Syed Ali: The interest rate should be closer to the reality of the economy due to the low interest rate and the limitation of income generation, the banks turned to businesses and buy coins and gold.
Syed Kamal Syed Ali, former Vice President of Foreign Exchange of the Central Bank, in an interview with Aktaznews:
One of the problems of the country's economic policy was the suppression of the exchange rate and the interest rate.
Since the beginning of the revolution, governments have tried to keep the exchange rate and interest rates lower than the level corresponding to economic reality. While in many countries, one of the principles of monetary policy is that the interest rate should be higher than the inflation rate.
This is one of the reasons for the dissatisfaction of the banks. Due to the low interest rate and the limited income generation, the banks moved from the main banking activity to corporate activity such as buying coins and gold.
The current conditions of the country's economy are different from the usual situation; Under normal conditions, competition between markets should be recognized and the rates of other markets should not be suppressed by decree just to support one market.
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