Economy, Business And Markets

CBI’s $1.2b Payment

CBI’s $1.2b PaymentCBI’s $1.2b Payment

The government has received a hefty payment in rials tantamount to 1.2 billion dollars from the Central Bank of Iran (CBI) with the permission of the Special Solutions Committee, during the current fiscal year (ending March, 21). The amount is to later be compensated from oil revenue dollars.  The sum is part of revenues from Iran’s oil sales which are blocked overseas and have not been received by the CBI, Fars news agency reported.  The parliament however does not formally acknowledge the permission of the SSC. “What the government has done is not legally legitimate,” said a member of the parliament’s planning and budget commission, wishing to remain unnamed.  The commission held a meeting on Wednesday with CBI Governor Valiollah Seif who confirmed the transaction had taken place.  The government has received the rial amount without actually paying any dollars to the CBI. That means the bank did not exchange the money and rather printed it, further increasing inflationary pressures. Furthermore, the share of the National Development Fund of Iran, of the oil revenues has not been given to it.