‘CBI to take all necessary measures to support private sector’

July 14, 2019 - 19:49

TEHRAN – Governor of Central Bank of Iran (CBI) Abdolnasser Hemmati said the bank won’t spare any effort in order to overcome the barriers in the way of the private sector’s trade, IRNA reported.

The official made the remarks in a meeting with the board members of the country’s chambers of commerce, guilds and cooperatives on Saturday.

In the meeting, Hemmati stated that CBI is planning to control the foreign exchange market in order to maintain market equilibrium in the country.

He further expressed hope that the continuation of the relative calmness in the markets would lead to a boom in domestic production.

“Fortunately, the foreign exchange market is stable, and the reinjection of exports revenues into NIMA are getting better which is a sign that the country’s businessmen and traders are welcoming CBI’s recent foreign exchange policies,” he said.

Elsewhere in his remarks, Hemmati underlined some of CBI plans for directing liquidity to small and medium-sized enterprises, adding that the central bank is actively pursuing support for small and medium-sized manufacturing units.

“In this regard, and in order to prevent recession, new programs are being developed in collaboration with the country's monetary experts and will be implemented in the form of a productive financing plan," he noted.

Like the other economic bodies of the country, CBI has defined supporting production as its major plan in the current Iranian calendar year, which is named the Year of Pickup in Production, and in this regard Hemmati has several times stressed that supporting production units to flourish production is the priority of the country’s banking system in current year.

In early May, the official outlined CBI plans for neutralizing or relieving the impact of U.S. sanctions on the country’s economy and mentioned providing liquidity and working capital to maintain and boost domestic production as one of those plans.

To find the best ways for supporting production, CBI is regularly holding meetings with the representatives of private sector and also with the economists.

CBI’s plans take two major approaches, first is that they will lead to secure finance for production activities and provide the working capital needed for such activities; and the second one is that they will not be resulted in any deviation in the banking resources and also in higher inflation.

In this regard, the central bank’s committees of liquidity and credit have investigated several plans, that one of them is “Productive Finance Plan”, which will be implemented after being discussed with monetary and banking experts.

EF/MA

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