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The drafted system would also mean e-payment firms paying a portion of the fees they get from banks to major acceptors, such as online shops.
The banks reportedly said the proposal would reduce their annual expenses by around 16% per annum.
Payment transaction costs account for some 60% of total fees paid by banks in Iran.
8.2 Central Bank policy
Iran’s central bank chief introduces “100 toman” note
Iran's central bank updates directive on carrying or retaining foreign currency in cash
Central Bank of Iran (CBI) governor Abdol Nasser Hemmati has showcased a new “Iran Cheque” banknote with the last four zeros greyed out, IRIB reported.
Iran is transitioning away from the exhausted Iranian rial (IRR) which has lost its value several times over since the 1979 Islamic Revolution. The introduction of the banknote comes as part of the wider Monetary and Reform Banking Law. It aims to remove four zeros from the currency and officially rename it the “toman” within the next few months.
Colloquially in the Islamic Republic, the toman represents 10 times the value of the rial and it is the de facto currency used in daily transactions. For instance, IRR10,000 is known informally as Iranian toman (IRT) 1,000 and prices, for instance, are typically stated in that way online.
The “Iran Cheque” is for IRR1,000,000 (around $5), but with four zeros faded out it appears as “100”.
Iran's SNN reported that the CBI was also reissuing the IRR500,000 note, with a "50" in the top left.
As part of the switch to the toman, there will be a transition period of three years during which both currencies (rials and tomans) will be simultaneously valid.
The Central Bank of Iran (CBI) has issued an updated directive dictating the amount of foreign currency in cash that people can retain or carry, LiT reported. According to the new directive, individuals can carry up to €10,000 or its equivalent in hard currency. The decree added that a person carrying or keeping more than this value in cash would need to have multiple documents showing they were entitled to do so. The move is the latest in a series of special measures brought in by the Iranian government to manage the free market, with the Iranian rial (IRR) hitting all-time lows against the dollar this week.
The updated central bank rules add that those who have more than €10,000 or its equivalent in hard currency have three months to either deposit their cash in a foreign currency bank account or sell it at an exchange bureau or credit institution. It remains unclear how this method will be policed or if fines will be levied on those who fail to comply.
According to the governor of the CBI, Abdolnaser Hemmati, some $280bn has been injected into the local foreign exchange market in the past 15 years to support the rial.
The regulations for taking hard currency in cash out of Iran have not been changed. There is a limit of €5,000 that applies to those travelling by air, whereas the limit is €2,000 for those travelling by land.
This is while there is no limit on carrying foreign currency into Iran. Those
40 IRAN Country Report October 2020 www.intellinews.com
