Iran Central Bank - Interest Yes Inflation Yes

The Central Bank of the Islamic Republic of Iran “has announced the banks’ interests rates, which were about 26 to 28 percent, as 14 to 17 percent,” according to Governor Mahmoud Bahmani. The Bank also decreased the interest rate for long-term savings by 200 basis points to 15.00% from 17.00% previously. The Bank said of the move: “The aim is to help production and industries so that by decreasing the price of finished goods we can control and better manage imports,”. Iran reported official inflation of 12.4% in the year ending 20 March.

Note: Okay, so the CBI does use interest, but:

After the Islamic Revolution, the Central Bank was mandated to establish an Islamic banking law - The Law for Usury (Interest) Free Banking (pdf). In 1983 the Islamic Banking law of Iran was passed by the Islamic Majlis of Iran. According to this law, Iranian banks can only engage in interest-free Islamic transactions (interest is considered as usury or riba and is forbidden by Islam and the holy book of Qur’an). These are commercial transactions that involve exchange of goods and services in return for a share of the assumed “profit”.

The CBI does get a share of profit, but this is not “on top” of existing “money”. Money is not created for the bank’s share. Aside from discussions on whether this is usury or not, this is clearly a different system than the FED and the ECB are using, plus that it is still a national bank.

Ownership?

The President of Iran proposes a person as the governor of the CBI, who must be verified by the general assembly and appointed as per a presidential decree.

Note: So, US? That why?

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  1. anonymissexpress posted this