Central Bank of Iran explains inflation control in country

Business Materials 6 June 2019 14:36 (UTC +04:00)

Baku, Azerbaijan, June 6

By Elnur Baghishov – Trend:

The main purpose of keeping open market operations and short-term interest rates in Iran under check is to control inflation, Abdolnaser Hemmati, Governor of the Central Bank of Iran said on his Instagram account, on his Instagram account, Trend reports.

According to Hemmati, this is due to the balance sheet of the Central Bank of Iran having been unable to control the inflation in recent decades.

He added that the Central Bank is also balancing the balance sheet of banks.

"Until today, the price of government securities was determined by market representatives, since the Central Bank of Iran had no permission to buy these securities. This increased certain risks," he said.

Hemmati also said that these risks diminished with the Central Bank’s intervention in this issue and with the application of open market operations.

Hemmati also said that the state prints securities based on its budget needs, the economic circulation and financial and debt requirements.