CBI to allocate $3b to production units
The Central Bank of Iran (CBI) will provide 2 quadrillion rials (approximately $3 billion) in cash to the country’s production units, according to the CBI governor.
The CBI has plans to help providing liquidity to production units, especially small- and medium-sized enterprises (SMEs), Mohammadreza Farzin said on Monday, reported IRNA.
“For more than a year, we have been looking for a base for our policies in the currency area, and we will bring the currency to a unified market or an exchange market based on the auction price,” the official stated.
Farzin went on to say that in the field of exports, measures have been designed to offer more facilities to Iranian exporters.
“The upcoming reforms by the CBI will be gradual, as we believe that there should be no shock to Iran’s economy, because once a shock is created, the side effects resulting from it cannot be treated,” he noted.
The CBI is working to increase capital, and has announced that bank capital will increase by 2.5 quadrillion rials (approximately $3.75 billion) this [Iranian] year, and each state-run bank must have at least 200 trillion rials (approximately $300 million) in capital by the end of the year (March 20, 2025), Farzin added.
The CBI governor, noting that the most burden has been put on the banking system to provide financing, emphasized, “We are pursuing non-inflationary financing, and we are working with the Ministry of Economy to attract foreign investment.”
Farzin said, “If we can issue bonds valued at $2 billion needed for financing, we can do a lot of great things.”
“Recently, the sale of bonds has begun by the CBI, and the mechanisms for this have been implemented since last year,” the official stated.