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Does the
Central Bank Fulfill Its Duties?
Although
monetary policies aim for economic growth and reduction of inflation as
their main objectives" the main goals of these policies are to stabilize
prices through the means that are available to the Central Bank.
The question posited here is "Does the Central Bank of
Iran actually fulfill its duties?" According to economic reports" the volume
of liquidity has increased 134 percent in the past five years. There will be
33 banks by the end of the current Iranian calendar year (started March 21"
2011). Meanwhile short-term foreign debts have been increasing in the past
two years and figures on the economic growth rate have not been announced or
calculated for the past three years. There are rumors about changing methods
of calculation. Selling gold coins is another story as is outstanding claims
of big banks. In addition" the monetary package prepared by the Central Bank
of Iran will increase rent and price of the gold coin and will move people's
deposits out of banks.
Since all these economic development
cannot take place overnight" the main question is does the Central Bank
observe all the above developments or not and what roadmap its officials
have adopted to go through the status quo? Are they banking on their
powerful experts? The existing evidence does not show this. Now that
reengineering of the economic structure has started" what we need is to
address structural factors which cause inflation. In short" the main
qualification for becoming governor of the Central Bank of Iran is to make
room for consultation and heed advisory opinions in order to achieve the
main goal of the Bank which is to preserve the value of the national
currency. |
