CBI After Boosting Non-Oil Exports
IRAN NEWS ECONOMIC DESK
Governor of the Central Bank of Iran says the bank is determined to boost non-oil exports and it is easing forex mechanism for exports.
Abdolnasser Hemmati said yesterday that less than 1/3 exports is related to oil.
Oil has had the major share of production and exports in Iranian economy for 50 years, Hemmati said yesterday, adding that today less than 1/3 of exports is related to oil.
Iran’s economic growth is also strongly affected by the oil sector and the direct effect of the sanctions is to reduce the oil sector growth and reduce resources for government’s budget, he noted.
He went on to say that the CBI will be able to create stability in non-oil sector by adopting monetary and currency policies.
Growth in oil sector is exogenous and depends on production and oil exports, Hemmati noted.
Hemmati also said that the body continues its work despite the U.S.’s sanctions imposed on it.
Speaking in a local event in Tehran on Sunday, Hemmati said that despite sanctions against the country and CBI being at its peak, Iran’s forex market has calmed down.
“CBI is managing the affairs and does its work in current circumstances through unsanctionable networks,” he added.
Boosting Non-Oil Exports
The country has managed to fulfill parts of its need for currency through non-oil exports and this has had a great effect in mitigating the pressures of sanctions, he said, adding, “Enemies put sanctions against the CBI under different pretexts since they have understood that we have foiled their purpose of sanctions.”
Elsewhere, he said that despite all problems “We should be hopeful about the future of the country’s economy.”
“Our foreign debt stands just at $9 billion while the figure for Turkey is $400 billion; this means that our economy will have great potential in the future.”
Meanwhile addressing the meeting, Chairman of Iran Chamber of Commerce Gholam-Hossein Shafei criticized current economic structure of the country which has led to financial chaos and increase of rent-seeking and corruption.
He also criticized the Trade Promotion Organization for cancelling the ceremony for marking the national exports day.
He also hailed the governor of the central bank for his measures which brought stability to the forex market.
Shafei also reiterated that to reach development and dynamism in the economy, the country needs some prerequisites and banks are one of them as they are the main vein of economy and injection of new blood in them can boost economic development.
He also criticized the number of banks in the country adding that national economy does not need this amount of banks.
