Iranian Lawmakers Conclude Review of Central Bank Bill

EghtesadOnline: Members of the economic commission of Iran’s Parliament on Tuesday concluded the review of reform measures concerning the Central Bank of Iran, which is part of wider reforms aimed at overhauling the country’s ailing banking system.

News ID: ۷۴۵۹۰۳

12 September 2018

According to Zahra Saeidi Mobarakeh, spokeswoman of Majlis Economic Commission, the parliamentary entity finalized CBI reforms that constituted about one-third of the banking reforms.

“Subjects reviewed during today’s MEC meeting included the mode of calculating revenues and losses in the central bank balance sheet, increasing the capital of central bank and regulating the revaluation of central bank foreign assets,” she told ICANA, the official news outlet of the parliament.

On Monday, she had announced that MEC members further discussed the central bank’s monetary and foreign currency policies, Financial Tribune reported.

“As the Comprehensive Banking Law significantly empowers the independence of central bank, the approach of implementing monetary and foreign currency policies is one of the things that is being seriously pursued,” she said.

The Comprehensive Banking Law is the umbrella term used for wide-ranging and long-gestating reforms to Iran’s banking system and central bank that were devised by the parliament and the government.

Mobarakeh also said on Monday that the commission focused on the nature and mechanism shaping the relationship between the central bank and the government after reforms are implemented. She said MPs were focused on maintaining “an effective relationship” between the monetary regulator and the administration.

Representatives from the central bank and the Majlis Research Center, the research arm of the parliament, were also present during the meetings.

On Sunday, MEC members had approved the formation of new CBI entities, including a specialized monetary and foreign exchange policy committee, a specialized supervisory committee and an Islamic Jurisprudence Council.

Members of MEC first started reviewing the bank reform articles in early August. They will keep working through an ongoing two-week parliamentary recess at the behest of Majlis Speaker Ali Larijani.