71415
Businesses Demand Interest Rate Observance
Businesses Demand Interest Rate Observance

Businesses Demand Interest Rate Observance

Businesses expect the Central Bank of Iran to strictly monitor the implementation of the new CBI directive to lower interest rates 

Businesses Demand Interest Rate Observance

Since the inflation rate has continued to decline in the last four years, businesses expect the Central Bank of Iran to strictly monitor the implementation of the new CBI directive to lower interest rates, said the head of Iran Chamber of Commerce, Industries, Mines and Agriculture.  
“One of the major problems pertaining to the banking network is lack of CBI supervision. The central bank should beef up its regulatory watch over banks’ performance,” Gholamhossein Shafei was also quoted as saying by ISNA.
Shafei’s comments reflect the fact that banks had defied the original decision by the Money and Credit Council last year to bring down the rates. Last year’s directive stipulated a maximum interest rate of 18% and a deposit rate of 15%.
Some lenders bypassed the rule by establishing various kinds of stock funds, some of which paid even up to 23% on long-term deposits.
As of April 30, 178 funds worth 1.3 quadrillion rials ($34.1 billion) had been launched.
During an open session of the parliament on Tuesday, Ali Motahhari, Majlis deputy speaker and a leading reformist figure, called on CBI to present a report on its supervision over banks’ performance, specifically on the implementation of the new directive.
According to the directive announced last week, banks and credit institutions are obligated as of September 2 to adhere to long- and short-term deposit rates set respectively at 15% and 10%.
Referring to a firm promise made by Economy Minister Masoud Karbasian to close the gap between foreign exchange official and open market rates, Shafei said, “The dual forex rates leads to abuse. There are other ways of allocating this subsidy to strategic goods.”
Iran currently uses two exchange rates: the free market rate, which stood at 38,610 rials to the US dollar on Tuesday and an official exchange rate for state transactions fixed by CBI at 33,160 rials the same day.

Short URL : https://goo.gl/d5omnm
  1. https://goo.gl/iFweHe
  • https://goo.gl/FVKFNu
  • https://goo.gl/HWDPUe
  • https://goo.gl/EBiJfv
  • https://goo.gl/CBwAL2

You can also read ...

Stadler Rail’s business with Iran is worth billions of Swiss francs.
In early March, the Swiss Embassy in Tehran gladly announced a...
Grab Clinches Deal With HSBC
Ride-hailing startup Grab has secured a $370 million five-year...
Iran to Increase Exports to US Despite Sanctions
A senior Iranian trade official has announced that the country...
Audi CEO Arrested Over Diesel Scandal
Audi CEO Rupert Stadler was arrested in Munich on Monday in...
Trends in Housing Sales, Rents
The Statistical Center of Iran has presented crucial data...
Iran Proposes to Set Up IMO Offices in West Asia
The Ports and Maritime Organization of Iran has announced its...
Gov’t Limits  Forex Supply  to Importers
The government has curbed the allocation of foreign currency...
Over 2.55 billion shares worth $169.2 million were traded at TSE on June 18.
Tehran stocks showed no signs of backing down on their rally,...

Add new comment

Read our comment policy before posting your viewpoints

Trending

Googleplus