Iran’s ICCIMA chief, CBI governor talk over private sector problems
Date
11/20/2024 7:06:16 AM
(MENAFN) Samad Hassanzadeh, the head of the Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA), has criticized the inflation control policies of the Central bank of Iran (CBI), arguing that they are negatively impacting the private sector’s access to financing. During a meeting with CBI Governor Mohammadreza Farzin, Hassanzadeh acknowledged the central bank’s commendable efforts to control inflation but pointed out that these measures are inadvertently limiting the financing available for private sector projects. He emphasized that the CBI’s policies, which focus on controlling the balance sheets of banks, have restricted the ability of private enterprises to secure the funding they need to operate, particularly as the government continues to intervene in the allocation of banking resources.
Hassanzadeh further highlighted that the private sector, already struggling with financing challenges, now faces even greater obstacles due to these policies. The banks' credit facilities are insufficient to meet the liquidity needs of production units, especially as the year draws to a close. The private sector's demand for increased access to financial resources is becoming more urgent as the crisis deepens, and Hassanzadeh expressed concern that these constraints could hinder economic growth and stability.
Additionally, Hassanzadeh pointed out other pressing issues faced by private sector operators, particularly exporters. One of the key challenges raised was the need for greater stability in the foreign exchange market. Economic operators are seeking more predictable exchange rates in order to plan their operations effectively. Hassanzadeh called on the CBI to take steps to stabilize the forex market, which he believes is essential for fostering a more conducive environment for business and trade.
In response, CBI Governor Farzin acknowledged the ongoing difficulties in managing the foreign currency market, noting the increased volatility in currency fluctuations over the past two years. Farzin explained that the central bank has been working on developing new policies to better manage the foreign currency market and provide traders with the necessary foreign currency. To mitigate the impacts of these fluctuations, the Nima system was introduced to make exchange rates more predictable and stable, helping traders plan with greater confidence.
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