President opposes higher deposit rates for Iran

Iran Materials 18 January 2012 15:36 (UTC +04:00)

Azerbaijan, Baku, Jan. 18/ Trend M. Moezzi

Iran's President Mahmoud Ahmadinejad is opposed to a proposal for increasing deposit interest rates, Mehr news reported a member of the parliament, as saying.

Iran's Minister of Economic and Financial Affairs, Seyed Shamseddin Hosseini, announced Mr. Ahmadinejad's opposition to the move at a meeting that included the economic commission, the economy and industry ministers and heads of public and private banks, said Shakour Akbarnejad. The session was held to discuss conditions in Iran's gold coin and foreign currency markets.

The proposal to set deposit rates above the inflation rate had been made by Mahmoud Bahmnai, the head of Iran's central bank and was supported by members of Iran's Majlis (parliament). It was designed to help direct the current loose liquidity toward bank deposits to help stabilise the currency exchange markets.

The Majlis representatives were also unhappy with the administration's decision to continue having different exchange rates for foreign currency said Mr. Akbarnejad who represents the northeastern city of Tabriz.