Business And Markets

Interbank Rate Slightly Higher

Interbank Rate Slightly Higher
Interbank Rate Slightly Higher

Data published by the Central Bank of Iran on Sunday suggest interbank rates have increased steadily for three weeks in a row.
The rate presently stands at 18.5%, the highest since July 29. It is, however, slightly lower than 18.61% reported in mid-July.
The Persian-language economic website Eqtesad News linked the rise in interbank rates to liquidity strain in the interbank market. It said “meaningful increase” in the so-called structured interbank lending is a sign that lenders are tight on liquidity.  Structured lending is a process through which banks offer bonds as collateral with the CBI to borrow.
The development is seen as a bad omen for investors in asset markets, giving rise to speculation that the monetary regulator seeks to raise rates to tame the surge in asset prices.


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