Central Bank Independence

"Independency in design and implementation of foreign exchange and monetary policies without intervention on the part of politicians is a vital requirement and the new administration strongly supports the idea.", the government spokesman and planning and strategic supervision vice-president declared.
According to Fars news agency as quoted from the public relation department of the Central Bank, the 43rd conference of Asian Clearing Union (ACU) was held last week. The conference, attended by Mohammad Bagher Nobakht, the planning and strategic supervision vice-president, Valiollah Seif, the governor of the Central Bank of I.R. Iran, and Lida Borhan Azad, the secretary general of ACU, was held in Razi Hall of the Centre for International Conferences in Kish Island.

Emphasis on expansion of cooperation
Representing the Iranian president and his administration, Dr. Nobakht welcomed the esteemed guests in the inauguration speech and added, "The fact that you have travelled long distances and attended this meeting signifies the importance of my colleagues' attempts in the Central bank.". He highlighted the importance of four decades of ACU hard work to to expand monetary cooperation, promote opportunities for economic growth, and develop bilateral and multilateral interactions. Mr. Nobakht expressed hope that efficient utilization of capabilities in production and distribution mechanisms would result in diversification of assets and improvement in living standards for people of the member countries. "Business and financial relations among member countries have experienced numerous ups & downs so far, however, the volume of relations has witnessed a growing trend in the long run. As one of the founders, the Islamic republic of Iran has maintained extensive business and financial ties with other members." he continued.
He went on to say, "With the new administration in Iran and expansion of its interactions with the international community, we sincerely believe that members of ACU can accelerate their financial and business trades with Iran and promote them to the old level and even more."
Referring to the achievements made by the government of hope and prudence in economy, Nobakht said, "Remarkable progress has been made in domestic economy. The new government received the legacy of destructive sanctions. The volume of international trade was fiercely suppressed due to restrictions on import and export."
He stressed the undesirable effects of upheavals in the foreign exchange market on economic activities, unpredictable price changes, and consequently surge of inflation rate. "Enhancement of transparency, sense of responsibility, credibility, and public trust is among other achievements made by the new government. It minimized the threats of western sanctions and cyclic and chronic shocks of stagflation.", he maintained.
As for other achievements, he pinpointed energy price reform, organization of payments, public health insurance scheme, family doctor, and other measures taken in order to establish economic and social justice throughout the country.

Independency of CB
Highlighting the government's support for the Central Bank independency, he said, "I should also mention that previous turbulences in money and exchange market, resulting from government's intervention in the Central Bank affairs, highlighted the necessity to recpect the central bank independence. Mr. Rouhani's administration warmly welcomed this plan."

A new chapter
Valiollah Seif, governor of the Central Bank welcomed the delegates from ACU member countries and said. "With strong determination and robust will, a new chapter of relations and trade and banking transactions has opened these days and we are honored to host the 43rd meeting of ACU board of directors." He also described Kish as a "marvelous island, which is one of the most charming historical places in Iran, located in the Persian Gulf. It has an estimated population of 20,000 residents and about 1 million people visit the island each year. It is also ranked among the world's 10 most beautiful islands by The New York Times in 2010, and it is the fourth most visited holiday destination in Southwest Asia."
The governor of the Central Bank also thanked Mr. Ashraf Mahmood Wathra, the Governor and also the respected authorities of State Bank of Pakistan for their sincere efforts and co-operations to promote the mission of the ACU Board for the year 2013.

An opportunity for more interactions
At the beginning of the meeting, Ashraf Mahmood Wathra, the governor of the State Bank of Pakistan handed over the periodic chairmanship of ACU to Dr. Seif. He also expressed his deep appreciation for the warm hospitality extended to guests by the CB and ACU secretariat during the conference. He mentioned transfer of experience between members as one of the main achievements of ACU meetings and added, "This meeting will result in deeper focus on future targets and more cooperation between member countries".

Approval of ACU 2013 report
Borhan Azad, the secretary general of ACU, presented the performance report of ACU for 2013 which was approved unanimously by the board of directors. Later, Gholamali Kamyab, deputy governor for foreign exchange affairs presented the proposals as offered by technical committees. The proposals were discussed and approved by members.
It was also decided that the next meeting would be hosted by the central bank of Bangladesh in 2015.
The guests also attended the dinner reception hosted by the governor of the Central Bank of Iran and received letters of appreciation as well as ACU trophies.
Fars news agency.