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This is an old revision of this page, as edited by Satoshin1975 (talk | contribs) at 10:21, 29 December 2022 (--------------------------------------------------------------------------------------------------------------------------- --- In the name and memory of the great and merciful Creator who created humanity beyond a belief in a new thought. What I have prepared in this article (the creator of the world of digital currencies) is Satoshi. The world around mankind has always been subject to pure human talents and new creations from the beginning of creation.At the beginning of the creation of e). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

Central Bank of Iran
بانک مرکزی ایران

Seal of Central Bank of IranSeal of Central Bank of Iran
Ownership	100% state ownership
Governor	Ali Salehabadi
Central bank of	Iran --- In the name and memory of the great and merciful Creator who created humanity beyond a belief in a new thought. What I have prepared in this article (the creator of the world of digital currencies) is Satoshi. The world around mankind has always been subject to pure human talents and new creations from the beginning of creation.At the beginning of the creation of each phenomenon, humanity has presented various criticisms based on the lack of complete understanding and thought. By reflecting on the creation of technology and the advancement of science and the normalization of its understanding, followed by numerous experiments to serve Humanity will change its beliefs again, and the inferential understanding of that idea and example will reach its peak. Reach valuable. At the time I was onI was working on this topic (digital currencies), no one around and even in other lands was able to induce and fully understand this phenomenon, but this issue did not create any point of confrontation and obstacle for my emergence and coding, because every creator must first understand It is full of its own creation and may be beyond the mind of the Creator in the age of this idea and phenomenon beyond the beliefs of other peoples who have an irrational mentality and nature. Once I was sitting on a chair in one of my country's banks waiting for my banking process and waiting for my request fromI was a banker and a clerk. Suddenly, a new thought came to me. The initial spark appeared in me, and that spark was the creation of a new platform for transactions and exchanges, as well as a new phase of the economic system in which money (banknotes, coins) The material meaning does not exist externally. And the whole base consists of technology and the receiver communicates with the sender through a two-way program away from the expectation and absence of the person in the banks, as well as the opposition and superiority of the mind of each person in the position of banker. And he is responsible for auditing his propertyWhat we see during the day and night and the passing of months and years and years of our lives is far more complex than it can be understood by humanity. We only see aging but the friends of many cocoons after the birth of the silkworm. It turns out that it is full of mysteries. Yes, our dear ones, we have come for the beyond and our power is to the infinity of our inner thoughts. We are all the highest creatures in the world and have a great position. I came to this great induction from the knowledge of God and His understanding, and through this sparksPromising the greatness of God, I have been able to witness to the service of my invention to the world to this day. The defined irregular numerical scale gives rise to a specific order. My main goal in creating the prototype of this phenomenon was to know and understand humanity to fully understand this knowledge and science. Over the years, many different people have tried to replace their virtual identities with mine, but in the meantime, they are the only real creators of any phenomenon.It can prove to the world what it has created and has a sufficient and completeknowledge of its phenomenon. In the years 2008-2009, all my work in this field (digital currency) sought to understand and find a suitable solution to facilitate communication (P2P). And finally, with the help of the transcendental power and ability instilled in me, this thinking was able to work successfully and be happy. The idea of digital currencies is an evolved example of billions of cells from the infinite position of the cells of the universe, and the blocks each represent these cells, each of which is a position.They have special. The past and present economic system no longer meets the existential needs of those who look beyond the genius. So the advent of digital currency science itself is a huge ascent. At that time the friends who were in contact