Minister of Economic Affairs and Finance Tahmasb Mazaheri said in Dubai on Thursday that the hard currency rate depends on the prevailing market conditions and is determined by the supply and demand, IRNA reported.

Putting the rate of dollar at the fixed rate of rls 9,000, he noted that it should neither exceed nor be less than the indicated figure.

Addressing a gathering of 200 members of Iran`s commercial council in the Iranian club in Dubai, he reiterated that the market supply-and-demand is mainly responsible for the hard currency rate, adding that the government doesn`t interfere in it.

The minister noted that the government just presents the hard currency to the market or buys it.

Turning to the boost in inflation rate from 12 percent in 2001 to 15.8 percent in 2002, he said that the government is determined to reduce the inflation rate.

He reiterated that bank interest rates should also be reduced to adjust them to that of inflation.

Concerning the government`s privatization plan, Mazaheri said that assigning the private sector with the current affairs is growing.

He pointed to the banking, insurance and aviation sectors as examples, which were earlier out of the authorization limit of the private sector.

Mazaheri who arrived in Dubai on September 22 to attend the 58th annual IMF-WTO meeting left for Tehran this morning. The conferences of the two international economic bodies ended on Wednesday.