Central Bank of Iran#Foreign relations

{{See also|Economic history of Iran}}

The first attempt at introducing paper currency in Iran occurred during the Mongol Ilkhanate of the 13th century CE. The innovation, developed in Song dynasty China, did not take hold in Iran, and paper currency did not return to Iran in any significant manner for several centuries.{{harvnb|Clawson|Rubin|2005|p=168}}

{{Further|Banking in Iran#History}}

File:Imperial Bank of Persia.jpg

During the Qajar era, in 1889, the British-owned Imperial Bank of Persia (Bānk-e Šāhī) was founded and it was given the exclusive right to issue bank notes in Iran. In 1890, it introduced the first bank notes in Iran, ranging from 1 to 1,000 tomans.{{harvnb|Basseer|Clawson|Floor|1988}} The bank did not do much to strengthen the Iranian capital formation or support then-currency of Iran, qiran.

To compete with the British bank, Imperial Russia also opened the Russian Loan and Development Bank.{{sfn|Clawson|Rubin|2005|p=41}} In 1898, Polyakov's Bank Esteqrazi was bought by the Tzarist government and later passed into the hands of the Iranian government by a contract in 1920.{{Cite web |title=History of Banking in Iran |url=http://www.parstimes.com/history/banking_history.html |url-status=live |archive-url=https://web.archive.org/web/20120404082048/http://www.parstimes.com/history/banking_history.html |archive-date=April 4, 2012 |access-date=November 11, 2012 |publisher=Parstimes.com}}{{Unreliable source?|certain=y|date=May 2019}}

During the Pahlavi era, in 1927, the first state-owned Iranian bank, Bank Melli Iran, was established by the government.{{harvnb|Clawson|Rubin|2005|p=55}} On 30 May 1930, it took the responsibility to function as Iran's central bank, and took the rights of the Imperial Bank for £200,000, while it acted as a commercial bank at the same time.{{harvnb|Yeganeh|1988}} The bank's primary objective was to facilitate government's financial transactions and to print and distribute the Iranian currency (rial and toman). For more than three decades, Bank Melli Iran acted as the central bank of Iran and was charged with the responsibility to maintain the value of Iranian rial. In 1955, the bank was given the responsibility to supervise the national banking system.

In August 1960, the Iranian government established the Central Bank of Iran (CBI) and separated all central banking responsibilities from Bank Melli Iran and assigned it to the newly-formed central bank. Scope and responsibilities of the Central Bank of the Islamic Republic of Iran (CBI) have been defined in the Monetary and Banking Law of Iran (1960).

Following the Iranian revolution, the Central Bank of Iran was renamed to "the Central Bank of the Islamic Republic of Iran", and Iran's banking system adhered to the new Islamic rules that prohibit earning or paying interest in 1983.

The Central Bank was cyberattacked by IRLeaks in August 2024. The central bank was one of 20 banks out of 29 Iranian banks, attacked by the group. The cyber attack on the Iranian banking sector was described by Politico as the "worst attack" in Iranian history. The Iranian government was forced to pay ransom to the hackers in order to secure the data of Iranian customers.

In December 2023, Central Bank and Minister of Economy ordered merger of private Nour Credit Institution with 400,000 billion rial debt into government Bank Melli.{{Cite web|title=جزئیات انتقال موسسه سابق نور به بانک ملی |url=https://dolat.ir/detail/428862 |access-date=2023-12-01 |website=dolat.ir|language=fa}}

File:Bank Markazi Tower 0204.jpg, the headquarters of the Central Bank of Iran]]

The Money and Credit Council (MCC) is the highest banking policy-making body of Bank Markazi. Its permanent members include the CBI Governor, the Finance and Economy Minister, two Ministers chosen by the Cabinet, The Head of the Chamber of Commerce, the General Prosecutor and two lawmakers (MPs).{{Cite web |title=Iran Today-Iran's Banking System-12-14-2010-(Part1) |url=https://www.youtube.com/watch?v=xj0XjTHN1wQ |url-status=live |archive-url=https://web.archive.org/web/20131019051158/http://www.youtube.com/watch?v=xj0XjTHN1wQ |archive-date=2013-10-19 |access-date=2012-01-08 |publisher=YouTube}}

Each year, after approval of the government's annual budget, the CBI presents a detailed monetary and credit policy to the MCC for approval. Thereafter, major elements of these policies are incorporated in the five-year economic development plan.{{Cite web |title=About this Collection - Country Studies - Digital Collections - Library of Congress |url=https://www.loc.gov/collections/country-studies/about-this-collection/ |url-status=live |archive-url=https://web.archive.org/web/20190527135915/https://www.loc.gov/collections/country-studies/about-this-collection/ |archive-date=2019-05-27 |access-date=2019-01-25 |website=Library of Congress}} MCC meets every three months.{{Cite web|url=https://firouzeh.com/iraninvestment/IIM-AprMay15.pdf|title=فیروزه|website=firouzeh.com|accessdate=25 February 2024}}