with me in the chat room criticized all the original coding. But only my true faith and hope was able to stabilize its true place. Reach yourself. My dear, digital currency coding will now reach a new direction and point with the re- emergence and resurrection of me, and that after the evolution of initial understanding and familiarityThe whole world will happen with this phenomenon. If what is written now and if my determination for another new revolution is broken, all this is due to the trust and honors of you dear ones who have helped me from the beginning and have always been by my side because of their inner beliefs in digital currencies. I have the power of pen and writing in my hands. Let me say that I will always be by your side with eternity and with all my heart and all that I have, and I will create a wonderful evolution of myself for your trust. Our inner concerns stem from misconceptions thatWe stimulate our inner hope and essence to challenge them. My dear friends and masters, from now on, instead of laughing at each other, let's learn to laugh together. Once upon a time, when I was talking to others about the idea and creation of a phenomenon, it was nothing but ridicule. My story was exactly like a human being who experienced a journey through time and did not understand what he was saying. These issues gave me more hope and belief. My dear, you should know that everything has a halfThere is (good, bad_gg, beauty_of_knowledge, complete ignorance, incomplete_wealth, poverty) Choose your own half . After creating the prototype, I started serving in the way of my created phenomenon (Bitcoin) and started sharing their advertisements in different markets and I received a salary of 0.3 Bitcoin units and in exchange for several advertisements and sharing of different brands. I was paid 1 bitcoin as a wage and I kept my balance in Paypall. I continued my activity for a few months and earned about 1000 bitcoins this wayFor the first time, I did extraction and mining operations on 500 of them with my mobile phone, which eventually led to the burning of my phone's hard drive after extraction, but this operation was very interesting. There are many memories and stories. In my autobiography, I will tell and transmit them all in their entirety to each and every one of you all over the world. The ID used that the world remembers as Satoshi Nakamoto, and I chose it for myself. It is just a mask and an identity. My real and original is something elseThey have not been able to find me now, but it is better to say that the great economic mafia of the world did not want anyone to know my true identity and be aware of my existence. Turn on. The new dawn in this century can be promising, newer ideas, thoughts and creations. In this article, I do not intend to challenge a particular character, but it is better to say that any person or persons who want to understand my identity Must know that I belong to a particular race or tribe or territoryI am not, but I am only in the service of the whole world and my fellow human beings, and my main goal is to end poverty and poor belief in the whole world, and I want the world to be needless in every way. I get a lot of conversations in chat rooms during the day. If you want to understand this fact. Let me be honest and assertive to everyone, I have the ability to raise or lower the value of digital currencies very, very easily. For the purpose I have stated. I always try to maintain moderation and assert the value of my invention.I will increase the d to higher digits. After sharing this article, each recipient will be responsible for transmitting it to others. The cryptography of this article all belongs to Satoshi Nakamoto's identity. This article will be translated and submitted in several languages of the world.
Currency	Iranian rial IRR (ISO 4217)
Reserves	$130 billion (2017)
Reserve requirements	10% to 13%
Bank rate	15%
Interest paid on excess reserves?	Yes
Standard tableau of Central Bank of Iran
Organization overview
Formed	9 August 1960; 64 years ago (1960-08-09)
Preceding organization	Bank Melli Iran
Jurisdiction	Islamic Republic of Iran
Headquarters	CBI Tower, Tehran 35°45′29″N 51°26′07″E / 35.758110°N 51.435209°E / 35.758110; 51.435209
Parent organization	None
Child agencies	Monetary and Banking Research Institute Iran Banking Institute Treasury of National Jewels Security Printing and Minting Organization Security Paper Mill
Key document	Banking and Monetary Act (1960)
Website	www.cbi.ir
According to article 10(e) of the Monetary and Banking Act of (1972), CBI's capital "is fully paid up and wholly owned by the Government". Bank Melli Iran had supervisory functions and regulated the activities of all banks in Iran, while being the largest profit-making commercial bank in the country.

