The capital of state banks increased by 50 percent

According to financial news, Seyyed Ehsan Khandozi, Minister of Economic Affairs and Finance, stated at the 30th Monetary and Exchange Policy Conference: Monetary and exchange policies are mostly implemented for the inflationary goals of governments, and this is the right action in the country, because it is a short-term driver of inflation. In Iran’s economy, fluctuations are currency variables.

He added: The long-term driver of inflation in common economies is monetary indiscipline in the economy.

The Minister of Economy said: In inflation targeting, even though the country’s economy is not in a good inflationary condition, this correction process is good and defensible, and the government is trying to put long-term and short-term factors under its management.

Khandozi stated: In the monetary sphere of the control policies of the banks’ balance sheets, the implementation of the policies was successful last year and we were able to increase the liquidity rate to 31%, and such a trend will continue.

He emphasized: The recommendation of monetary policy literature is that quantitative controls have a good effect in high inflation, and the most important requirement in monetary policies is to take proactive measures.

The economic spokesperson of the government stated: In previous years, we did not face this amount of overdrafts by banks from the central bank. With the removal of 4,200 Tomans from the net assets of the Central Bank and the National Development Fund, more resources were added to the monetary base and the use of the net assets of the Central Bank increased, but at the same time, this problem was managed with discipline in the form of a single treasury account.

According to the Minister of Economy, while the liquidity growth rate reached 39% in 1400 and was 40% in the two years before that, but this rate was reduced to 31% with the government’s targeting, and this year there is also a target to reduce the liquidity growth rate .

Khandozi said: This year, the growth of deposits and the legal rate of the Central Bank have been announced, while there is a need to increase the deposits of banks with the Central Bank, if this increase in deposits is from the Central Bank’s money, it means that more reserves will be available to the banking network. .

Referring to the contractionary policy of the government to control liquidity, he said: the government is trying not to hit production and the financing of state-owned enterprises will not suffer, therefore, last year, the production chain financing policy was formulated, which was not seriously included in the agenda. This year, we are trying to put chain financing policy on the agenda.

The Minister of Economy stated: While the policymaker is trying to control the balance sheets of banks with the aim of curbing inflation, on the other hand, there is a thirst for liquidity for working capital in production companies, and our serious demand from the banking network is that the financing of production in the form of be done in a chain

Khandozi also said: The diversion of bank resources should be reduced and the wastage of resources should be minimized, and on the other hand, we should also provide the needed resources for producers.

He emphasized: Last year, with a passive policy, overdrafts were made by banks from the monetary base of the central bank, and the removal of 4,200 tomans currency caused the Bank of Agriculture to suffer from disharmony and high demand for resources as a state bank.

The Minister of Economic Affairs and Finance added: the volume of liquidity increased by 60% in the year and a half ending in March of last year, while the overdraft of the banks from the central bank’s reserves increased several times during this period, this year they are trying to make a more accurate decision in This context should be adopted and the situation of dissatisfaction and violations in the banking network should be reduced to a minimum.

Khandozi said: In a situation where the central banks of the world fulfill the needs of the banking network through government bonds in the form of open market operations, with this policy, less pressure will be placed on banks’ reserves.

According to Khandozi, according to reports received, out of 156 thousand billion tomans requested by banks in the form of repo operations, only half of it, i.e. 80 thousand billion tomans, was completed.

The Minister of Economic Affairs and Finance said about non-performing banks: there have always been non-performing banks, both governmental and non-governmental, and we must solve the problem of non-performing banks with macro-monetary measures, in which case interest rate competition will take place between banks, and healthy banks will also be subject to are influenced by circumstances.