Senior banker welcomes Central Bank of Iran’s interest payment rule

Financial Tribune – A decision by the Money and Credit Council – a policymaking body – to scrap overnight interest payments has yet to display its full force but the development has become a topic of hot debate among businesses and economic pundits.

While Central Bank of Iran Governor Abdolnasser Hemmati has apparently successfully sold the theory that ending overnight interest payments would reduce the “fluidity” of bank deposits, detractors say it will have the opposite effect.

In their view it will encourage the public to invest in safe haven assets like gold and forex instead of parking money in the banks.