Iranian MP Urges Rownahi to Establish an Independent Central Bank
Iranian lawmaker Seyyed Nasser Mousavi Largani believes that Islamic Republic’s next government must establish an independent central bank in Iran in order to control domestic financial markets more efficiently than before.
“Unfortunately, Central Bank of Iran (CBI) failed to control financial markets efficiently in country. The government of Mahmoud Ahmadinejad applied its own false policies on the operations of CBI. I believe that Central Bank must work independently and its decisions must have economic roots not politics reasons.” Mousavi Largani remarked during an interview with local news papers on Saturday.
“In recent five years, Iran had experienced many difficulties in its economic structures. The current critical situations in Iran’s economy are mainly because of the mismanagements of CBI’s officials.” Mousavi Largani added.
The Member of Parliament went on to say that current high inflation rate in Iran is another result of poor governmental mismanagement in CBI. “The last government of Iran used to withdraw money from public banks illegally. In my opinion, the new government should change its views on this subject.” Largani concluded.
Iranian economists argue that Central Bank of Iran has lost its power and influence in local financial markets. In recent years, Western governments including but not limited to United Kingdom, United States and European Union have imposed several rounds of sanctions on Iran’s governmental and private financial institutions. These embargoes have lowered the value of Iran’s local currency, Rial. According to unofficial statistics, Rial has lost 50% of its value against foreign currencies only in recent 12 months.