The Central Bank of Iran (CBI), also known as Bank Markazi, officially the Central Bank of the Islamic Republic of Iran (Template:Lang-fa; SWIFT Code: BMJIIRTH) is the central bank of Iran.

Established under the Iranian Banking and Monetary Act in 1960, it serves as the banker to the Iranian government and has the exclusive right of issuing banknote and coinage. CBI is tasked with maintaining the value of Iranian rial and supervision of banks and credit institutions. It acts as custodian of the National Jewels, as well as foreign exchange and gold reserves of Iran. It is also a founding member of the Asian Clearing Union, controls gold and capital flows overseas, represents Iran in the International Monetary Fund (IMF) and internationally concludes payment agreements between Iran and other countries.

The website of the Islamic Republic of Iran was shut down on September 21, 2022 by the hacker group "Anonymous" in the form of a DDoS-Attack and is not accessible. The reason is a protest due to the death of Mahsa Amin.

History

The first attempt at introducing paper currency in Iran occurred during the Mongol Ilkhanate of the 13th century CE. The innovation, developed in Song Dynasty China, did not take hold in Iran, and paper currency did not return to Iran in any significant manner for several centuries.

Modern era

In 1889, the British-owned Imperial Bank of Persia (Bānk-e Šāhī) was founded and it was given the exclusive right to issue bank notes in Iran. In 1890 it introduced the first bank notes in Iran, ranging from 1 to 1,000 tomans. The bank did not do much to strengthen the Iranian capital formation or support then-currency of Iran, qiran.

To compete with the British bank, Imperial Russia also opened the Russian Loan and Development Bank. Polyakov's Bank Esteqrazi was bought in 1898 by the Tzarist government of Russia, and later passed into the hands of the Iranian government by a contract in 1920.

The first state-owned Iranian bank, Bank Melli Iran was established in 1927 by the government of Iran. On 30 May 1930, it took the responsibility to function as Iran's central bank, and took the rights of the Imperial Bank for £200,000, while it acted as a commercial bank at the same time. The bank's primary objective was to facilitate government's financial transactions and to print and distribute the Iranian currency (rial and toman). For more than three decades, Bank Melli Iran acted as the central bank of Iran and was charged with the responsibility to maintain the value of Iranian rial. In 1955, the bank was given the responsibility to supervise the national banking system.

In August 1960, the Iranian government established the Central Bank of Iran (CBI) and separated all central banking responsibilities from Bank Melli Iran and assigned it to the newly-formed central bank. Scope and responsibilities of the Central Bank of the Islamic Republic of Iran (CBI) have been defined in the Monetary and Banking Law of Iran (1960).

The Central Bank of Iran was renamed to "the Central Bank of the Islamic Republic of Iran", and Iran's banking system adhered to the new Islamic rules that prohibit earning or paying interest in 1983.

CBI maintains a museum of historic and ancient jewelry owned and used by the ex-kings of Persia. This museum houses the Imperial Crown Jewels and is one of the most appealing tourist attractions in Iran.

Organization

Money and Credit Council

The Money and Credit Council (MCC) is the highest banking policy-making body of Bank Markazi. Its permanent members include the CBI Governor, the Finance and Economy Minister, two Ministers chosen by the Cabinet, The Head of the Chamber of Commerce, the General Prosecutor and two lawmakers (MPs).

Each year, after approval of the government's annual budget, the CBI presents a detailed monetary and credit policy to the MCC for approval. Thereafter, major elements of these policies are incorporated in the five-year economic development plan. MCC meets every three months.

In practice, the ability of the banking system to create money is not much constrained by the amount of scriptural money through fractional reserve banking. Indeed, most banks first extend credit and look for reserves later. The Iranian Central Bank needs more independence from the government in order to combat inflation, according to the country's Parliament Research Center. As of 2010, Iran's Central Bank, is not able to conduct a "proactive" monetary policy (e.g. it needs Majlis' approval before issuing participation bonds) and has no control over the government's fiscal policy.

General Assembly

The current combination of the Central Bank's board of directors are the President, Economy and Commerce Ministers, Deputy-President for strategic planning, and a Minister selected by the Cabinet.

"Reform" proposal

Seven economists with at least 15 years of work experience were to become members of the general assembly according to a new law proposed by the Majlis in 2010, thus moving this body from being state-dominated to one where the private sector has greater say in the decision making process. The tenure of each member would be for 10 years and only for one term. Then President Mahmoud Ahmadinejad criticized this proposal and said that it is important for the Central Bank of Iran not to fall under private control "because it would not benefit the Iranian people" over the long run.

