TEHRAN, Iran, August 1
Trend:
Increase of prices in the spring of the current Iranian year (started March 20,2020) was not related to the increase of monetary base and liquidity, said the Governor of Central Bank of Iran Abdolnasser Hemmati, Trend reports via IRNA.
"The Central Bank of Iran (CBI) would make all the efforts to control the mid-term and long-term growth of monetary variables , as well as manage interest rates and curbing inflation," Hemmati said.
"The CBI will use all its instruments to reach target inflation for the next Iranian year (started March 21,2021)," said Hemmati.
"The approach of the Central Bank of Iran should be judged based on the framework of macroeconomic environment and economic shocks alongside the CBI's instruments, authority and independence ," he said.
"Purchasing part of foreign currency sources of the National Development Fund was provided from monetary base to finance the budget deficit during sanctions," he said.
Hemmati went on to say that the methods that would be used to finance budget deficit in the current Iranian year (started March 20,2020) include sale of the government shares in public companies and issuing debt bonds.
"If problems arise, necessary sources will be used, without pressuring the monetary base," he added.