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.