Governors

The President of Iran proposes a person as the governor of CBI, who must be verified by the general assembly and appointed by a presidential decree.

Objectives and functions

The objectives of the Central Bank of the Islamic Republic of Iran as per its charter and according to section 10 of the Monetary and Banking Law of Iran (MBAI) are as follows:

• Maintaining the value of national currency
• Maintaining the equilibrium in the balance of payments
• Facilitating trade-related financial transactions
• Improving the economic growth potential of the country

To achieve the objectives as stated in the MBAI, CBI is endowed with the responsibility of fulfilling the following functions:

• Issuance of notes and coins
• Supervision of banks and credit institutions
• Formulation and regulation of foreign exchange policies and transactions
• Regulation on gold transactions
• Formulation and regulation on transactions and inflow/outflow of Domestic currency

Islamic banking

After the Islamic Revolution, the Central Bank was mandated to establish an Islamic banking law. In 1983 the Islamic Banking law of Iran was passed by Majlis. This law describes and authorizes an Iranian Shiite version of Islamic commercial laws (as differentiated from a less 'liberal' Sunni version). According to this law, Iranian banks can only engage in interest-free Islamic transactions (as interest is considered usury or "riba" and is forbidden by Islam and the holy book of Qur’an). These are commercial transactions that involve exchange of goods and services in return for a share of the "provisional profit" called Mobadala.

In practice, Iran uses what are officially termed "provisional" interest rates, as rates paid to depositors or received from borrowers should reflect the profits or losses of a business. Under these rules, deposit rates, known as "dividends", are in theory related to a bank's profitability. In reality, however, these dividends have become fixed rates of return—depositors have never lost their savings because of losses made by the banks and almost never received returns larger than the provisional ex-ante profit rates. Interest charged on loans is presented as "fees" or a share of corporate profits. All such transactions are performed through (12) Islamic contracts, such as Mozarebe, Foroush Aghsati, Joalah, Salaf, and Gharzolhasaneh. Details of these contracts and related practices are outlined in the Iranian Interest-Free banking law and its guidelines. Examples are:

1. Gharzolhasaneh: An interest-free, non-profit, loan extended by a bank to a real or legal person for a definite period of time.
2. Joalah: The undertaking by one party (the jael, Bank or employer) to pay a specified money (the joal) to another party in return for rendering a specified service in accordance with the terms of the contract. The party rendering the service shall be called "Amel" (the Agent or Contractor).
3. Mosaqat: A contract between the owner of an orchard or garden with another party (the Amel or Agent) for the purpose of gathering the harvest of the orchard or garden and dividing it, in a specified ratio, between the two parties . The harvest can be fruit, leaves, flowers, etc. of the plants in the orchard or garden .
4. Mozaraah: A contract where the bank (the Mozare) turns over a specified plot of land for a specified period of time to another party (the Amel or Agent) for the purpose of farming the land and dividing the harvest between the two parties at a specified ratio.
5. Mozarebe: A contract wherein the bank undertakes to provide the cash capital and other party (the Amel or Avent) undertakes to use the capital for commercial purposes and divide the profit at a specified ratio between the two parties at the end of the term of the contract.

Sharia-compliant assets has reached about $400 billion throughout the world, according to Standard & Poor’s Ratings Services, and the potential market is $4 trillion. Iran, Saudi Arabia and Malaysia are at the top with the biggest sharia-compliant assets.

According to the IMF, Islamic banking forbids pure monetary speculation and stresses that deals should be based on real economic activity and therefore poses less risk than conventional banking to the stability of financial systems.

Criticism

Critics believe that the Iranian Interest-Free banking law has simply created the context for legitimizing usury or riba. In reality all banks are charging their borrowers a fixed pre-set amount at a rate of interest that is approved by the Central Bank at least once a year. No goods or services are exchanged as part of these contracts and banks rarely assume any commercial risk. High value collateral items such as real estate, commercial paper, bank guarantees and machinery eliminate any risk of loss. In case of defaults or bankruptcies, the principal amount, the expected interest and the late fees are collected through possession and or sale of secured collaterals.

