Central Bank of Iran sees reason in Gov’t oil presale proposal

Financial Tribune – The governor of Central Bank of Iran has backed a government crude oil presale plan of action for domestic buyers, saying that it is one of the few government options to fund the budget deficit in a “healthy” manner.

By “healthy budget funding”, Abdolnasser Hemmati meant any viable method other than borrowing from the central bank, which runs the risk of increasing the monetary base and pushing up consumer price inflation, which already are at record highs.

“The government budget deficits due to the US economic sanctions on oil exports is a reality,” Hemmati wrote in a note on his social media account on Wednesday.