Sheybani believes that emerging from our seclusion will mean that we will be more influential, rather than more influenced.

The sudden and unfortunate demise of Seyed Mohsen Nourbakhsh left the Central Bank of Iran (CBI) without a governor at its helm. Ebrahim Sheybani was finally selected as the new governor of the CBI after weeks of wrangling. Sheybani, a man with a firm grasp on economics, served as the late Nourbakhsh’s secretary-general. Before taking office, Sheybani met with the Supreme Leader, Ayatollah Seyed Ali Khamenei and President Seyed Mohammad Khatami, who advised him on carrying on with CBI’s policy of interest-free banking.

In his first address as the governor of the CBI, Sheybani reaffirmed his commitment to an interest-free banking system, curbing inflation and money printing to prevent a "price shock" from rattling the country’s economy as well as using economic structures for decision making, monetary discipline and establishing friendly relations with international financial and monetary structures. He stated that he does not intend to organize the CBI through a made up trial and error process and emphasized that he will strictly apply the tried and true laws of economics. This means effective market management and price determination set by principles of supply and demand –not interference by the government– to facilitate flow in the economy. However, this does not mean that the CBI will shy away from directing the market firmly when necessary.

Monetary discipline will be enforced with a watchful eye. Then again true monetary discipline can only be brought about if the government enforces financial discipline. Sheybani reminded the Minister of Finance and Economic Affairs that the fact that the government borrows from the CBI to cover its budget deficit –leading to an unchecked increase in paper-money and inflation– is a testimony to the major flaws of the country’s economic structures. The CBI also expressed its readiness to take part in the establishment of a strong investment market.

Another key focus of the new administration is reaching out a hand in friendship towards international financial institutions, such as the International Monetary Fund (IMF) and the World Bank. Sheybani believes that emerging from our seclusion will mean that we will be more influential, rather than more influenced. The CBI will continue sending experts to study abroad through the IMF, as 800 of these experts are currently working at the CBI. Moreover, the protection of the country’s currency reserves and national wealth is also a priority for the CBI. There must be a balance achieved between the country’s economic capabilities and the size of its international commitments.

Transparency was also addressed as a field in which the CBI must make more effort. Ambiguity and shadiness only add to investment risks in the country, especially at a time when international financial and economic institutions and organizations view transparency as a key indicator of a country’s economic maturity and development.

Sheybani concluded his remarks by requesting a rise in the status of the CBI in the country’s decision-making hierarchy. Even though Iran’s CBI enjoys a relatively independent and prestigious position compared to other countries adding to this status and autonomy will not lead to self-serving policies.

Tahmaseb Mazaheri, Minister of Finance and Economic Affairs, said that Sheybani’s selection was an attempt to strengthen the country’s economic team. On other economic matters, Mazaheri said that the Bill for Combating Money Laundering has been presented to the Parliament and the executive is prepared for its implementation upon passing. This bill will not impose a strict policing atmosphere over the country’s economic transaction and will only bring security to the market and investments.