Monday, August 27, 2007

Iran's central bank chief resigns

From Gulf News:
Ahmadinejad, whose policies have been criticised by economists for fuelling inflation, has already changed the oil and industry ministers. Some analysts said those cabinet members had, like Sheibani, questioned some government policies.
Economic analyst Saeed Laylaz earlier said he expected Sheibani to be replaced because the governor opposed Ahmadinejad on issues such as the president's call to cut interest rates.

Bank rates were cut on the president's recommendation in June, a move criticised by economists at a time when inflation has surged to 16 per cent or more.
Ahmadinejad vowed to share out Iran's oil wealth more fairly when elected in 2005 but economists have blamed soaring prices on his government's spending policies which have been fuelled by windfall revenues from high oil prices.

Although public grumbling about the cost of living has risen, analysts say the government has a cushion of petrodollars to keep the economy growing, even if below potential.
No explanation was given for the resignation, which had been widely predicted in the Iranian media.

But Sheibani had reportedly been at odds with Ahmadinejad over a surprise government decision on May 22 to cut interest rates.

Both Sheibani and Economy Minister Davoud Danesh Jaafari were reported not to have been consulted over the decision, which many economists considered highly unwise in an economy which was already facing inflationary pressures.

Domestic politics is also heating up in Iran up as the country enters a crucial period leading to elections for the conservative-controlled parliament on March 14, 2008 followed by presidential polls in summer 2009.

The economy will be a top election issue and Ahmadinejad has been criticised for Iran's high inflation and for ploughing windfall revenues from high oil prices into expensive infrastructure projects.

Both the industry and oil ministers issued stark warnings to Ahmadinejad over his economic policies after they quit.



Blogger Polcham said...

It is not comforting to see that you have no concern for violating copyright.

May I suggest that you cease and desist copying complete articles and comply with the fair use doctrine!

You can see how it is properly done at
News And Views

2:11 PM  
Blogger John B. Chilton said...

Hi Polcham,

I'm not copying complete articles. My practice is within fair use. I extract the parts that interest me, and point readers to the full article where readers choose to read other articles and ads.

I often add commentary, though not always.

Are you posting the link to News and Views to promote a Polish news digest? Or is it simply the format you'd like to see me use?

2:18 PM  

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