Fingers Still Pointed at Central Bank of Iran
One month has passed since the Central Bank of Iran’s new directive on lowering the interest rates, not more than 15% on long term deposits and 10% for short term ones, was announced while the criticisms are still fresh; in fact, they are mostly pointing fingers to the 11-day gap between the announcement and the implementation of this directive. In Response, the governor of the CBI has stressed that the sudden implementation would only create concerns and chaos leading people to take their money out of banks, adding to the liquidity volume or damage other parallel markets. Referring to the recently seen decline in depositors’ interest in longer-term deposits, Mr. Seif said that the latest statistics demonstrate a more than 10% drop in short term deposits reaching from 35.9% to 25% as the result of this directive. In the meantime, in a meeting held today between the governor of the CBI and the Minister of Economy and Financial Affairs, the minister explicitly announced that those banks which offer higher than set interest rates will be obligated to pay tax as their punishment.