Page 32 - IRANRptAug18

Iran introduces ban on banks dealing with cryptocurrencies
suffer the damage, and thus have to pay the costs,” he was quoted as saying.
He added that gradual progress in the connectivity project would first deliver limited access to ATMs in Russia and Iran for the citizens of the each country in order to limit the possibility of fraud via point-of-service terminals.
Iran’s central bank has banned Iranian banks from dealing in cryptocurrencies, including Bitcoin, over money-laundering concerns, state news agency IRNA reported on April 23. The country is in the midst of moves aimed at halting its currency crisis caused by steep devaluation of the Iranian rial (IRR) partly on concerns regarding Iran’s economic future given hostility from Washington.
“Banks and credit institutions and currency exchanges should refrain from any sale or purchase of these currencies or taking any action to promote them,” IRNA reported, quoting a central bank circular.
Iran in early April formally unified its official and open market exchange rates and banned money changing outside of banks. The move initially almost wiped out the black market but there are signs that it is returning as Iranians grow frustrated by the search for dollars at the official unified rate.
8.1.7 Bank news
Austria’s Oesterreichische Kontrollbank to facilitate trade with Iran despite US sanctions
Austria’s Oesterreichische Kontrollbank (OeKB) is prepared to facilitate trade between Austrian companies and Iranian counterparts, the chairman of the Vienna Chamber of Economics has said according to a July 25 press release put out by the vice president of the Iranian Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA).
The move would fly in the face of US sanctions due to take effect in August as part of the Trump administration’s plan to put Iran in an economic stranglehold to force concessions on its role in the Middle East. But as a relatively small market player that offers credit facilities to small and medium sized enterprises, OeKB may not be substantially exposed to the American financial system or market and thus might not suffer sanctions.
ICCIMA vice president Pedram Soltani is touring the European Union, following up on opportunities for Iran to escape the US economic assault that may have been partly opened up by the recent visits paid to Austria and Switzerland by Iranian President Hassan Rouhani and Iranian Foreign Minister Mohammad Javad Zarif. Rouhani and Zarif were given firm commitments by the EU that it would endeavour to find ways to help Iran’s economy survive the heavy sanctions. At the start of July, Austria assumed the revolving six-month presidency of the EU and the OeKB announcement might have been prepared as a first step forward by the bloc in creating feasible financing arrangements between Iran and Europe that are shielded from US punitive action.
Founded in 1946, OeKB acts as Austria’s export credit insurance agency. The funds for export financing are raised from its own bonds. "The capacity for trade between Iran and Austria is very high, and so far we have probably only used 10 or 20% of it," Soltani said.
“We know that the current difficulties are short term and will be resolved within six months, one year, two years, or by the end of the [Rouhani presidency]. We
32 IRAN Country Report August 2018 www.intellinews.com