Tuesday, February 8, 2011

2-8-11 Shabibi: Central bank will follow the government’s budget allocations in order to adjust the exchange rate

Highlights/Thoughts
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1. Shabibi said that granting of independence to the CBI is of great significance because it is the umbrella of a protector of state funds
2. He said there can not be separation between the government and the CBI because the importance of monetary policy depends on the law of cooperation with the government
3. He pointed out the basis of the economy of the bank is to fight inflation, which happens because of the government or the private sectors
4. The also said the basis of the bank is also to work on the application of monetary policy both in the interest rates to stabilize the growth and support for banks in crisis through debt coordination
5. He also said the CBI will follow the government's budget allocations in order to adjust the exchange rate and reduce the imbalance

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