Page 39 - IRANRptNov21

Tehran rejects money laundering conviction of Iranian central bank in Bahrain
conservative political thought and liberal economic planning.”
"The role of the central bank in preserving the value of the national currency and controlling inflation is very fundamental," Raisi said after Salehabadi's appointment, according to official news agency IRNA.
Iran’s economy is still under punishing US sanctions brought in by ex-American president Donald Trump, with its banks almost entirely cut off from the global financial system. Annual inflation stands at more than 50% and the national currency, the rial has lost over three-quarters of its value against the US dollar during the Trump sanctions period, which started in mid-2018.
A conviction of money laundering secured in a Bahraini court against the Central Bank of Iran (CBI) has been rejected by Iran’s foreign ministry, Rudaw reported on August 2.
The court on July 29 hit the CBI and several other Iranian banks with fines for money laundering of Bahraini dinar (BHD) 1mn ($2.7mn) each. The ruling was recorded as the single largest economic ruling ever made by a Bahraini court. Bahrain has historical links to Iran with a significant proportion of the country’s population Shi’ite Muslim.
As part of the ruling, Bahrain’s Future Bank and six of its officials were also convicted, with Future Bank fined and the officials handed sentences of five to 10 years in jail. The court also confiscated approximately $1.3bn in laundered funds from the multiple parties implicated in the ruling.
The Bahraini public prosecutor said the CBI instructed Future Bank to complete transactions via an “unapproved transfer system,” Bahraini state media reported.
The unapproved money transfer system was likely the traditional Hawala money transfer system, which uses intermediaries with money in their accounts to transfer sums on other people’s behalf.
8.1.1 Liquidity / assets
Iran’s liquidity expands to IRR18.82 quadrillion in Persian year ending March 2019
The Central Bank of Iran (CBI) has reported on July 8 rial liquidity grew 23.1% to reach IRR18.82 quadrillion (around $447bn) in the previous Persian calendar year (to March 20).
Liquidity continues to grow due to the devaluation of the rial against a basket of other currencies. With prices continuing to creep upwards, the pace of growth is likely to be higher than the CBI’s official statistics.
The share of M2 money stood at in March at IRR2.85bn (more than $67.6bn) “Quasi money” – money sitting in bank savings accounts – stood at IRR15.97 quadrillion (above $379bn) registering a growth of 19.6% y/y.
Overall, banks and financial institutions in the country are said to hold above IRR1 quadrillion in assets, which the domestic economy is struggling to reabsorb.
8.1.2 Loans
Iran’s banks ‘lent IRR9,750 trillion to businesses in 2019-2020 Persian year’
Iran’s banks lent Iranian rial (IRR) 9,750 trillion ($62.9bn at the free market rate, $232bn at the official rate) to businesses in the 2019-2020 Persian year (ended March 19), marking a rise of IRR2,012tn or 26% y/y, according to Central Bank of Iran (CBI) data published by DEN Group on April 30.
39 IRAN Country Report November 2021 www.intellinews.com