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Window of Anguish (Panjareh Eltehab) » Blog Archive » Tensions over Central Bank Governor’s Dismissal Continue

Tensions over Central Bank Governor’s Dismissal Continue

Written on October 1, 2008 – 1:11 PM | by admin |
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MPs Warn the Administration

While the differences between Iran’s ex-Central Bank governor and the President were so ‎deep that Ahmadinejad could not even wait to return to Tehran to issue his dismissal of ‎governor Tahmaseb Mazaheri and replace him with Mahmoud Bahmani, which he did ‎from New York, there already are reports of differences in views between the President ‎and his newly appointed governor.‎

President Ahmadinejad kept Mazaheri as Central Bank governor for only one year and ‎when he replaced him it was to “streamline his economics team”, but the official Fars ‎news agency which had predicted Mazaheri’s dismissal weeks in advance, published ‎reports yesterday that Hossein Samsami may be appointed as the deputy governor of the ‎Central Bank of Iran (CBI).‎

Samsami is the nephew of Parviz Dawoodi, Iran’s first vice-president and while Fars ‎news agency conditioned the finalization of Samsami’s ascend at the CBI to a ‎‎“confirmation by the governor,” news reports indicate that Mazaheri is not keen on doing ‎this. Entekhab news website on Sunday quoted an “informed source” that vice-president ‎Dawoodi’s request to elevate Samsami to be governor Bahmani’s deputy has met a ‎hurdle as the newly appointed CBI chief is refraining from appointing him. The news site ‎concludes that with this level of opposition by Bahmani, his own status may be reduced ‎to that of a deputy at the CBI.‎

While it seems doubtful that President Ahmadinejad would rescind his newly appointed ‎CBI governor so quickly, Entekhab websites report indicates the regret of the cabinet in ‎appointing Bahmani to lead the bank. Contrary to public views, Bahmani as an architect ‎of the new policies at CBI is even more adamant on its implementation than his just ‎dismissed boss, i.e. governor Mazaheri. His resistance and relative independence in ‎dealing with Samsami so far has disarrayed the cabinet prompting it to think that the new ‎governor may actually not change course at the bank and its monetary policies after all.‎

As tensions at the CBI and over its policies and leadership continue at a time when the ‎official ILNA labor news agency reported that, “Some senior CBI directors had ‎submitted their resignations because of pressures at the Central Bank.” This news agency ‎too mentioned Dawoodi’s pressure on Bahmani over Samsami and wrote, “While Dr ‎Bahmani has refrained from accepting the pressures in this regard, but it is heard that ‎Samsami is already exerting his presence in all quarters of the bank. According to some ‎reports a group of CBI directors who had joined the bank recently have resigned in ‎protest to Samsami’s expanding control.”‎

The problems at the central bank have not remained confined to the presidency, the ‎cabinet and the bank, as the Majlis too has joined in the game. First, Majlis’ Research ‎Center which works under Tavakoli recently announced its expert opinion on CBI’s ‎controversial policy package which led to the downfall of governor Mazaheri, and on the ‎resolution of the economics commission of the cabinet. The center announced that, “The ‎government should not intervene in monetary and banking policy making.” Following ‎that, Majlis speaker Larijani actually criticized the change of guard at the CBI and said, ‎‎“It is not good that individuals be replaced or removed from office so quickly,” which is ‎a direct reference to the removal of the CBI governor.

Source : Roozonline

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