Tue Dec 7, 2021 19:18:11
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President at the Annual General Meeting of the Central Bank:

Gov't never used monetary base for debts, borrowing/ If all sanctions lifted but FATF issue not resolved, we won't have normal banking relations with world

Appreciating the monetary and banking measures and programmes of the Central Bank over the past eight years, the President said, "With the work and policies of the Central Bank and the implementation of economic programmes, we were able to reduce the pressures of economic war on the people to a large extent".

news id: 122305 -

Sun 25 - July 2021 - 16:04

Speaking on Sunday at the 61st Annual General Assembly of the Central Bank, Dr Hassan Rouhani referred to the special conditions and ups and downs of the country over the past eight years, adding, "According to statistics, when the 11th government took office in 2013, economic growth was -7.7, and in 2015 we also faced the problem and shock of oil prices, and the price of oil, which was $104 a barrel at the beginning of the 11th government, even reached $30 at some point, so we faced special conditions".

The President said, "After we were able to overcome the sanctions in 2015, its positive economic effects were observed in 2016, so that in that year we enjoyed 12.5 percent economic growth and from the beginning of the 11th government to 2018, we had stable conditions in the country's economy".

The President added, "Since 2014, we have seen decent net employment in the country, and until 2018, we had an average of 550,000 permanent jobs each year. Inflation was in single digits from late 2015 to early 2018, but that changed with the start of the economic war".

Dr Rouhani said, "The government had very good financial discipline during the first four years and under no circumstances, even during the economic war, we refused to borrow from the Central Bank. We always tried to observe the government's financial discipline and we never used the monetary base for debts and borrowing".

The President said, "Since 2018, the Central Bank has been forced to use the monetary base for unauthorised credit institutions and the merger of banks of the armed forces".

Stating that we entered a new situation in 2018, Dr Rouhani said, "I call on managers and economists to explain the economic situation of 2018 onwards to the people based on the existing facts. The events that took place after this year had nothing to do with the government because the government was working according to its previous routine, and if it were not for the economic war of 2018 and the pandemic, the same trend would have continued, and according to the calculations made by economists, today the price of the dollar would be about 5,000 tomans".

The President said that the economic war of 2018 is unprecedented in the history of the country and the world, saying, "The fact that even the sale of a barrel of oil becomes restricted and the entire banking operations and resources of the country are completely blocked is unprecedented. But at the same time, despite all the constraints, the country was governed and basic goods and essentials were purchased and entered".

"With all these conditions in 2019, economic difficulties were almost controlled but unfortunately in the early 2020 COVID-19 entered the country," he said.

Referring to the government's economic measures against coronavirus, the President said, "With the measures taken, we were able to increase the number of hospital beds for people with COVID-19".

Dr Rouhani added, "Despite all the problems today, we were able to reach a relatively desirable point in the field of vaccine preparation, and the vaccination process has accelerated well".

The President also went on to state, "In the most difficult conditions and economic war, we are handing over the government to the next government with positive economic growth".

If two things had been done during this period, we would have seen better conditions in the early 1400, he said, adding, "If our hands and feet were not tied, we would certainly have been able to lift the sanctions at the end of 2020. Our agreement with the P5+1 in Vienna is very clear and the documents are available, and it is clear that we and them were willing to take action, but the resolution passed in parliament did not allow us to do our job".

Dr Rouhani pointed said, "The second step was in the field of FATF, which created a big problem. In this field, the government and the Ministry of Economic Affairs and Finance did their job, and the parliament and the Guardian Council also helped, but we faced a problem somewhere else, which still persists".

The President stated, "If all sanctions are lifted but the FATF issue is not resolved, we won't still have a normal banking relations with the world's banks".

Dr Rouhani said, "If we could implement the necessary powers given to us by the constitution, we would not have sanctions at the beginning of the year 1400".

Dr Rouhani added, "In some matters, the government alone is not able to do anything and other agencies and organs must also help, so it must be explained to the people where the government can act and where it is outside the authority of the government".

The President stated, "We did not hesitate to do what we could to solve people's problems, and we resolved some issues that were in the hands of the government, and we did not allow infrastructure, economic, and production activities to be shut down during the pandemic and sanctions".

news id: 122305

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