Iran's CB Continues to Control Money Supply

The Central Bank of Iran continues to implement open market operation to curb the excess liquidity of lenders in the interbank market.
During its weekly implementation of OMO, the CBI conducted reverse repurchase agreement (reverse repo) and accumulated 65.8 trillion rials ($260 million), according to data published by the CBI website.
While the CBI had focused on injecting money in the interbank market by conducting repo for several weeks, this was the ninth week in a row that the regulator reversed course in trying to absorb surplus liquidity.
As a component of the OMO, repo is a form of short-term borrowing for dealers in government bonds. In case of a repo, a dealer sells government securities to buyers, usually with short-term maturities, and buys it back the at the maturity date at slightly higher price.