Iran's First Vice President Mohammad Reza Aref has signed a decree for the repayment of $1.1 billion (46.756 trillion Iranian rials) to the International Monetary Fund. The government press service announced that this move aims to stabilize the national currency.
“The decision to repay this debt is crucial for stabilizing our national currency,” Aref said in the announcement.
The repayment comes in the wake of significant economic fluctuations. After the 2015 Iran nuclear deal led to the lifting of most Western sanctions, Iran saw its inflation rate decrease from 36.6 percent in 2013 to 7.2 percent in 2016, according to the World Bank. However, the situation reversed sharply after the US withdrew from the deal in 2018 and Western sanctions were reinstated. By the end of 2023, inflation had surged to 44.6 percent.
Iran's new president, Massoud Pezeshkian, has identified income growth and the strengthening of the rial as his top policy priorities.
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Based on materials from TASS