Iran's Central Bank reacts to MPs call for foreign currency interest payment
Tehran, Iran, Feb.6
The Central Bank of Iran has once again reacted to the parliament's call for paying back interest from foreign currency transactions, saying the interest will be paid to the treasury, when the CBI actually reaches a profit from the sale of foreign currency, Trend reports via IRNA.
The CBI issued an statement, which said "The Central Bank of Iran will delay the payment of interest from foreign currency transactions until there is profit from it, and due to sensitive effect of printing money on liquidity, any payment will be postponed."
"Therefore the Central Bank of Iran would try to provide more volume of foreign currency that is needed in the upcoming weeks and would make an effort to pay the differential from the sale," said the statement.
Iranian MPs have predicted the CBI annual interest as part of reforming the next Iranian year (March 21, 2019) budget plan, where it should pay the interest from government share and from transactions of foreign currency, to the treasury.
Several days ago, the parliament approved an act that would obligate the Central Bank of Iran to immediately pay 50-percent interest from its revenues and taxes to the treasury.
Both local economists in Iran and the CBI believe the act would not only cause the increase of monetary base and inflation, it would also lead to negative currency balance in the current Iranian year(March 21, 2018) and increase of government debt to the Central Bank of Iran.