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Adeli: Indian Rupee Weakens Iran’s Economy

Seyyed Mohammad Hossein Adeli

Sanctions on Iran’s economy ban foreign companies from sending money to the country’s Ministry of Petroleum for buying crude oil. During the recent years, major bank accounts of Iran have been frozen by the European governments, so Islamic Republic of Iran can no longer accept incoming wire transfers.

Currently, the Iranian government is accepting local currencies from its oil buyers. India, China and Japan pay Iran in their own currencies stored in local banks and financial institutions.

Seyyed Mohammad Hossein Adeli, an Iranian politician, says accepting local currencies can make many problems for the nation’s economy. He suggests the Iranian government to stop accepting local currencies from its customers.

“As a matter of fact, Indian rupee is not a powerful currency in the world. At this moment, Iran has stored billions of rupees in Indian banks. During the recent three months, rupee has lost over 30% of its value against foreign currencies such as the U.S. dollar,” Adeli told local media on Sunday.

“On the other side, the Indian government doesn’t allow Iranians to invest this earning. Iran currently imports raw materials from India by spending its stored rupees in Indian financial institutions,” the Iranian economist added.

Adeli believes that economic sanctions should be lifted as soon as possible. “The condition of Iran’s economy is deteriorating on daily basis. The Iranian government cannot use its oil revenues to import goods and products from countries other than China and India. Unfortunately the mismanagements have led to serious problems threatening Iranian economy.”

Iranian analysts and economists have already urged the government to stop importing unnecessary products and goods in return of exporting cheap crude oil to the Asian countries. As a result, many factories and companies were forced to close down in Iran over the past few years. It is estimated that around 30% of Iranian youths are unemployed.

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