Page 36 - IRANRptOct21

Iran’s central bank launching ‘Diba’ platform to supervise banks’ operations in forex
The Central Bank of Iran (CBI) has launched a new financial platform dubbed “Diba” to supervise banking operations in foreign exchange nationwide, IBENA has reported the CEO of the state-owned Informatics Services Corporation as saying.
According to the information disclosed, Diba will play a role in the regulation of the foreign exchange market, similarly to “Nima” and “Shaparak”, two other financial mechanisms launched by the national lender in recent years against a backdrop of market volatility and disruption caused by US sanctions.
“The Diba [system] is a regulatory platform like Shaparak, developed to regulate the function of payment service provider (PSP) companies,” Aboutaleb Najafi said, adding: “Banks have begun to offer open banking services, which allows [software] developers to create applications and offer innovative financial instruments [and mechanisms].”
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
Central Bank of Iran gets ‘eleventh hour’ governor
Veteran Iranian economics expert Akbar Komijani has been made the new governor of the Central Bank of Iran (CBI), stepping up from the acting governor role, Mehr News Agency reported on June 30.
Komijani has held several key positions over the years in different Iranian governments and has also served as a lecturer and professor at the University of Tehran. He was also a CBI deputy governor from 2007-2013, taking the roles of research deputy and director of monetary and financial economics. Prior to the Islamic Revolution, Komijani was educated in the US. He has a Ph.D. in economics from the University of Wisconsin.
According to CBI regulations, the bank cannot be run by an acting governor over an extended period so the Cabinet has agreed that Komijani will take over as governor until mid-August when the moderate Rouhani government will
36 IRAN Country Report October 2021 www.intellinews.com