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Iran's Central Bank demands more freedom to operate monetary policies

TEHRAN, June 9 (Mehr News Agency) - The Central Bank of Iran (CBI) will outline and perform monetary policies appropriately if it is independent, said the CBI governor here Friday.

Ebrahim Sheibani talking to the Mehr News Agency, however, added the CBI has no alternative but follow the government's policies if the bank lacks independence.

He emphasized that if the CBI and Money and Credit Council comprising representatives from the three branches have enough independence, they will be able to reduce inflation and control unstructured growth of liquidation.

"It is a concrete fact worldwide that the more independent a central bank is, the better economic policies are guided toward sound development and progress," he said, stipulating that this does not suggest a self-regulating body free of check and balance.

The Fourth Socioeconomic and Cultural Development Plan (2005-2010) put emphasis on appointment of the CBI governor by the president, which paves the way for a more independent bank.

In the past, the economic and finance minister nominated the bank's governor and the cabinet was in charge of approving the nominee.

... Payvand News - 6/9/06 ... --

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