The Central Bank of Iran has vowed to curb the rising tide of liquidity, which he blamed as the source of all market volatility, including a currency crisis that has seen the rial drop to record lows since April.
CBI Governor Abdolnasser Hemmati, who was addressing the 29th Islamic Banking Conference on Saturday, also criticized the banking system that, he said, was the main culprit behind the multifold growth in the volume of liquidity in recent years.
“As long as liquidity growth continues at the current pace and nothing is done to curb it, this pressure will prevail in the forex market and other parallel markets, as individuals strive to preserve their assets,” Hemmati was quoted as saying by CBI’s website.
