President Mahmoud Ahmadinejad in a decree appointed Mahmoud Bahmani as governor of Central Bank of Iran (CBI). The decree reads, "Regarding your Excellency’s valuable experience... and per this decree, you are appointed governor of the Central Bank of Iran."

It said, "It is hoped that by recruiting faithful, committed, creative and efficient staff and through careful planning... you will prepare necessary ground for maintaining and upgrading the value of national currency, while guaranteeing country's economic growth." The decree called on the new governor to strive for efficient banking and monetary system, compiling precise data and macro economic indices, devising proper monetary policies and overseeing the performance of the national banking system, institutionalizing Islamic interest-free loan system, supporting exports and expanding generative investment, and safeguarding national banking system and its interests at the international level.

[Bahmani is the third governor of the central bank in the last three years. It now appears that Ahmadinejad has gone one step further by demanding not lower interest rates but institutionalizing interest-free Islamic loans which would only fuel the fire of inflation. As we reported last week, Mozaheri has ordered new banknotes to replace the existing ones with 4 zeros removed. Hence the new 50 riyal replaces the old 500,000 riyals worth $580.]

IRNA, September 23, 2008