Page 38 - IRANRptFeb21

Other failed sales concern some retail bank branches in Tehran and elsewhere. MBI and other banks have attempted to dispose of them, but due to the ongoing inflationary effects of the severe devaluation of the Iranian rial, they have struggled to find buyers.
8.2 ​Central Bank policy
Iran's central bank updates directive on carrying or retaining foreign currency in cash
Iran’s central bank orders commercial lenders to provide 3-month ‘coronavirus grace period’ on loans
On the banking front, which for years has been going through a grindingly slow consolidation, June 2020 saw officials move to create a “mega bank”. State-owned Bank Sepah—Iran’s first ever bank, it opened in 1925—was merged with military-affiliated Bank Hekmat Iranian and Mehr Eqtesad Bank. Three other military-affiliated lenders—Ansar Bank, Ghavamin Bank and Kosar Credit Institution—were then merged with Sepah at the end of last year. The government said ​the mega-merger​ demonstrated its commitment to curb the military's role in the economy.
The Central Bank of Iran (CBI) has issued an updated directive dictating the amount of foreign currency in cash that people can retain or carry, LiT reported. ​According to the new directive, individuals can carry up to €10,000 or its equivalent in hard currency. The decree added that a person carrying or keeping more than this value in cash would need to have multiple documents showing they were entitled to do so. The move is the latest in a series of special measures brought in by the Iranian government to manage the free market, with the Iranian rial (IRR) hitting all-time lows against the dollar this week.
The updated central bank rules add that those who have more than €10,000 or its equivalent in hard currency have three months to either deposit their cash in a foreign currency bank account or sell it at an exchange bureau or credit institution. It remains unclear how this method will be policed or if fines will be levied on those who fail to comply.
According to the governor of the CBI, Abdolnaser Hemmati, some $280bn has been injected into the local foreign exchange market in the past 15 years to support the rial.
The regulations for taking hard currency in cash out of Iran have not been changed. There is a limit of €5,000 that applies to those travelling by air, whereas the limit is €2,000 for those travelling by land.
This is while there is no limit on carrying foreign currency into Iran. Those bringing in hard currency may do so potentially with no questions asked.
The Central Bank of Iran (CBI) has ordered all commercial banks to offer a three-month repayment grace period on loans to counter financial difficulties caused to people by the coronavirus pandemic.
Iranian businesses are losing millions of dollars a day due to the collapse of footfall in the country, with so many people staying indoors and not venturing out to raise their chances of not contracting the virus, also known as COVID-19.
The CBI took its decision following an approval given by the governmental Money and Credit Council to help commercial operators through the ongoing epidemic. Loan repayment deferrals from March 20 will also be available to urban and suburban travel operators, including air, road and rail enterprises. In addition, seaports will be exempt from loan repayments for the awarded three months.
38​ IRAN Country Report February 2021 www.intellinews.com