TEHRAN – The Central Bank of Iran (CBI) turned 55 on August 9. The CBI was established in 1960. As stated in the Monetary and Banking Act of Iran, the CBI is responsible for the design and implementation of the monetary and credit policies with due regard to the general economic policy of the country.

As banker to the government, the CBI is mandated to keep government accounts, grant loans and credits to state enterprises and agencies. The CBI also covers such functions as lending facilities to banks, purchase and sale of government participation papers as well as other legal banking operations.

After the Islamic Revolution of Iran laws and regulations pertaining to money and banking institutions and monetary policy design and implementation were amended to reflect the priorities and principles as set out in the Constitution of the Islamic Republic of Iran. At present, the CBI is responsible for the design and conduct of monetary policy within the context of government’s five-year development plans and annual budgets.