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However, such a ruling would be impossible to enforce. There are millions of euros worth of cryptocurrencies already being exchanged Iranians on a daily basis through local digital bureaux de change.
7.2 Forex platform
Iran’s central bank launching ‘Diba’ platform to supervise banks’ operations in forex
The Central Bank of Iran (CBI) has launched a new financial platform dubbed “Diba” to supervise banking operations in foreign exchange nationwide, IBENA has reported the CEO of the state-owned Informatics Services Corporation as saying.
According to the information disclosed, Diba will play a role in the regulation of the foreign exchange market, similarly to “Nima” and “Shaparak”, two other financial mechanisms launched by the national lender in recent years against a 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
Germany’s Bundesbank ‘kept multi-billion-euro facility open for sanctioned Iranian banks giving Tehran
Germany’s Bundesbank reportedly kept a multi-billion-euro deposit facility open for Iranian banks, including two that faced fresh US sanctions, giving Tehran a much-needed banking lifeline at a time its access to the global financial system was largely cut off by tightened US sanctions.
Reuters described the facility on December 1 in a report citing central bank
34 IRAN Country Report May 2021 www.intellinews.com