Thursday, January 21, 2010

Iran Limits Cash Withdrawals

Iran today began limiting the amount of money individuals can withdraw daily from their bank accounts. The officials said the move was to combat money laundering. The limit was put at 150 million rials (roughly $15,000) a day.

Iran’s Finance Minister Shamsoddin Hosseini told a conference Wednesday that controlling the cash would serve to battle money-laundering and financial terrorism. He did not elaborate what type of money laundering or financial terrorist operations exists in the country that required such action by the government.

Some Iran analysts believe the move was an attempt by the government to slow the flow of cash in order to curb inflation.

President Ahmadinejad has also announced plans to lop off zeros from the the country's currency, arguing the value of rial was grossly undervalued. The move is also seen as an anti-inflation measure.

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