The bill to increase the powers of the central bank is mandatory in the country’s special conditions

According to Iran Economist, the bill to increase the central bank’s authority to manage the currency market was presented to the Islamic Council by the government delegation. In the introduction of this bill, it is stated that due to the necessity of creating economic stability and maintaining the value of the national currency by strengthening the currency and rial powers of the Central Bank, this bill was approved in the meeting of the Supreme Council of Economic Coordination.

“Vahid Shaghaghi Shahri” in an interview with Iran is an economist Regarding the necessity of approving this bill in the Islamic Council, he said: There are two important discussions now; One is the issue of monetary policies and the other is the amendment of the banking law.

He added: On the other hand, the Central Bank Law was recently approved by the Islamic Council and reviewed by the Guardian Council, and it had minor flaws that the Parliament is finishing and will be notified to the Central Bank after completion.

This expert emphasized: If the government passes a bill to increase the powers of the central bank, it must be reflected in the general monetary policies of the country in the country’s banking law, and otherwise, if the banking plan that is in the parliament goes through legal procedures and is notified. Naturally, it creates conflicts with bills that are going to become laws.

He stated: The central bank and the government should pay attention in their considerations, if they send bills to increase the powers of the central bank, they should be in line with the general monetary policies of the Islamic Republic of Iran, the law on the central bank of the Islamic Republic of Iran, whose approval process has been finalized, and the country’s banking reform plan, which is The agenda of the parliament is to be aligned.

Shaghaghi said: Also, for the country’s foreign exchange management and monetary policies in order to control inflation, the important issue is that there should be coordination between monetary, financial, foreign exchange and commercial policies, especially between foreign exchange and commercial policies, there should be a precise connection for the management of the foreign exchange market. that financial and budget policies affect inflation and monetary policies and trade policies affect currency policies.

He continued: This is why the optional increase of the central bank has been proposed so that this bank has an open hand in the issue of authoritative supervision over the country’s banking network and also applies its supervision over the banking network, especially over the bad banks in the country.

Emphasizing that the foreign trade sector should be more coordinated with the Central Bank, this expert said: the currency obtained from non-oil exports should be returned to the country on time, and as a result, the Central Bank can be more coordinated with commercial institutions in the field of foreign exchange allocation and supply.

He added: We have seen many times that credit has been allocated by the central bank, but either the supply of foreign currency is not done or this action is done slowly. Also, either the currency from the export does not return to the country on time, or in some parts, the import is done without coordination with the central bank, which puts pressure on the currency market.

Shaghaghi stated: If we want imports to be carried out on time, we need to provide resources, which the central bank is in charge of. Besides, the currency obtained from non-oil exports should be returned to the country on time so that the central bank can allocate and supply the importers’ currency.

Referring to the special economic conditions of the country, he said: In order to coordinate commercial and currency policies on the one hand, and also to supervise the banking network of the country, the Central Bank has requested an increase in powers to the Islamic Council, but we must pay attention when this increase Powers are given to the parliament in the form of a bill, its traces must be seen in monetary policies, in the law of the central bank and in the banking of the country.

This expert emphasized: the laws of the central bank’s powers and monetary and foreign exchange policies should be coordinated and balanced so that the central bank can manage the currency market, and at the same time, the central bank should be given the authority to strongly monitor the banking network. slow