Raisi: CBI’s transparency encourages investors
Iranian President Ebrahim Raisi underlined that providing timely, quick, and clear information on foreign exchange issues by the Central Bank of Iran (CBI) will give more confidence to investors and businessmen.
He made the remarks during the 63rd annual session of the Central Bank’s General and Extraordinary Assembly on Saturday after listening to the eight-month performance report by CBI Governor Mohammad Reza Farzin, according to president.ir.
Offering some recommendations for improving the performance of the Central Bank, the president added, “All decisions and actions in the foreign exchange sector should be aimed at disciplining the foreign exchange market and guiding it towards compliance with the policies of the Central Bank.”
“Every decision of the central bank in the foreign exchange system is mandatory and all institutions and companies should be obliged to comply with these decisions,” said the chief executive.
Emphasizing sustainable inflation control and liquidity control due to the direct impact of these two economic phenomena on the banking and monetary system of the country as well as the performance of entrepreneurs and investors, Raisi expressed appreciation for the central bank’s measures in order to successfully control liquidity growth.
“Inflation control and liquidity control should be achieved not by creating stagnation but through production growth because recession is harmful to the country’s economy as much as inflation and liquidity growth.”
The president highlighted the need for serious monitoring and special sensitivity towards bank overdrafts and the planning to prevent this practice in the Central Bank, while stressing the necessity of obtaining appropriate guarantees from banks in exceptional cases.
“The central bank should be careful in reviewing overdrafts so that these evaluations are based on true and real information, not false and illusory information,” he underlined.
Pointing out that bank balance sheets are a necessary but insufficient tool for monitoring the performance of banks, Raisi obliged the central bank to examine the effectiveness of the Iranian banks’ extension of bank loans in production, and if the desired goals are not met, to reconsider and take action in this field.