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News ID: 1428
Iran » Iran
Publish Date: 12:58 - 20 June 2013
Tehran, YJC. CEO of National Bank says that the monetary system of the country needs to be independent if the economy is going to improve.

CEO of Iran’s National Bank believes that there is no internal problem to his respective organization, and what afflicts the country’s economy is that the Central Bank is not the country’s monetary policy making agent.

Farshad Heidari said "Right now there is neither any problem with the procedures for electing the Director General of the Central Bank, nor with the bank’s general rules. The problem lies rather in the fact that the bank and the Money and Credit Council have lost the power to make and enforce policies in the country.”

He added "Currently, based on the banking monetary law and the 80th article of the 5th Development Plan, the Director General of the Central Bank is chosen by the President and approved by the General Assembly of the Central Bank. It is wrong to think that changing this and similar layouts will necessarily end in an independent Central Bank and improve its performance.”

"What interferes with the independence of the Central Bank is that monetary policies are adopted outside the Money and Credit Council and the Central Bank. If policy making and executive affairs are laid on the Central Bank and the Money and Credit Council, then these organizations will do their job well,” Heidari asserted.

He stated "It is true that there are three branches in all political systems and the branches are separate, but their interactions and multilateral impacts are indispensible. Due to the extensive role of the Central Bank in the national economy, we must turn it into the fourth branch of the system and believe that the weightier and more powerful the Central Bank, the better the atmosphere for work and national economy will be.”

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