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Iran's Central Bank increases interest rates

Iran Materials 26 January 2012 16:18 (UTC +04:00)

Azerbaijan, Baku, Jan. 26/ Trend M. Moezzi

The Central Bank of Iran has announced that it will issue a maximum of 70 trillion rials (about $6.2 billion) in participation bonds, and allow banks to set deposit interest rates themselves, the Fars News Agency reported.

The bank's measures are designed to help stabilize Iran's fluctuating foreign currency and gold markets and combat loose liquidity.

Permitting banks to set their own interest rates on long-term deposits will promote competition that will benefit depositors.

In the last few weeks, as fears about the economy and sanctions have driven people toward the foreign currency and gold coin markets, their value has skyrocketed.

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