Gholamali Kamyab, deputy chief of the Central Bank of Iran for foreign exchange affairs says the preference is to receive the freed assets from overseas in installments to avoid inflationary impact.
“Receiving the total amount (hard currency) in a lump sum will generate inflation as it will have to be changed into the local currency that will increase the money base,” he said in an interview with ISNA.
CBI prefers to retain much of the assets broad for investment purposes, he said without elaboration.
The senior official noted that Iran’s foreign exchange reserves declined due to the extended period of sanctions but ‘the overall situation is satisfactory.”
He pointed to the lifting of sanctions on Iran’s crude oil exports saying that this would help replenish the forex resources and reserves. “Foreign exchange resources are sufficient for supporting the rial and for imports.”
More Clarity
In a meeting with banks’ international reps he said the banking sector is to provide the CBI with a daily report on the number of transactions, trade and letters of credit issued in move to help improve transparency.
“Some foreign banks might initially hesitate to resume their relations with Iran, but operations should not be interrupted,” he said. CBI intends to quicken the process of opening L/Cs, according to the official. “ L/Cs can be issued by any bank and in any foreign currency.”
