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Iran sanctions relief a 'limited' boost: report

Published on Dec 20, 2013 12:15 AM

WASHINGTON (AFP) - The economic benefits of an interim nuclear agreement between Iran and world powers are already being felt in the Islamic republic but the relief is limited, a report said Thursday.

A deal struck in November to suspend international sanctions for six months has seen an improvement in Iran's stock market and a drop in inflation, said the Institute of International Finance, which represents 450 banks and global financial institutions.

In particular, the gap between the black market and official exchange rates for the Iranian rial have narrowed, "falling from an average of IR 35,675 per dollar in June to IR 29,700" as of December 16, the report said.

"Real GDP could stabilize and even rise modestly in the current fiscal year," which ends on March 20, 2014.

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