Page 27 - IRANRptJul19

recognises the digital payment method as legitimate. It is also laying the groundwork for a future Iranian digital currency that it intends to launch.
8.0 Financial & capital markets 8.1 Bank sector overview
US economic sanctions and their impact on Iran’s banking system
Iran’s economy ministry is poised to establish an “anti-sanctions management room” to combat the heavy US economic sanctions introduced against Iran and most particularly their impact on the Iranian banking system, Tasnim News Agency has reported.
Several key institutions in the Islamic Republic have previously said they had made clear preparations for the Trump administration’s economic war on the country, although several ministers have fallen at the hands of parliamentarians dissatisfied with the response to the consequences of the sanctions, while the governor of the central bank was fired during the summer after the Iranian rial (IRR) went over the cliff edge.
The US has sanctioned almost every important area of Iran’s economy, with the first wave of sanctions triggered in early August and the second wave—which crucially hit Iran’s lifeline oil exports and banking sector—kickstarted in early November. In recent weeks, the central bank, which is among the institutions saying it made long-term plans to deal with the new sanctions regime, has intervened in the hard currency markets. That has helped Iran recoup towards two-fifths of the losses made by the IRR against the dollar in the year to date. The currency stands at around 60% weaker than it was at the start of 2018.
Mohammad Reza Pour-Ebrahimi, chairman of the Iranian parliament’s economic commission, said the economy ministry planned to create its anti-sanctions 'war room' in the next few weeks, along with banking officials.
“The formation of the anti-sanctions management room in the economy ministry aimed at monitoring the Americans’ measures in the banking sector and our moves to strengthen our banking system was discussed at a meeting,” he said.
He said he could not give more details due to the sensitivity of the issue over which a gag order has been placed.
8.1.1 Liquidity / assets
Iran’s facing a liquidity crisis, says US official
The US special representative for Iran, Brian Hook, was cited as saying on January 12 at an oil industry conference in the United Arab Emirates capital Abu Dhabi that sanctions were choking off Iran’s income streams and that Tehran was “facing a liquidity crisis”. Washington wants to see Iran’s oil exports reduced to zero as it continues with its strategy of throttling the nation’s economy to force Tehran to the table to negotiate concessions on its Middle East activities and policies.
Stringent government controls limit access to financing for businesses. State-owned commercial banks and specialized financial institutions account
27 IRAN Country Report July 2019 www.intellinews.com