Page 30 - IRANRptMay20

8.0​ Financial & capital markets 8.1​ Bank sector overview
Iran moves to ease additional financial strain on citizens as COVID-19 crisis continues
Iran raises card-to-card transfer limit to cut down on coronavirus threat from bank visits
Iranian President Hassan Rouhani has announced further plans to ease financial strains on citizens amid the coronavirus (COVID-19) crisis, ISNA reported.
The Central Bank of Iran (CBI) previously announced that it would offer a commercial loan repayment holiday of ​three months​ for businesses in the country.
But as part of wider efforts, employees can now defer health insurance, income tax payments and utility bills for up to the next three months starting from March 17.
In addition, the monthly stipend sent to the poorest deciles of Iran will be increased during the continuing Covid-19 outbreak in the country.
Banks have, meanwhile, been instructed to remove restrictions and limits on cheque payments for businesses.
Banks in the country are working on reduced hours, Banker.ir reported earlier on March 1.
Iran’s battle against its severe coronavirus epidemic now includes an increased transfer limit on card-to-card financial transfers to cut down on close contact between people requiring visits to bank branches and the exchanging of paper money.
The limit has been increased to Iranian rial (IRR) IRR100mn ($645 at the free market rate, $2,377 at the official rate) from IRR30mn, according to a memo sent on March 9, Banker.ir reported.
Central Bank of Iran (CBI) official Davoud Mohammad-Beigi announced the move.
Card-to-card payment in Iran is the most common large transaction method, whereby users transfer funds to one another via their card details. This was previously largely conducted on ATMs but it is now also available via mobile payment applications.
Bank branches in Iran are working according to limited hours in the run-up to the Nowruz Persian new year holidays that start on March 19 due to the ongoing fight to contain the spread of the coronavirus. Banks and businesses will close for the holiday break.
8.1.1 ​Liquidity / assets
Iran’s liquidity expands to IRR18.82 quadrillion in Persian year ending March 2019
The Central Bank of Iran (CBI) has reported on July 8 rial liquidity grew 23.1% to reach IRR18.82 quadrillion (around $447bn) in the previous Persian calendar year (to March 20).
Liquidity continues to grow due to the devaluation of the rial against a basket of other currencies. With prices continuing to creep upwards, the pace of growth is likely to be higher than the CBI’s official statistics.
The share of M2 money stood at in March at IRR2.85bn (more than $67.6bn) “Quasi money” – money sitting in bank savings accounts – stood at IRR15.97 quadrillion (above $379bn) registering a growth of 19.6% y/y.
30​ IRAN Country Report May 2020 www.intellinews.com