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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
Iran appoints new central bank chief
Iran on October 6 appointed Ali Salehabadi as head of its central bank, Iranian state TV reported.
In an article on Salehabadi, think tank Bourse & Bazaar Foundation wrote: “The appointment of Ali Salehabadi as Iran’s new central bank governor reflects the generational shift underway in Iranian policymaking—he was born just one year before the revolution that led to the establishment of the Islamic Republic. But beyond tapping youth, Iranian president Ebrahim Raisi, has also, at least on paper, appointed an individual with technocratic credentials and managerial experience.
“Since 2014, Salehabadi has served as the CEO of the Export Development Bank of Iran (EBDI). From 2006 to 2014, he led the Securities and Exchange Organisation, Iran’s capital markets regulator. In that role Salehabadi was largely successful in driving the development of the Tehran Stock Exchange, despite then-President Mahmoud Ahmedinejad’s skepticism of capital markets development.
“Salehabadi holds a PhD in Financial Management from the University of Tehran. He is a faculty member at Imam Sadeq University, where he completed his master’s degree. His affiliation with Imam Sadeq University, which is shared by economy minister Ehsan Khandoozi and social welfare
36 IRAN Country Report December 2021 www.intellinews.com