Business And Markets

Iran's CB Looking at Euro CDs

Iran's CB Looking at Euro CDs
Iran's CB Looking at Euro CDs

The Central Bank of Iran said it is planning to launch euro-denominated certificate of deposit to reduce the volume of rials held by the public and downsize the money supply, the bank’s governor said.
In a note in his social media account Sunday, Abdolnasser Hemmati said that the euro-denominated CDs will bear fixed interest rates that will be sold to buyers at the going rates. 
“With adequate reserves of euro banknotes, the CBI will be committed to reimburse the CDs in euro on the maturity date,” he wrote.   
A certificate of deposit is a product offered by banks and credit institutions that provides an interest rate premium in exchange for the customer agreeing to leave a lump-sum deposit untouched for a predetermined period of time.


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