Week in Brief 09.02.2018

As extreme air pollution shuts down the schools once again for three days, the President announces the launch of a plan to reconstruct the transportation fleet. The plan permits the old commercial vehicle owners to replace their cars with a new one, paying 20% of its value, combined with another 30% of sixty-months loan from the banking system. The other half will be provided by the Government. Pointing the daily consumption of 88 million liter of gasoline domestically, President Rouhani emphasizes that this plan does not only consider the environmental issues but it also focuses on saving energy. In a press conference on Tuesday, he also noted that the Government has no budget deficit and the devaluation over the last weeks has not been done on purpose to compensate it, as some rumors suggested.

The Central Bank of Iran which is following a strategy to redirect the available cash in the market, offered the presell of 16 million gold coins to be delivered after six or nine months. Since the interest rate has been decreased the liquidity has increased, which is said to be the reason for speculation on the exchange rate.