Failure of JCPOA will raise the exchange rate in Iran: Expert
Referring to Iran’s economic conditions in case the JCPOA revival negotiations failed, Morteza Ezzati told ILNA that “if the failure of the JCPOA is officially announced, there will be an expected shock in expectations and it can raise the exchange rate. The important point is that the agreement to revive the JCPOA will have significant benefits for the country’s economy such as reducing the cost of trade and imports, facilitating the exports process, most importantly increasing foreign exchange earnings and increasing oil sales, and improving the investment and business environment, etc. The economic situation of the country will change, but if the Iran deal fails, these benefits will be unattainable.”
He said that the failure of the JCPOA or the agreement to revive it is not easily predictable and with the slightest twist on both sides, the fate of the JCPOA will change.
The revival of the JCPOA can result in increasing foreign currency revenues and releasing the blocked funds, he said, adding, “The facilitation of the process of currency transfer from abroad to the country will cause the elimination of currency fluctuations in the country and foreign currency market will be stabilized.”