Jan.21, 2010, 04:59 AM EST, Source: Associated Press
Iran is limiting daily cash transactions and account withdrawals, a move it says it aimed at fighting money laundering but which analysts believe aims curbing inflation by limiting liquidity in the market.
State radio quoted Central Bank Deputy Governor Asghar Abolhasani on Thursday as saying the cash amount an account holder may withdraw from the bank on any given day is limited to 150 million Rials, or about $15,000.
Finance Minister Shamsoddin Hosseini told a conference Wednesday that "controlling the cash" would serve to battle money-laundering.
Analysts say the move however is more aimed at cutting inflation by limiting liquidity in the market. Iran has been dealing with high inflation and its economy is in shambles, in part because of sanctions.