Economy, Business And Markets

CBI Stabilization Policy Will Persist

CBI Stabilization Policy Will PersistCBI Stabilization Policy Will Persist

Governor of the Central Bank of Iran Valiollah Seif met with a visiting business delegation from Germany on Tuesday, as the deadline for a final nuclear agreement between Iran and the six world powers is approaching.

Seif hailed the Iranian banking system for its potential to handle commodity turnover between the two countries, saying the CBI’s stabilization policy will persist so that the ground will be paved for further mutual cooperation. Germany is a major traditional European partner of Iran.

The central bank and the Hassan Rouhani administration have taken joint measures to stabilize the economy in the past couple of years by curbing inflation from 40% to 15% and trying to avoid making hasty decisions that could swell up the foreign currency market.

“Over the past two years, fluctuations of the currency market have decreased by 60% while the parity rate of the US dollar against the rial increased by only 3% in the last fiscal year (ended March 20),” IRNA quoted him as saying.

Seif also noted that despite economic woes, Iran managed to meet its commitments to the German banks, which could help boost mutual banking ties.

Iran has come under crippling sanctions since 2010 over its nuclear energy program. The US, UK, China, Russia, France and Germany are negotiating with Tehran to hammer out a nuclear deal that will lift all sanctions against the country.

According to the report, the visiting businesspeople hoped that German financial and economic firms will resume operation in Iran once sanctions are lifted.