BAKU, Azerbaijan, March. 9
Trend:
The Iranian central bank governor criticized the potential inflationary impact of the next Iranian year's budget bill (starts on March. 21, 2021).
"We are grateful that the general aspect of the budget for the next Iranian year was approved with the relative understanding of the government and parliament,” Abdul Nasser Hemmati, the governor of CBI, wrote in a statement published in his Instagram, Trend reports.
“Regardless of the advantages and disadvantages of the budget bill, one thing became clear,” he said adding that “All governments and parliaments, despite criticizing the growth of liquidity and inflation, finally approve the budgets with high liquidity growth potential.”
He went on to say that the parliament is simultaneously seeking to approve a plan to reform the structure of the central bank, with the aim of strengthening the independence of the CBI and to approve a budget including the provisions which can be lead to the growth of liquidity. Controlling liquidity and inflation is the central bank's most important role.
Given the possibility of the growth of liquidity by the country's budget, he suggests that a way to control the growth of liquidity is to intensify the control of banks' balance sheets.
The central bank governor expressed hope that the government and parliament support the central bank in controlling liquidity and inflation.