Who is the face behind the scenes of the Central Bank?
Who is the face behind the scenes of the Central Bank? According to Iran Gate, the state of the currency market and the value of the national currency is so disorganized that many widespread criticisms have been raised against the Central Bank. Recently, Ali Salehabadi dismissed Afshin Khani, the Deputy Governor for Foreign Exchange Affairs of the Central Bank, but observers believe this action by the Governor of the Central Bank is akin to a deal to remain in the seat of power.
However, the question that has occupied the minds of many is who is the face behind the scenes of the Central Bank and who is making the pivotal decisions of the country’s most important economic policymaker.
To understand the management mechanism of the Central Bank during Ali Salehabadi’s tenure as Governor, we must return to the early days of his appointment to this sensitive position, a time when many experts and commentators were unanimously opposed to such a choice and accused Ebrahim Raisi of appointing politically aligned individuals to important and significant state and government positions.
Iran Gate, in a three-part series, has attempted to unveil the events behind the scenes of the Central Bank and take steps towards transparency. In this report, which is the first part of this series, one of the most important behind-the-scenes players in the management of the Central Bank and the currency market is introduced.
Everyone lost out.
Ali Salehabadi’s appointment followed this exact pattern, and Ebrahim Raisi, ignoring criticisms, appointed one of the members of the Imam Sadiq University alumni circle to the position of Governor of the Central Bank. This happened while economists and experienced bankers considered him lacking in scientific and professional qualifications.
The only group initially delighted by this choice were the capital market participants, as they believed Salehabadi, due to his previous role as head of the Stock Exchange during Mahmoud Ahmadinejad’s presidency, would surely favor shareholders in the Central Bank.
But now, more than 14 months into Salehabadi’s tenure as Governor of the Central Bank, even the stock market participants are severely critical of his performance. According to the capital market participants, the only benefit the stock market gained from Ali Salehabadi’s appointment was the appointment of managers who were with Salehabadi in the Stock Exchange during the 2000s and nothing more.
The son-in-law’s legacy on the wall of the Mirdamad building.
As previously mentioned, immediately upon his appointment as Governor of the Central Bank, Salehabadi dismissed the middle managers and deputies of this policymaking body and installed managers who had previously worked with him in the Stock Exchange. Several important appointments occurred in this regard, the most significant of which was the appointment of Saeed Mostashar as the Deputy Governor for Administrative Affairs of the Central Bank. This event, which was not unexpected, occurred amid rumors of a familial relationship between Mostashar and a high-ranking member of the Central Bank’s Jurisprudential Council.
In the early days of Salehabadi’s tenure and his strange team’s takeover of the country’s most important economic policymaking body, the existence of this familial relationship became a hot topic, but a wave of denials swept through domestic and foreign media. However, now, after 14 months, it has been revealed that Saeed Mostashar is the son-in-law of Gholamreza Mesbahi Moghadam, the head of the Central Bank’s Jurisprudential Council, a point that was consistently denied over the past year but has finally been exposed.
Mostashar, a revolutionary-standard manager.
A look at Saeed Mostashar’s previous positions, considering his affiliation with the Imam Sadiq University alumni circle, indicates that he is among the revolutionary-standard managers. This is the benchmark against which most of the managers in Ebrahim Raisi’s economic team have been evaluated before being appointed to sensitive government positions.
He also has about 15 years of collaboration with Ali Salehabadi and seems to be a trusted figure for the current Governor of the Central Bank. Mostashar has worked alongside Ali Salehabadi in the Securities and Exchange Organization, the Export Development Bank, and Iran-Venezuela Bank. However, how his performance is evaluated is another discussion that includes many significant points.
The main point of this report, however, is to address Mostashar’s unlimited influence and extensive power in the most sensitive economic policymaking body of the country, an institution that is currently known as the highway of unscientific and inappropriate economic decisions. Experts have harshly criticized the performance of the Central Bank over the past year. Thus, we must see what the consequences of the unlimited powers of Gholamreza Mesbahi Moghadam’s son-in-law in the Central Bank are and what damage it has inflicted on the country’s economic structure.
Mostashar and currency market management.
The strangest point in reviewing Saeed Mostashar’s activities in the Central Bank is his incessant interference in matters related to the Foreign Exchange Deputy of this institution. This deputy, which is essentially the most important authority for managing the currency market in Iran, has always held a significant and vital position for the Islamic Republic system.
Let’s set aside the fact that Salehabadi’s appointment of Afshin Khani to this position attracted much criticism, but reports available to Iran Gate indicate Saeed Mostashar, the Deputy Governor for Administrative Affairs of the Central Bank, has been present in meetings related to the Foreign Exchange Deputy.
Meanwhile, Khani was recently dismissed from his position as the Central Bank’s Deputy Governor for Foreign Exchange, and another Imam Sadiq University graduate, who coincidentally has a heavy and ambiguous record, has taken his place. It is said that Mohammad Aram, who was appointed last week as the Central Bank’s Deputy Governor for Foreign Exchange, is a close friend of Saeed Mostashar.
On the other hand, there is speculation that Aram and Mostashar’s cooperation in previous positions involved dark and ambiguous points that have never been seriously investigated by competent authorities.
Although many believe that the state of the currency market will be much worse in the coming days and weeks, it seems the Imam Sadiq University alumni circle has plans for this area as well, plans orchestrated by Saeed Mostashar, and undoubtedly, the cost will be borne by Iranian citizens.
Alongside the face behind the scenes of the Central Bank, reports and analyses have been published in Iran Gate, a few examples of which are listed for your convenience.
- Iran’s future in the haze of doubt.
- Iran’s banking system is bankrupt.
- Iran’s economy is bankrupt, Part Two.
- Daily record-breaking of the dollar rate.