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Will open market operations signal new chapter in Iran’s financial leadership?

The Central Bank of Iran will soon engage in open market operations for the first time, but lingering structural issues and the possibility of government meddling threaten the effectiveness of such a measure in curbing money supply and inflation.
A general view of the Central Bank of Iran building in Tehran January 23, 2006. Iran's central bank has not implemented any measures in preparation for U.N. action over its atomic programme because it does not believe sanctions will be imposed, the bank said on Monday. REUTERS/Morteza Nikoubazl - RP3DSFDOPYAA

Under the leadership of Abdolnaser Hemmati, the Central Bank of Iran has recently secured a fresh financial tool to better steer Iran's highly troubled economy, which faces stagflation for another year on the back of local mismanagement and unilateral US sanctions. But how successful will the central bank be, and how big of an impact will this have?

The Money and Credit Council, Iran’s top financial decision-making body, allowed the central bank on April 16 to engage in open market operations (OMOs) for the first time in the country’s history.

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