Iranian President Mahmud Ahmadinejad has agreed to increase bank interest rates in an effort to halt a fall in the value of Iran's currency.
Tavakolli, Head of Parliament's Research Center, said this week that the situation of the gold and currency is going to bankrupt the economy
Economy and Finance Minister Shamseddin Hosseini was quoted as saying that Ahmadinejad had approved a decision to raise interest rates on deposits to up to 21 percent.
Ahmadinejad, who is facing a political test of his leadership in Iran's parliamentary elections due in March, had previously vetoed efforts by the Iranian central bank to increase rates.
The Iranian currency, the rial, has lost about 50 percent of its value over the past month
New Western sanctions targeting Iran's vital oil exports and its central bank have exacerbated fears about the Iranian economy and increased a run on hard currency.
The Iranian currency, the rial, has lost about 50 percent of its value over the past month.
compiled from agency reports
Copyright (c) 2012 RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave., N.W. Washington DC 20036. www.rferl.org
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