Page 40 - IRANRptDec21

appears to have a level of debt that makes it unattractive to buyers.
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 ‘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 sees fresh losses
The Tehran Stock Exchange’s main index, the TEDPIX, lost 7,716 points on November 16, following a loss of 26,174 points on November 15. The falls took it to 1.408mn points, continuing the sour market prevalent in an environment in which the Iranian rial (IRR) continues to lose its footing against the dollar and euro.
The TEDPIX gained 58,000 points (4.1%) to hit 1.456mn points in the previous Persian calendar week (ended on November 12), but the TSE has generally suffered in recent weeks with the market continuing to wobble over nervousness that the negotiations to revive the nuclear deal between Iran and major powers—due to restart on November 29—will not work out as Iran’s new
40 IRAN Country Report December 2021 www.intellinews.com