20 October 2019 - 10:43

The Central Bank is trying to boost non-oil exports

The Central Bank's effort is to boost non-oil exports, bring its currency into the economy, help facilitate the import of essential and capital goods, and stabilize the economy, said the Governor of the Central Bank of Iran.
News ID : 107374

Dr. Abdul Nasser Hemmati noted: “for 50 years, oil had the dominant share of production and export in the Iranian economy, until today that it accounts for less than one-third of exports, for whatever reason, the government has failed to separate its budget from oil.”

He added that with the decline in the share of oil, the country's economic growth is strongly affected. The direct effect of the outrageous sanctions, of course, is to slow the growth of the oil sector and reduce resources for the state budget. Together, they have affected the non-oil sector of the economy and, consequently, the growth of the entire economy.

"What the Central Bank can do with its monetary and exchange policies is to help stabilize the non-oil sector," the Central Bank Governor said.

He said the growth of the oil sector is exogenous and depends on oil production and exports and the Central Bank's policies affect endogenous and non-oil growth.

The Chairman of the Council of Money and Credit added: "The situation of NIMA system and the excess of currency supply over currency demand shows that with the efforts of exporters and import arrangements, we passed through the difficult period,”

The Governor of the Central Bank said that while the economy returning back to its normal conditions, the Central Bank would continue its corrective and prudential policies and would avoid repeating unpleasant past experiences.

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