Page 42 - IRANRptNov21

8.2 Central Bank policy
Iran’s central bank ‘preparing to issue cryptocurrency’
Iran’s e-payment transactions up 17.4% y/y in sixth Persian month
The Central Bank of Iran (CBI) is making preparations to issue a cryptocurrency, semi-official news agency Mehr reported a banking official as saying on September 1.
Ismael Lellahgani was cited as saying that the CBI by placing a virtual currency in circulation intended to cut money printing costs and reduce risk in domestic private sector electronic financial transactions.
For several months, the CBI has been working on permitting the processing of goods imports using domestically mined Iranian rial-based cryptocurrencies. In late April, the central bank approved import payments made in certain cryptocurrencies.
A new central bank decree outlines how Iranian cryptocurrencies for use on the market must be from miners authorised by the Ministry of Industry, Mines and Trade.
Moreover, authorised banks and foreign exchange outlets are only permitted to pay for imports in cryptocurrencies in accordance with CBI guidelines.
Iran puts to use cryptocurrencies in neutralising some impacts of US sanctions on Iranian financial transactions with the outside world.
Iran’s e-payment transactions network, Shaparak, processed more than 3.42bn transactions in the sixth Persian calendar month to September 21, marking a 17.38% y/y increase, Tehran’s Financial Tribune has reported, citing official data.
Payments with cards were up 8.49% m/m, while the value of transactions increased by 20% m/m and 32.75% y/y to Iranian rial (IRR) 6.4qn ($23.7bn at the free exchange rate).
Card payments in Iran continue to grow as cash falls by the wayside due to increasing prices and the Central Bank of Iran (CBI) refusing to print higher denomination bills than Iranian rial (IRR) 1mn ($3.70 at the free market exchange rate). The jump in digital payments can also be attributed to growth in online banking payments through applications and an expansion of e-commerce.
8.3 Stock market
Tehran Stock Exchange stages recovery after minister, company chief address stark losses
The main index of the Tehran Stock Exchange (TSE), the Tedpix, clocked gains on November 1 and 2, rebounding from a week of stark losses, after the finance and economic affairs minister Ehsan Khandouzi held an especially arranged meeting with 30 listed companies to address panic among investors.
The Tedpix in the last Iranian calendar week (ended October 29) shed 43,000 points, or 3%, falling to 1.393mn points. On November 1 it closed 21,000 points higher, while on November 2 it recovered by another 14,665 to close at 1.376mn.
Last week’s precipitous market drop sparked some uproar on social media, with critics saying the Raisi administrtion’s handling of the situation was inadequate.
Khandouzi and the company representatives exchanged ideas on resolving market issues and developing the economy, according to Iranian media reports.
42 IRAN Country Report November 2021 www.intellinews.com