenues witnessed a steep rise and a major portion of this was deposited in the fund.
Gross domestic product (GDP) registered a 6.2 percent growth in the year to March 2007 while the figure was 5.4 percent in the year to March 2006.
The oil fund was set up by the former Khatami government to fund state expenditures during periods of contingency.
Turning to inflation, Mazaheri, a former economy minister, said the rate stood at 19.1 percent in the month to November 21. The figure was 17.2 percent in the previous month.
In figures released on Wednesday, Central Bank of Iran announced that consumer prices rose to 19.1 percent in the year to November 21.
It further said that inflation is continuing a steady rise.
Consumer price index climbed 1.7 percent in the month to November 21 compared to figures for a month earlier. Inflation rate, the top bank said, was 16.8 percent in the month to November 21.
In a press conference on Tuesday, President Mahmoud Ahmadinejad stated that the government has a major plan to control inflation.
Iran, the world's fourth largest oil exporter, has made windfall gains from high oil prices in recent years. It expects to earn about $70 billion from oil exports from the year to March 2008.
Asked whether lending rates would be cut in the coming Iranian year, Mazaheri said the rate depends on several factors, particularly inflation.
"Money and Credit Council will decide next year about slashing lending rates," he concluded.
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