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Central Bank of Iran implementing measures to control inflation rate

Business Materials 4 September 2020 09:05
Central Bank of Iran implementing measures to control inflation rate

TEHRAN, Iran, Sept.4

Trend:

The Central Bank of Iran (CBI) has announced that its has implemented efforts to control inflation in the country and preserve the value of national currency, Trend reports via Mehr News Agency.

The Central Bank of Iran's recent announcement about the issue indicates that it has started to implement a target plan for 22±2 percent inflation rate for next Iranian year (started March 21, 2021).

The Central Bank of Iran has increased the interest rate of bank savings accounts by 1 percent to 14 percent, to maintain the interest rate and reduce the banks' surplus reserves as part of its strategy to control the inflation rate.

In regards to financing the budget deficit, the Central Bank of Iran has continued the sale of government debt bonds and sold around $14 billion worth of bonds.

The CBI has also approved to issue deposit bonds to manage the interbank market reserves and would set the price based on annual inflation rate.

The country's GDP statistics during the first three months of the current Iranian year (started March 20,2020) are not available but 5.2 percent increase of stock exchange index and trading industrial products show that the industrial production has improved.

Iran's inflation rates has increased during April 20 to July 21 due to effect of COVID-19 and reduce of country's foreign currency revenue that has made it necessary to control the inflation.

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