The governor of the Central Bank of Iran has reacted to reports that his bank is deeply involved in the currency market, saying that the CBI only intends to help avoid shocks. “Fluctuations in the currency market decreased 40 percent over the last fiscal year, indicating that the market is now more stable,” IRNA quoted Valiollah Seif as saying on Wednesday. The governor also predicted that inflation would continue its downward trend in the coming months, expressing hope to reach single digit inflation in a couple of years. He vowed that the CBI will release in a month a forecast report on inflation. He noted that the money supply growth rate slowed down to 21.2 percent during the year that ended in March due to the CBI’s contractionary policy.
