CBI Restraining Liquidity in the Interbank Market

The Central Bank of Iran says it is restraining surplus liquidity of banks in the interbank market. In a press release posted on its website, the CBI said it implemented the reverse repurchase agreement (reverse repo) in which banks give money to the CBI in lieu of bonds.
The regulator said it reduced 64.5 trillion rials ($258 million) in surplus liquidity from three banks. The bonds purchased by banks will mature in seven days at 18%.
It said it implemented reverse repo following the hoarding of liquidity in the interbank market. While the regulator was injecting money in the interbank market in the first weeks of the new fiscal year (started in March), it reversed course in the past two months to control and absorb the excess liquidity.