Priorities of the new Central Bank Governor
25Dec
The immediate priorities of the new Central Bank chairman to improve the people's economy:
A) Transparency and honesty; red line: Avoid providing false information to the public.
1- Regular and transparent publication of real economic statistics for sound decision-making
•Declaration of the real inflation rate (without manipulation),
• Publication of basic monetary data, liquidity growth, foreign exchange balance, government debt to the central bank,
•Public report on foreign exchange interventions: the amount of foreign exchange supply and its source.
This approach has two important consequences: increasing public confidence and creating discipline in monetary policymaking.
2-. Ending the "numericalization" of exchange rates
•Official announcement that the central bank is not the price setter of the dollar and only plays the role of stabilizing and regulating fluctuations.
3-.Transparency of the financial statements of the Central Bank and banks
•Publish the ratio of overdue claims, the amount of overdrafts by banks, and how to apply their penalties.
1- Regular and transparent publication of real economic statistics for sound decision-making
•Declaration of the real inflation rate (without manipulation),
• Publication of basic monetary data, liquidity growth, foreign exchange balance, government debt to the central bank,
•Public report on foreign exchange interventions: the amount of foreign exchange supply and its source.
This approach has two important consequences: increasing public confidence and creating discipline in monetary policymaking.
2-. Ending the "numericalization" of exchange rates
•Official announcement that the central bank is not the price setter of the dollar and only plays the role of stabilizing and regulating fluctuations.
3-.Transparency of the financial statements of the Central Bank and banks
•Publish the ratio of overdue claims, the amount of overdrafts by banks, and how to apply their penalties.
B) Fundamental reform in the foreign exchange market
1- Gradual and intelligent move towards a single currency rate
•Eliminating multiple and rent-based systems and rates,
•Designing a transparent market where exporters and importers interact directly,
•Publishing the schedule for eliminating parallel rates.
2- Changing the approach from "price suppression" to "volatility management"
•Instead of announcing a mandated rate, a commitment to controlling the range of fluctuations and calming the market,
•Foreign exchange intervention only for stabilization, not for showy or political purposes.
3- Reforming the policy of returning exported currency
•Designing logical and feasible mechanisms using modern financial instruments (transfers, clearing, regulated cryptocurrencies, special accounts),
• Avoiding punitive and judicial approaches in situations where the government has not provided a practical path.
1- Gradual and intelligent move towards a single currency rate
•Eliminating multiple and rent-based systems and rates,
•Designing a transparent market where exporters and importers interact directly,
•Publishing the schedule for eliminating parallel rates.
2- Changing the approach from "price suppression" to "volatility management"
•Instead of announcing a mandated rate, a commitment to controlling the range of fluctuations and calming the market,
•Foreign exchange intervention only for stabilization, not for showy or political purposes.
3- Reforming the policy of returning exported currency
•Designing logical and feasible mechanisms using modern financial instruments (transfers, clearing, regulated cryptocurrencies, special accounts),
• Avoiding punitive and judicial approaches in situations where the government has not provided a practical path.
C) Monetary discipline; stopping the creation and financing of inflation.
1-Concluding a "fiscal-monetary pact" with the government
•Financing the budget deficit solely through: taxes, debt securities, or subsidy reform,
•Red line: Direct or indirect borrowing from the central bank,
•Publish a monthly report on the government's use of Central Bank resources.
2- Strict control of bank overdrafts
•Implementing effective and deterrent fines for offending banks so that they are accountable to depositors and investors, rather than relying on the resources of the Central Bank.
3- Tackling the creation of unregulated money in the banking network and the approach to blockchain
•Priority: Discipline within the banking system, then demand inflation control from society.
1-Concluding a "fiscal-monetary pact" with the government
•Financing the budget deficit solely through: taxes, debt securities, or subsidy reform,
•Red line: Direct or indirect borrowing from the central bank,
•Publish a monthly report on the government's use of Central Bank resources.
2- Strict control of bank overdrafts
•Implementing effective and deterrent fines for offending banks so that they are accountable to depositors and investors, rather than relying on the resources of the Central Bank.
3- Tackling the creation of unregulated money in the banking network and the approach to blockchain
•Priority: Discipline within the banking system, then demand inflation control from society.
D) Reorganizing the Central Bank's relationship with the capital market, gold, housing, and cryptocurrency
1- Ending the security approach to markets
• An increase in the exchange rate or prices should not be interpreted as an arrest of market activists; the solution is transparent and stable rules, not case-building.
2- Accepting gold and cryptocurrency as economic reality
•When confidence in the rial decreases, people turn to alternative assets; Correct answer: Strengthening the rial and creating formal and legal instruments,
•Develop transparent gold and cryptocurrency funds t
1- Ending the security approach to markets
• An increase in the exchange rate or prices should not be interpreted as an arrest of market activists; the solution is transparent and stable rules, not case-building.
2- Accepting gold and cryptocurrency as economic reality
•When confidence in the rial decreases, people turn to alternative assets; Correct answer: Strengthening the rial and creating formal and legal instruments,
•Develop transparent gold and cryptocurrency funds t
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