Iranian women walk by as a shopkeeper in the background waits for customers at his shop in a bazaar in Tajrish northern Tehran, Iran, Tuesday, July 7, 2015. (AP Photo/Vahid Salemi)
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How to spend $100 billion may sound like a pleasant problem to have, but it is one of several economic policy headaches looming for Iranian President Hassan Rouhani after this week's nuclear deal promised to lift sanctions crippling the economy.At the same time, spending the reserves quickly could create bottlenecks in Iran's creaking economy and threaten another spike in inflation, which authorities have only recently wrestled down to around 16 percent from above 40 percent two years ago.Keen to get back into foreign markets after the lifting of the sanctions, Iranian exporters want the central bank to help them compete by cutting bank interest rates, which are still above 20 percent, a legacy of the sanctions era.The central bank has been reluctant to ease policy quickly, however, and may remain so even after sanctions are removed. Rouhani's team will face similar trade-offs as it tries to attract foreign capital and technology to Iran, a key part of the government's post-sanctions economic strategy.
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