CBI hosts a gathering of economists to discuss monetary issues

June 25, 2019

TEHRAN – In a meeting with the country’s economists in Tehran on Monday, the governor of Central Bank of Iran (CBI) explored issues like Integrated Forex Market, open market operations (OMO), liquidity and inflation, IRIB reported.

According to CBI office of public relations, in the meeting Abdolnaser Hemmati underlined the functions and characteristics of the currency market and open market operations (OMO), emphasizing that the OMO is the most important tool by which many central banks control short term interest rates.

“CBI intends to benefit from other countries’ experiences in open market operations by holding workshops in this regard,” Hemmati said.

The governor further noted that CBI is taking calculated and precise steps toward launching the integrated forex market and will take all necessary measures to make sure that the required infrastructure for this market is provided.
The economists at the meeting also appreciated the central bank's efforts for maintaining the balance in the foreign exchange market through setting up the integrated forex market as well as open market operations, saying that these are two of the most important outcomes of CBI’s monetary and currency policy making.

Reforming the structure of the country’s banking system, controlling liquidity, curbing inflation, removing barriers in the way of production, improving the people's livelihood and preventing income imbalances through monetary and fiscal policies, and the impact of U.S. sanctions and enforcement of bank operations were among the issues raised in the meeting.

Establishment of integrated forex market has been approved by the Money and Credit Council (MCC), the highest banking policy-making body of the CBI, on January 8 as the CBI aims to explore the real volume of demand and supply in the foreign currency market through a new mechanism.

Regarding this market, a CBI official said on May 5 that the new mechanism aims to organize the transactions in the foreign currency exchange market between the exchange shops, Mehr news agency reported.

In late May, the chairman of the Economic Committee of Majlis announced that an integrated forex market would be launched by the end of Iranian calendar month of Khordad (June 21), however the market hasn’t been inaugurated up to date.

EF/MA

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