Payment systems

In 2005, the government obliged the Central Bank of Iran and the Iranian banks, mostly state owned, to set up all the necessary infrastructures (regulatory, hardware, software) for fully launching e-money in Iran by March 2005. While this plan has not yet fully materialized, local debit cards are now commonplace and have removed the main obstacle to the growth of e-commerce (in the national scale) as well as the full roll out of e-government initiatives. However, Iran remains largely a cash-based economy.

The Central Bank has developed the Real Time Gross Settlement System (SATNA) as the main center for settlement of Iranian banks' transactions in rial. Upon implementation of the first and second phases of this system in 2006/07, real time settlement through the interbank information transfer network (Shetab Banking System) and interbank clearing house was started in the review year. Since 2007/08, bank-to-bank and customer-to-customer payments were also settled through SATNA. The Retail Funds Transfer System (SAHAB), launched at end-2006/07 for real time transfer of a large volume of payments of relatively small value, was further developed in 2007/08. Moreover, there are further plans to connect Iran's Shetab to information transfer networks of other countries.

In 2011, two new payment systems were launched: Scripless Securities Settlement System (TABA) as the electronic infrastructure for placement and settlement of various securities, including governmental and CBI participation papers. The launching of the automated clearing house system (PAYA) for processing individual and multiple payment orders, connection of Iran's Interbank Information Transfer Network (Shetab) to other ATM and POS switch systems for the acceptance of international bank cards, designing of the electronic card payment system (SHAPARAK) for the centralization and reorganization of POSs.

Digital currency

According to the Ministry of ICT in 2018, Post Bank of Iran will issue Iran's first digital currency over the blockchain technology (with the advantage, in relation to the sanctions against Iran that blockchain transactions do not need any clearing bank).

Furthermore, given Iran's large reserves of oil and gas, the Iranian rial could become a reserve currency if parity is established with oil and gas, as was between USD and gold in the past (e.g. parity of 1,000,000 tomans for a barrel of oil), such as with Venezuela's newly minted "Petro" crypto-currency.

Fintech

Finnotech.ir is Iran's premier banking API provider and Informatics Services Corporation (ISC) is a leading operator of information systems for the banking industry (including Shetab). As of 2016, Iran had 50 companies active in fintech. The CBI limits fintechs' role in Iran's financial sector by allowing them to operate as long as they are not involved in money creation, currency exchange, offering payment tools (like cards) and attracting deposits.

Cheques

As of January 21, 2010, account holders will no longer be allowed to withdraw more than $15,000 from Iranian banks but they can still write checks for larger amounts. The government wants people to use bank checks and electronic banking systems instead of cash transactions.

In 2009, 10.7% of cheques bounced.

Debit/credit cards

In 2007, Tetra-Tech IT Company announced that Visa and MasterCard could be used for online sales and in Iranian e-card terminals at shopping malls, hotels, restaurants, and travel agencies for Iranians and foreign tourists. Iran's electronic commerce will reach 10 trillion rials ($1 billion) by March 2009. Some wealthier people have debit cards, but MasterCard or Visa are no longer available in Iran, and few foreign banks are active there because of international sanctions. Around 94% of Iranians had a debit card, compared with less than 20% in Egypt (2015).

In 2016, Iran introduced its own domestic credit card system based on Sukuk principles and reported talks with MasterCard (and other international payment operators) for a re-entry.

Hawala

Many Iranian businesses and individuals also rely on hawala, an informal trust-based money transfer system that exists in the Middle East and other Muslim countries. Since the imposition of recent U.S. and UN financial sanctions on Iran, the use of hawala by Iranians has reportedly increased.

