Fresh UN sanctions triggered by the snapback mechanism will fuel inflationary pressure and deepen economic strain, Alireza Kiani, head of the money and capital market committee of Tehran’s Chamber of Commerce, said Monday.
“If snapback is activated, the government must seriously reconsider its currency policies. With continued suppression of the exchange rate, more traders and producers will exit the market and capital flight will increase,” Kiani added.
The latest crisis is marked by worsening disruption in the circulation of money and capital, Kiani said.
“The private sector lacks access to resources and shows little incentive for reinvestment.”
