حسین عبده تبریزی

An advisor to Iran’s Minister of Roads and Urban Development says the country’s bank interest rate is in need of immediate reform.

In an interview with IBENA, Hossein Abdoh Tabrizi said tackling fluctuations in the interest rates is a crucial factor in stabilizing Iran’s economy.

“The government enjoys foreign currency reserves, which have been helpful in curbing the rates and have dodged inflation strains,” he added, while warning of a drop in the rate. Tabrizi noted that the Central Bank has to bravely control the rate and stop the damage, which the fluctuations are doing to the country’s economy. 

Touching upon the achievements gained following the nuclear deal (JCPOA), the Iranian economist said the agreement has opened up some opportunities for the Central Bank. He, however, added that the deal has not been implemented in its entirety when it comes to large international banks. “We have not yet managed to convince them to comply with the agreement, while Iran has done its side of the deal,” he said.

The advisor to Iran’s Minister of Roads and Urban Development stated that large international banks have their own interests in the United States, which has been trying to place brakes on the implementation of the JCPOA. “As a result, those banks, which have to do their dollar settlements within the US, move very cautiously regarding transactions with Iran.”

Tabrizi concluded that Tehran has to be able to do away with those concerns through economic diplomacy. “The Central Bank must have the same diplomatic power the foreign ministry uses in political negotiations. It should enter talks with international banks to guarantee legal covers while also establishing new banks which could work with international partners,” he added.

The Iranian scholar highlighted the need for an impetus from the Central Bank to interact with the outside world. “At home, the bank has to face the issue of the interest rate, for which it also needs cooperation from other official entities. At the international arena, it has to launch tough negotiations with other parties, something which makes the burden of the bank’s duties extremely heavy,” Tabrizi told IBNA.

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