Iran’s CB: Open market operation set in motion

Financial Tribune – T he Central Bank of Iran officially started open market operations as part of its monetary policy to curb inflation, control interest rates in the interbank market and manage liquidity.

As per a CBI notice placed on its website, lenders can manage their need for liquidity or offer their surplus liquidity in the interbank market within the new CBI monetary framework.

The OMO and creating an interest rate corridor (IRC) are the main components of the central bank’s new monetary policy, the CBI said.

Under the IRC framework, the CBI sets the floor and ceiling of policy rates and lets other money market rates, such as interbank rate, move within this setup.