Anti-money laundering law

The Central Bank of Iran is enforcing the Anti-Money Laundering law to curb possible crime. The minister of intelligence, the governor of the Central Bank of Iran (CBI) and several other ministers are among the members of the special committee in charge of the campaign against money laundering. In 2008, the Paris-based Financial Action Task Force (FATF) Watchdog praised the Islamic Republic's crackdown on money laundering. The 34-member financial watchdog congratulated Tehran on its commitment to seal money laundering loopholes. However, in 2010, FATF, named Ecuador and Iran on a list of states that it says are failing to comply with international regulations against money laundering and financing terrorism. Despite president Hassan Rouhani showing interest in FATF, there has been a massive disagreements by hardliners related to supreme leader, Ali Khamenei. Among them Ahmad Jannati, the chairman of the Assembly of Experts and the secretary of the Guardian Council and Ali Akbar Velayati, Iran's former foreign secretary and Supreme leader top foreign relationship advisor are two notable people who are against the FATF. These disagreements and lack of FATF being approved by the Iranian parliament has brought FATF enforcement to halt.

It has been estimated by the government of Iran in 2015 that dirty money from drug trafficking in Iran amounts to 10 trillion tomans a year (1 toman equals 10 rials), some of which has been finding its way into "elections and the securing of votes" to influence the country's politics.

Reserves

Foreign reserves

• Reserves of foreign exchange and gold: $125.9 billion (2015), $111.6 billion (2014), $68.06 billion (2013), $74.06 billion (2012), $110 billion (2011), $80 billion (2010), $40 billion (2005) (note: most of Iran's forex reserves are frozen abroad (2014))
• Composition: In 2007, 10% of the reserves were held in gold, 20% in US dollars (down from 40% in 2006), the rest mostly in Euro and other major currencies (i.e., Japanese yen, British pound and the Swiss sranc). In 2009, Iran's President Mahmoud Ahmadinejad ordered the replacement of the US dollar by the euro in the country's foreign exchange accounts because "it would help decouple Iran from the US banking system."

Gold reserves

In October 2010, Iran's gold reserves hit "record high" as the Central Bank took "preventive measures" to avoid a possible asset freeze by Western countries. In 2009, when the gold price was on average $656 per ounce, a "few hundred tons" of gold were imported, IRNA quoted CBI Governor Mahmoud Bahmani. "At present, the price of each ounce of gold is $1,230. Consequently, the value of the national reserves has risen by a few billion dollars" he said. Iran has changed 15% of its foreign exchange reserves into gold as the number is 1.7% for countries such as India and China (see also: U.S. sanctions against Iran.)

In January 2012, the head of Tehran's Chamber of Commerce reported that Iran had 907 tons of gold, purchased at an average of $600 per ounce and worth $54 billion at the current price. The CBI governor however reports only 500 tons (i.e. above ground gold reserves). The discrepancy is unexplained but the 907 tons could (mistakenly) include below-ground gold reserves (320 metric tons as of 2012) and possibly the gold in Iranian private hands (~100 tons in coins or bullion). In 2014, reports from the Central Bank put its gold stores at 90 tons only, the rest possibly used in barter trade following sanctions.

Inflation and monetary policy

Double digit inflation rates have been a fact of life in Iran for the past 20 years. Between 2002 and 2006, the rate of inflation in Iran has been fluctuating between 12 and 16%.

Monetary policy in Iran has not been successful in meeting the inflation and monetary targets set in the Iranian Five-Year Development Plans, owing mainly to the monetary impact of government spending out of oil revenue. Although the attainment of the inflation targets has improved somewhat recently, the objective of a gradual disinflation to single-digit levels has not been achieved. Moreover, the implicit intermediate target of monetary policy, money growth, has been systematically missed.

The Central Bank is an extension of the Iranian government and as such it does not operate independently. Interest rate is usually set based on political priorities and not monetary targets. There is little alignment between fiscal and monetary policy.

The Central Bank assesses the inflation rate with the use of the prices of 395 goods and services in Iran's urban areas.

