Iran's central bank board has yet to decide whether to approve its governor's resignation but there are several options to replace him, the economy minister said on Tuesday, giving the first cabinet comments on the issue. An Iranian official on Saturday confirmed a report that Tahmasb Mazaheri would be replaced, saying the governor, who had differed with the government over monetary policy, was sacked.
The official said a formal announcement was been no comment since. Monday was a national holiday. Iranian newspapers on Tuesday also said Mazaheri was leaving. Economy Minister Shamseddin Hosseini, quoted by the official news agency IRNA, said the central bank board had to give its final word on the change but also spoke of replacement options. "The board of the central bank will announce its view in the coming days about accepting the resignation of Tahmasb Mazaheri," Hosseini said, according to IRNA.
"The board is reviewing the issue of changing the governor ... as soon as a conclusion is reached, it will be announced by government officials," the minister told reporters.
He was then asked if Mazaheri's successor had been picked and replied: "There are different options and some have more chance (than others)." The Iranian official said on Saturday the bank's secretary- general, Mahmoud Bahmani, would step in as caretaker.
Mazaheri, appointed a year ago, differed with President Mahmoud Ahmadinejad's government over interest rate and bank lending policies. Mazaheri pushed unsuccessfully for higher rates to curb inflation, now at 27 percent.
Prior to the announcement, some analysts said Ahmadinejad might want to replace the governor to gain more control over monetary policy before next year's presidential election, when the president is expected to seek a second four-year term.
Etemad newspaper, in its Tuesday edition, said Mazaheri had written a letter to the president and copied it to other officials outlining a plan to combat inflation but also saying he would quit if this plan was not carried out. Mazaheri was fired after a meeting on Saturday with the Ahmadinejad, Etemad added. Mazaheri had been outspoken about the inflation threat.
In June, a Dutch newspaper quoted him as saying government policy "leads to hyper inflation". He told Reuters in July the International Monetary Fund was right to recommend higher rates. Rising prices are the main gripe for most Iranians. Inflation has climbed from about 11 percent when Ahmadinejad took office in 2005 to 27 percent now, based on central bank figures. But many complain food costs have climbed faster.