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Central Bank of Iran Allowed to Start OMO

Central Bank of Iran Allowed to Start OMO
Central Bank of Iran Allowed to Start OMO

The parliament approved the section of next year’s (March 2019-20) budget bill that allows the Central Bank of Iran to launch secondary markets for trading Islamic bonds issued by the government. The measure is aimed at curbing inflation, the parliamentary news website ICANA reported. 
Note 5 of the budget bill says to implement monetary policy, control interest rates and curb inflation, the regulator can launch open market operations to trade Islamic bonds issued by the government and accept the same as collateral to lend to banks. 
The bill emphasizes that the CBI is allowed to only trade Islamic bonds issued by the government in the secondary market and at prices floated therein.  

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