IBENA- Why inflation has increased in this country: going back to the last 50 years of Iran's economy, unfortunately see that inflation has been here for 50 years and in 70s we had 25 percent inflation, in 80s, average inflation was 15 percent, in 90s, average inflation was increasing and unfortunately in the last four years, average inflation rate has reached 42.5 percent, in other words in the last 4 years, inflation has increased by an average of 20 percent and inflation has become as a chronic disease in the country's economy, Mohammad Reza Farzin, Governor of Central Bank, said in the interview program of special news.
Response of Central Bank to rate setting in Telegram channels
These channels were created under the title of free market, but a market in which there are no rules is not a market, but they used rate setting to increase the rate, Governor of Central Bank stated.
Stabilization Fund of currency is launched
We will launch several programs in exchange center of gold and currency this year, and in the first step, we will launch stabilization fund of currency and use the resources of stabilization fund of currency to intervene in currency market in necessary cases to stabilize the exchange rate, Farzin said.
Currency Swap and Forward Contracts are added to the exchange center
The third tool is the currency swap, a currency swap is very necessary in our country, because the balance in a country must be clear, and for example, we have the most imports by one country, but the volume of exports is low, but with another country, we have a lot of exports, but little imports, and this causes the balance of currency will be in trouble, and in these cases, currency swaps help us, Governor of Central Bank stated.
There is no queue in front of exchange offices
In another part of his speech about currency notes, On the first day of new year, we implemented a new policy so that exchange offices can sell currency, but it must be deposited into people's currency accounts, governor of central bank stated.
Allocation of 65 billion dollars of currency in exchange center of gold and currency and Nima system last year
"Last year, we allocated 65 billion dollars of currency in exchange center and in Nima system;
In other words, we allocated 10 billion dollars more than in 1400 and 21 billion more than in 1399. That is, in the last year, we provided almost all needs of foreign currency in form of bills and remittances, Farzin continued.
Targeting 25 percent growth rate of liquidity in 1402
According to the latest statistics of Central Bank, volume of liquidity is approximately 6400 thousand billion tomans.
Last year until the eleventh of Esfand, growth rate of liquidity was 27.8 percent while the inflation rate was 46.5 percent. In other words, real money of the country has decreased by 18.7 percent; Therefore, in the last year, control of liquidity with the tools implemented in central bank has been an effective method, in continuation of the conversation, Farzin said.
Debt of government and indiscipline in Banks cause growth of the monetary base
Pointing the effective factors, one is the increase in debt of government to banks; It is true that the debt of banks to central bank has increased, but one of the reasons is imbalance of the government and it has transferred it to the banking system, and another reason is the lack of discipline of some banks. As a result, both of these two factors has led to an increase in the debt of banks to central bank and ultimately led to growth of the monetary base, pointing out that factors have caused this, Farzin emphasized.
Rate of 28,500 tomans for dollar does not cause imbalance of the government
Currency of oil belongs to the government and its currency is sold by the government to central bank.
Therefore, the government has right to sell its currency at a higher rate, regarding determination of of 28,500 tomans for the exchange rate of petrochemicals, Farzin stated.
Why is a currency deposit account required to buy currency?
There is a term called capital flight, and it means that people exchange their Rials into currency, and it does not matter whether they keep purchased currency or not or transfer to another country, regarding the policies of Central Bank in controlling the exchange rate, Governor of Central Bank said.
16 billion dollars of currency in pockets of people and trust funds
In the robbery that took place from 116 funds of National Bank, there is an estimate of amount of foreign currency that was in these funds. Based on this estimate and considering all funds in the country, it seems that around 16 billion dollars of foreign currency is in pocket of the people and in the funds, regarding the amount of foreign currency in people's possession, Farzin said.
The condition of growth of production beside control of inflation
He stated that if we want to have growth of production along with reduction of inflation, we should shift financing from banks to other new methods.
We should strengthen foreign investment in view of the openings we are witnessing in foreign relations.
