TEHRAN (Iran News) – President Seyed Ebrahim Raisi describes strengthening the value of the national currency, correcting the imbalance of banks, stopping the annual growth of liquidity, correcting the portfolio of foreign exchange reserves in accordance with the country’s investment and business needs, expanding the range of collateral and facilitating the collateralization process, activating the commercial account, strengthening the supervisory and supply systems and providing the capital turnover of production units as the central bank’s main missions.
Rais attended the Glass Building of the Central Bank on Sunday morning and first met the Governor of the Central Bank, the deputy heads of information technology and its managers and in the meeting he was informed about the functioning of the monitoring systems and intelligent monitoring of financial transactions.
The President then attended the meeting of senior managers of the Central Bank and after listening to the report of the Governor of the Central Bank, he pointed out the “important position of the Central Bank in the management of monetary and financial resources and the reform of the banking system” and defined the 10 missions for its transformation and improvement.
Raisi called the central bank the think tank and monitoring body of the monetary and financial policies of the country and said, “The central bank should vigorously advance the path of reforming and upgrading the banking system and supervise the implementation of the country’s monetary and financial policies”.
In this meeting, the President described strengthening the value of the national currency, correcting the imbalance of banks, stopping the annual growth of liquidity, correcting the portfolio of foreign exchange reserves in accordance with the country’s investment and business needs, expanding the range of collateral and facilitating the collateralization process, activating the commercial account, strengthening the supervisory and supply systems and providing the capital turnover of production units as the central bank’s main missions.
Raisi declared “stopping the growth of liquidity and managing money creation” as an important mission of the Central Bank and added, “The growth of liquidity is not a concern if it is directed towards production by management, but if it moves towards brokery in the market, it will have devastating consequences”.
Referring to the praise of the Supreme Leader of the Revolution for the government’s action in properly strictness in controlling the growth of the balance sheet, the President obliged the Central Bank to control the growth of the banks’ money creation by imposing a ceiling on the growth of the banks’ debts (deposits) and to control the annual growth of the country’s liquidity until the end of year 1402 to reach below 25%”.
Expressing his satisfaction with the state of the Central Bank’s monitoring and supervisory systems, the President said, “Thank God, we are in good condition in the field of collecting and monitoring data and information, and this information can help financial transparency in the country”.
Raisi described the timely action to prevent violations of rules as one of the important examples of using the information collected by these systems and stated, “All those who are active in the economic system of the country should come to the realization with the timely monitoring and action of the central bank, there is no basis for any violation in this system”.
He stressed that the central bank should act decisively and without compromise in relation to banking violations, and stated, “The quick and decisive action of the central bank violations committee against the violators is a great service to the country and the banking system, because it will prevent the offense from becoming a crime”.
The President described the central bank as the eye of the banking and monetary system of the country and said, “Today, the salvation of the country lies in production and the implementation of the Supreme Leader of the Revolution’s emphasis regarding supporting production saves Iran’s economy”.
Dr Raisi further called “resolving the problem of working capital of production units” as an important action of the central bank, and added, “Part of the reason for the closure of production units is the problem of working capital, which if solved, will lead to an increase in production and employment”.
The President also urged the Governor of the Central Bank to use his efforts so that the principles of Islamic banking are implemented carefully and with full supervision in banking contracts.
The President emphasized “special attention to the sovereignty of the Rial” and said, “We must avoid dollarization of the economy because the influence of the dollar on the economy has had harmful consequences in the country”.
Raisi also emphasized the necessity of reforming the country’s currency basket and using different currencies, especially in exchanges with neighboring countries and bilateral monetary agreements, and said, “This measure can help the stable supply of goods and increase exchanges and protect the country against the shocks of the dollar”.
Ayatollah Raisi obliged the Central Bank to provide the possibility of various types of collateral to obtain loans, including the collateralization of valid financial deeds and the difference in the value of gold and machinery collateral.