Page 29 - IRANRptAug19

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 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 liquidity expands to IRR18.82 quadrillion in Persian fiscal 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.
29 IRAN Country Report August 2019 www.intellinews.com