Bond Auctions Resilient

The Central Bank of Iran said the initiative to hold bond auctions has been positive so far in that it is helping the government fund its deficit spending without the need to expand the monetary base by overborrowing from the CBI. 
In a press release on its website, the CBI said the government has so far raised 360 trillion rials ($1.5 billion) from selling bonds to banks and non-bank financial institutions in seven bond auctions.
Pointing to the merits of financing the budget via the debt market, the CBI said “the government will fund its budget via existing resources in the interbank market and avoid the CBI to get ‘high powered money’”.