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When Diba is fully operational, banks will be required to integrate their internal systems with the mechanism so that the CBI can observe account-based transactions, the CEO added.
The new system would allow the CBI to have oversight of inter-bank transactions as opposed to card-to-card transactions, which it presently has. Diba will not be in competition with so-called open banking operations where banks interact with third party PSPs. Whilst the system will play a part in these operations, it function is to allow the CBI to access accounts.
Forex traders in Iran in the past week saw the price of the US dollar versus the Iranian rial (IRR) rise some 5% amid the several days of social unrest brought about by the government’s sudden petrol price hike. Prior to this depreciation, the rate had pretty much enjoyed stability for around three months.
"Because of the sensitivity of foreign exchange trades and the significance of CBI regulation in the market, Diba will be used to assist the CBI in having ‘both eyes’ on the market,” the official Najafi added.
8.0​ Financial & capital markets 8.1​ Bank sector overview
Iran says US bank sanctions aim to “blow up” its remaining channels to pay for food, medicine
Iran late on October 8 accused the US of targeting its “remaining channels to pay for food and medicine” in the midst of the coronavirus (COVID-19) pandemic by blacklisting virtually all of the Islamic Republic’s financial sector, cutting it off from the international financial system.
The Trump administration move blacklists 18 Iranian banks that had, so far, escaped most of the US sanctions imposed since the US in May 2018 pulled out of the 2015 nuclear deal between Tehran and six world powers, arguing that only heavy sanctions could bring Tehran to the table to renegotiate restrictions on its nuclear and ballistic missile development programmes and roles in various Middle East conflict zones.
Critically, the move subjects foreign, non-Iranian financial institutions to penalties for doing business with the blacklisted Iranian entities, effectively cutting off Iran from global financial channels essential to trade.
"Today's action to identify the financial sector and sanction eighteen major Iranian banks reflects our commitment to stop illicit access to U.S. dollars," US Treasury Secretary Steven Mnuchin said in ​statement​.
Central Bank of Iran governor Abdolnaser Hemmati dismissed the new sanctions. He said they amounted to propaganda linked to US domestic politics ahead of the November 3 American presidential election. “
The targeted banks are the Amin Investment Bank, Bank Keshavarzi Iran, Bank Maskan, Bank Refah Kargaran, Bank-e Shahr, Eghtesad Novin Bank, Gharzolhasaneh Resalat Bank, Hekmat Iranian Bank, Iran Zamin Bank, Karafarin Bank, Khavarmianeh Bank, Mehr Iran Credit Union Bank, Pasargad Bank, Saman Bank, Sarmayeh Bank, Tosee Taavon Bank, Tourism Bank, and the Islamic Regional Cooperation Bank.
36​ IRAN Country Report November 2020 www.intellinews.com