Farzin: According to the estimates of the central bank, inflation continues to decrease

According to the Fars news agency, citing the public relations of the Central Bank, Mohammad Reza Farzin said in the unveiling ceremony of the integrated system of judicial rulings (Siyaq) that was held today in the presence of the head of the judiciary in the Central Bank, he said: “Fortunately, with the implementation of this important system with the cooperation of The Central Bank and the Judiciary have been operationalized and have achieved very good results, and its main goal is to facilitate affairs for the general public.

The Governor General of the Central Bank pointed to the establishment of various systems in the Central Bank to solve people’s problems in the near future, and while emphasizing the strict implementation of the new Czech law with the support of the parliament and the judiciary, he said: “Today, fortunately, with the implementation of this law, the number of Czech prisoners has returned to It has decreased significantly, so that this number has decreased from 10 people per day in 2016 to one person every two days in 1401 and one person every three days in 1402.

In another part of his speech, Farzin pointed to the central bank’s duties, including issuing money, guiding monetary policy, supervising banks, providing payment systems, and the like, and said: since the 1990s, with the start of unilateral and illegal sanctions against the country, the duties of the central bank was also added and things like money transfer, freeing the country’s foreign exchange resources and financing the government in a situation where resources were not available were added to it, which made the central bank’s duties more sensitive, heavier and more risky.

The Governor General of the Central Bank emphasized that any lack of trust and instability in the country’s monetary and financial system will definitely cause irreparable damage and continued: the foundation and axis of all monetary and financial systems is the trust of the people and economic actors, and it is necessary to stop wrong procedures and carry out Reforms are necessary in the country’s banking and monetary system.

Emphasizing the continuation of the implementation of the economic stabilization program and the implementation of reforms in the banking system, Farzin clarified: the conditions of sanctions caused some indiscipline in the monetary and banking system of the country. This condition definitely needs to be corrected and is one of the issues that should be followed.

The head of the Money and Credit Council added: “The relationship between the central bank and the judiciary can help strengthen trust, and in this way, we need the help and cooperation of the judiciary in all areas, including currency, rial, money and banking, so that we can carry out reforms.” And without this help, it is not possible to make reforms.

Describing the measures that have been put on the Central Bank’s agenda for the past 6 months, Farzin said: “One of the most important measures taken is the implementation of the economic stabilization program, the basis of which is the control of currency and money, and we believe that if these two things are done correctly, peace will come.” It is created in the markets, and in this way, the liquidity and balance sheets of the banks should be controlled to create the necessary peace in the macro indicators.

The Governor General of the Central Bank stated that controlling the exchange rate and liquidity are considered to be the most basic axes of the stabilization plan, and emphasized: Although we believe in the growth of production and the programs of the Central Bank should help the growth of production, but the growth of production is not done by throwing money and The historical experience of the country has also shown this.

Farzin emphasized: We believe that the purposeful direction of liquidity and facilities towards the production and management of financial resources can definitely contribute to the better conditions of the country’s economic growth.

The Governor General of the Central Bank said: “Fortunately, with the measures taken by the Central Bank and the economic body of the government in the past months, relative calm has been established in the markets and we are witnessing a decrease in inflation.” These conditions were clearly seen in June and the estimates of the central bank also show that this reduction in inflation will continue.

He continued: The exchange rate has also stabilized and we believe that this stability should continue and the continuation of this stability can lead to fundamental changes in the expectations and confidence of the country’s economic actors.

Farzin stated: Last year, 65 billion dollars of foreign currency was allocated for imports, which was an increase of 10 billion dollars compared to the previous year. Also, this year, according to the latest statistics, we have seen a 12% growth in the supply of foreign exchange compared to the same period last year, and we hope to solve the concerns of economic activists for providing foreign exchange resources to strengthen the production infrastructure of the country.

He pointed to the Shamkh index prepared by the Chamber of Commerce and said: The number of this index reached 67 in May of this year, which was the highest figure since the beginning of 2018, so this index shows that the production situation in the country has improved. And this process should continue.

Farzin stated: Also, the average growth rate of investment and capital accumulation, which was equal to -6.9% in the 90s, increased to 6.7% last year, and we witnessed the growth of investment, especially in the machinery and construction sector. In addition, the average economic growth, which reached 0.8% in the 90s, reached 4% last year, and we hope that we can continue to maintain the growth rate at high levels.

The Governor General of the Central Bank reminded: Based on this, if we can continue the process of stabilization in the coming months, the trust of the people and activists will definitely increase, because part of our problems in the economic field are caused by the expectations and hopes of activists. It also depends on the performance of managers, and if we perform well, people’s trust will increase.

Emphasizing the necessity of using technology-based tools to transform posterior monitoring into anterior monitoring in the central bank, Farzin considered strengthening the central bank’s monitoring of all persons under supervision in an intelligent manner as one of the goals and plans of this bank.

The Governor General of the Central Bank also pointed out the need to strengthen the governance of the Rial and added: This means that we have the necessary information about the circulation of the Rial in the country and do not blindly issue the Rial, which requires the creation of the necessary informational, legal and legal infrastructure. and fortunately, good measures have been taken and are being taken by the Central Bank in this regard.

Farzin continued: With all the measures taken, we hope to develop the governance of the Rial and our national currency in the country’s economy and even be able to benefit from the use of offshore and cross-border Rials in exchanges with neighboring countries.

Referring to the holding of the meeting of the Asian Exchange Union (ACU) in Tehran with the aim of de-dollarization, the Governor General of the Central Bank said: “Fortunately, the secretariat of this union is located in Iran, and the rotating chairmanship has been assigned to our country, and there are good plans to use the capacities of this union with Paying attention to the importance of this union at the level of international organizations is underway.

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