Iran: President opposes interest rate rise as gold price surging

Minister of Economic Affairs and Finance Shamseddin Hosseini said on Wednesday that President Mahmoud Ahmadinejad is opposed to a plan which calls for paying higher interest on interest-bearing accounts to encourage people to deposit their savings with banks in a bid to control gold and foreign exchange markets, which are currently in turmoil.

Over the past few weeks, a wave of panic buying by Iranian households and small investors has swept gold and currency markets, and the cash floating around has thrown the markets into total disarray, forcing officials to adopt stopgap measures to curb volatility.

On Wednesday managing directors of state and private banks, the economy minister, and a number of other ministers attended a special meeting of the Majlis Economy Committee to examine the situation in gold and currency markets.

Posted by admin on Jan 19 2012. Filed under Gold price. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry