Iran central bank sets new bond redemption rate
Azerbaijan, Baku, March 4 /Trend M. Moezzi/
The Central Bank of Iran (CBI) has announced the under one year redemption rate for participation bonds will be 18 percent and the over one year rate will be 19.5 percent, Fars news agency has reported.
In a circular sent to banks, the CBI says participation bonds' annual interest rate will be 20 percent.
The higher interest rates are part of the government's effort to make investing in government projects more attractive. The oil ministry's offering of bonds to the public was successful earlier this week.
Iran is dealing with loose liquidity as the public has rushed to buy foreign currency and gold coins in response to worries about the country's economy and international sanctions.