Page 26 - IRANRptJul19

collapse in the value of the rial since early last year when it became clear that the US was reinstating a regime of heavy sanctions aimed at Iran.
Under the changed list of official rates, the US dollar remained at IRR42,000. Iranian officials have moved away from actively using the currency in the country’s daily dealings, avoiding US sanctions.
The pound sterling, meanwhile, weakened to IRR53,091 and the euro was down to settle at IRR47,381. A Swiss franc now fetches IRR42,554, slightly less than before, while the Swedish crown is also down at IRR4,490.
On the free market by mid-afternoon on July 2, the dollar was trading at IRR130,000, the euro at IRR146,680 and the pound sterling at IRR164,250. The pound sterling saw the biggest drop in value against its two main rivals, falling from IRR168,000 the day before.
According to the much used but banned Iranian exchange rates website Bonbast.com, the benchmark Azadi gold sovereign was selling for IRR43,300,0000, while the Imami gold coin was trading at IRR45,500,000.
7.1 Cryptocurrency
Peyman, the first government- endorsed cryptocurrency launches in Iran
The gold-backed Peyman (PMN), the first government-endorsed Iranian cryptocurrency, was officially shown to the public during a “keying ceremony”, IBENA reported on June 24.
Iran has mooted the idea of a cryptocurrency to get around stringent US sanctions which have crippled trade between the country and much of the outside world. However, whether the new crypto will be widely used for international trade or even for trade conducted inside Iran remains to be seen.
The Peyman (“Covenant” in Persian) was unveiled by private company Ghoghnoos Co, the first non-banking firm in Iran to launch a cryptocurrency. It has done so in conjunction with four banks in the country. Banks Mellat, Melli, Pasargad and Parsian are backing the project. The Iran Fara Bourse (for over-the-counter exchange trading) will be the first trading centre to provide for transactions in the digital currency.
Valiollah Fatemi, a director of Ghoghnoos, told Iranian media outlets: “The token can function as a wallet and channel [banks’] excess properties into sellable tokens.”
Fatemi said of the launch: “Peyman became the first gold-backed Iranian token to be launched on June 22. In the executive decisions regarding the supply of this token, it is only for the use of companies.”
According to the company , one billion units of the Peyman will be released by the participating banks and financial technology group TOSAN.
On January 29, an initial 13-page draft on regulating the use of cryptocurrencies in Iran was released by the country’s central bank.
The draft reportedly suggests heavy oversight should be exercised by the Central Bank of Iran (CBI) while the market develops. “Version 0.0”, as the drafted rules have been dubbed, is meant to bring clarity to the utilisation of the global digital payment method and “allow traders to plan for their future”.
After initially banning the use of cryptocurrencies such as Bitcoin, the CBI now
26 IRAN Country Report July 2019 www.intellinews.com