High levels of inflation have also been associated with a growth in Iran's money supply. The Central Bank's data suggest that the money supply growth has been about 40% annually. The rapid growth of money supply came from high demands for borrowing capital at the rate of 12% the banks offer, imposed by the Government to make credit accessible to average Iranians and small entrepreneurs. However, this rate is lower than the rate of inflation. This makes the cost of borrowing less than free market cost as determined by supply and demand, based on the inflation rate and investment risk.

Direct instruments

• Banking profit rates – As of 2010, the interest rate charged between banks (i.e. interbank rate) is set by the government of Iran.
• Credit ceiling – the CBI can intervene in and supervise monetary and banking affairs through limiting banks, specifying the mechanisms for use of funds and determining the ceiling of loans and credits in each sector.

Indirect instruments

• Reserve requirement ratio – According to Article 14 of the Monetary and Banking Law of Iran, the CBI is authorized to determine reserve requirement ratio within 10 to 30 percent depending on banks’ liabilities’ composition and field of activity.
• CBI Participation Papers – The Central Bank must obtain approval from the Majlis in order to issue participation papers.
• Open deposit account (ODA): control liquidity through absorption of banks’ excess resources. The CBI pays "profit" to these deposits with the CBI on the basis of specific rules.

Money supply

The International Monetary Fund reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $71.7 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $153.6 billion. According to the CBI, the country's liquidity amounted to some $174 billion by April 2008, $197 billion by October 2009. and over $300 billion in 2011. Estimates put the amount of capital floating in Iran's market at $254 billion in 2012.

Money in circulation reached $700 billion in March 2020 (based on the 2017 pre-devalation exchange rate). (Iran’s monetary base reached 3,721.46 trillion rials (nearly $12 billion) in September 2020 while M2 reached $95 billion (i.e. 26% and 36.2% increase in one year respectively), while the money multiplier effect (which shows how much the monetary base could create new money in the economy) had reached an all-time high), thus explaining the rise in inflation (40%) and of the fall of the Iranian rial in recent years. The Iranian rial has fallen almost five-fold since the beginning of 2018. In turn, Iran's forex reserves have fallen, as Iran is trying to maintain the value of its currency by injecting forex into the market to meet the demand for US dollars by the general public and companies and pay for imports.

In turn, the cause of this is due to inefficient taxation in Iran and tax collection (and tax evasion in particular). Inflation (or loss of purchasing power) being a uniform hidden taxation on the population (unless compensated by an increase in salaries and productivity) which adversely affects the lower strata of the Iranian population the most.

Balance sheet

This section needs to be updated. Please help update this article to reflect recent events or newly available information. (December 2018)

Note: 1/ Includes some liabilities in foreign currency to residents.

Government and private sector debt

As of December 2019, the government debt to banks reached 3,880,000 billion rials (approx. $30 billion, which is a 3.5% rise since 2013 when President Rouhani took office). This means that the government prints money, which is made available to banks the state controls in Iran and then it borrows from these banks at interest. The private sector's debt to banks in the twelve-month period ending on December 20, 2019 reached 14,400,000 billion rials or more than $110 billion.

Foreign relations

Iran is member of the Islamic Development Bank. As of August 2006, the World Bank has financed 48 development projects in the country for a total original commitment of US$3,413 million. World Bank loans to Iran come only from the International Bank for Reconstruction and Development (IBRD). Iran is a member of the World Bank's Multilateral Investment Guarantee Agency. Iran joined the International Monetary Fund (IMF) on December 29, 1945. CBI governors attend IMF's board discussions on Iran on behalf of the government. These meetings are usually held once a year in Washington, D.C. The Central Bank of Iran has an observer status at the annual meetings of the Bank for International Settlements (BIS) in Basel, Switzerland.

Foreign exposure and transactions

• Iran's foreign debt: $22.07 billion in 2010 ($10.6 billion of short-term debts and $11.4 billion of mid-term and long-term debts).
• Iran's deposits in foreign banks: stand at $35 billion while its obligations amount to $25 billion (2007). In 2007, Iran had $62 billion worth of assets held abroad. According to the Bank for International Settlements, Iran's deposits with 39 world banks reached $15.44 billion at the end of March 2012 while its obligations stood at $10.088 billion. In addition it was reported that Iran had between 10–20 billion dollars held in foreign banks in 2011, allegedly because of payment problems by foreign companies to Iran. According to E.U. sources, despite the European sanctions, Iran has still "several billion euros" deposited in accounts in Germany, Italy, Malta, Spain, Greece and Switzerland (2012). As at 2013, only $30 billion to $50 billion of its foreign exchange reserves (i.e. roughly 50% of total) is accessible because of the international sanctions. Iranian media has questioned why assets and foreign reserves weren't repatriated (or converted into gold) while new sanctions were being discussed abroad.
• Transactions: Foreign transactions with Iran amounted to $150 billion between 2000 and 2007 worth of major contracts and both private and government lines of credit. According to the Bank for International Settlements (BIS), the balance of Iran's foreign exchange interactions in foreign banks and financial institutes during Q3 2008 stood above $24.3 billion.

US sanctions

The US Treasury Department has also stepped up its attempt to restrict financing of foreign investment and trade with Iran. In January 2006, Swiss banks UBS and Credit Suisse announced separately that they were halting operations in Iran. In September 2006 the Treasury Department banned all dealings by Bank Saderat Iran with the US financial system, and in January 2007 it also blacklisted Bank Sepah and its British subsidiary, Bank Sepah International. In October 2007 the US Treasury blacklisted Bank Melli and Bank Mellat.

Under pressure from the US, 12 Chinese banks have reduced ties with Iranian banks since early September 2007, but five of them resumed commercial ties in mid-January 2008. In mid-February 2008, the US Treasury alleged that Iran's Central Bank helped the blacklisted banks evade US sanctions, by conducting transactions for them.

Barter trade

The Central Bank possesses limited foreign cash reserves due to the international sanctions and problems in the transfer of funds in and out of country. In 2012, The U.S. unilaterally expanded sanctions, which cut off from the US financial system foreign firms that do business with the central bank. Iran is reportedly making increasing use of barter trade, cash smuggling, gold and local currencies of its trading partners to circumvent the international sanctions. The CBI has been blacklisted by the U.S. government due to the bank's involvement in the Iranian nuclear program and it has been blocked from using SWIFT since March 2012 as a consequence.

Publications

The Central Bank of Iran publishes a variety of periodicals for general and specialist audiences including Economic Trends, Bulletin, Annual Review, Economic Report and Balance Sheet. Other publications include booklets, monographs and brochures. Many of those documents are also available in English.

See also

• Banking and Insurance in Iran
• Construction industry of Iran
• Economy of Iran
• History of banking
• Imperial Bank of Persia
• Iranian oil bourse
• Iranian rial (Iran's currency)
• Islamic banking and finance
• List of central banks
• Ministry of Petroleum of Iran
• Monetary and Banking Research Institute
• Shetab Banking System
• Supreme Audit Court of Iran
• Taxation in Iran
• Tehran Stock Exchange

Citations

1. Weidner, Jan (2017). "The Organisation and Structure of Central Banks" (PDF). Katalog der Deutschen Nationalbibliothek.
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General and cited sources

• Basseer, P.; Clawson, P.; Floor, W. (15 December 1988). "Banking". Encyclopædia Iranica. Vol. III/7. pp. 698–709.
• Clawson, Patrick; Rubin, Michael (2005). Eternal Iran : continuity and chaos. Palgrave Macmillan. ISBN 978-1-4039-7710-6.
• Yeganeh, M. (15 December 1988). "Bānk-e Markazī-e ĪRāN". Encyclopædia Iranica. Vol. III/7. pp. 696–698.

External link

[REDACTED] Media related to Central Bank of Iran at Wikimedia Commons

• Banks of Iran
• 1960 establishments in Iran
• Banks established in 1960
• Central banks
• Economy of Iran
• Government of the Islamic Republic of Iran