In practice, the ability of the banking system to create money is not much constrained by the amount of scriptural money through fractional reserve banking. Indeed, most banks first extend credit and look for reserves later.{{Citation needed|date=August 2019}} The Iranian Central Bank needs more independence from the government in order to combat inflation, according to the country's Parliament Research Center.{{Cite magazine |title=Iran's Central Bank Lacks Independence, Parliament Study Says |url=http://www.businessweek.com/news/2010-07-02/iran-s-central-bank-lacks-independence-parliament-study-says.html |magazine=Businessweek |access-date=2012-01-08}}{{dead link|date=April 2023|bot=medic}}{{cbignore|bot=medic}} As of 2010, Iran's Central Bank, is not able to conduct a "proactive" monetary policy (e.g. it needs Majlis' approval before issuing participation bonds) and has no control over the government's fiscal policy.{{Cite news |date=2010-07-02 |title=Iran's Central Bank Lacks Independence, Parliament Study Says |work=Bloomberg |url=https://www.bloomberg.com/news/articles/2010-07-02/iran-s-central-bank-lacks-independence-parliament-s-research-center-says |url-status=live |access-date=2017-03-06 |archive-url=https://web.archive.org/web/20160304140318/http://www.bloomberg.com/news/articles/2010-07-02/iran-s-central-bank-lacks-independence-parliament-s-research-center-says |archive-date=2016-03-04}}

The current combination of the Central Bank's board of directors are the President, Economy and Commerce Ministers, Deputy-President for strategic planning, and a Minister selected by the Cabinet.{{Cite web |title=Iran's Central Banker Threatens To Quit In Protest |url=http://www.payvand.com/news/10/nov/1144.html |url-status=live |archive-url=https://web.archive.org/web/20110629095330/http://www.payvand.com/news/10/nov/1144.html |archive-date=2011-06-29 |access-date=2012-01-08 |publisher=Payvand.com}}

Seven economists with at least 15 years of work experience were to become members of the general assembly according to a new law proposed by the Majlis in 2010, thus moving this body from being state-dominated to one where the private sector has greater say in

the decision-making process. The tenure of each member would be for 10 years and only for one term.{{Cite web |title=No. 3854 | Domestic Economy | Page 4 |url=http://www.iran-daily.com/1389/10/5/MainPaper/3854/Page/4/Index.htm# |url-status=live |archive-url=https://web.archive.org/web/20120401132553/http://www.iran-daily.com/1389/10/5/MainPaper/3854/Page/4/Index.htm |archive-date=2012-04-01 |access-date=2012-01-08 |publisher=Irandaily}}{{Cite web |title=Archived copy |url=http://www.turquoisepartners.com/iraninvestment/IIM-Jan11.pdf |url-status=dead |archive-url=https://web.archive.org/web/20110809205723/http://www.turquoisepartners.com/iraninvestment/IIM-Jan11.pdf |archive-date=2011-08-09 |access-date=2011-02-01}} Then President Mahmoud Ahmadinejad criticized this proposal and said that it is important for the Central Bank of Iran not to fall under private control "because it would not benefit the Iranian people" over the long run.{{Citation needed|date=August 2021}}

{{Main|Governor of the Central Bank of Iran}}

The President of Iran proposes a person as the governor of CBI, who must be verified by the general assembly and appointed by a presidential decree.

{{See also|Economy of Iran|Iranian rial|Foreign direct investment in Iran}}

The objectives of the Central Bank of the Islamic Republic of Iran as per its charter and according to section 10 of the Monetary and Banking Law of Iran (MBAI)[http://www.cbi.ir/page/2234.aspx Monetary and Banking Law of Iran] are as follows:

• Maintaining the value of national currency
• Maintaining the equilibrium in the balance of payments
• Facilitating trade-related financial transactions
• Improving the economic growth potential of the country

To achieve the objectives as stated in the MBAI, CBI is endowed with the responsibility of fulfilling the following functions:{{Cite web |date=2011-09-19 |title=General Information |url=http://www.cbi.ir/page/GeneralInformation.aspx |url-status=live |archive-url=https://web.archive.org/web/20120106223642/http://www.cbi.ir/page/GeneralInformation.aspx |archive-date=2012-01-06 |access-date=2012-01-08 |publisher=Cbi.ir}}

• Issuance of notes and coins
• Supervision of banks and credit institutions
• Formulation and regulation of foreign exchange policies and transactions
• Regulation on gold transactions
• Formulation and regulation on transactions and inflow/outflow of Domestic currency

{{See also|Banking and insurance in Iran#Islamic banking|Islamic Development Bank|l1=Banking and insurance in Iran § Islamic banking}}

After the Islamic Revolution, the Central Bank was mandated to establish an Islamic banking law. In 1983 the Islamic Banking law of Iran was passed by Majlis.{{Cite web |title=Iran's interest-free banking law |url=http://www.cbi.ir/simplelist/1457.aspx |url-status=live |archive-url=https://web.archive.org/web/20070203022325/http://www.cbi.ir/simplelist/1457.aspx |archive-date=2007-02-03 |access-date=2007-03-11 |publisher=Central Bank of Iran}} This law describes and authorizes an Iranian Shiite version of Islamic commercial laws (as differentiated from a less 'liberal' Sunni version).{{Cite web |title=Guide to Iranian Market |url=http://www.irtp.com/laws/the%20law%20for%20usury%20free%20banking/index.asp |url-status=usurped |archive-url=https://web.archive.org/web/20090530032222/http://www.irtp.com/laws/the%20law%20for%20usury%20free%20banking/index.asp |archive-date=30 May 2009 |access-date=11 January 2022 |website=www.irtp.com}} According to this law, Iranian banks can only engage in interest-free Islamic transactions (as interest is considered usury or "riba" and is forbidden by Islam and the holy book of Qur’an).

In practice, Iran uses what are officially termed "provisional" interest rates, as rates paid to depositors or received from borrowers should reflect the profits or losses of a business.{{Cite web |title=Iran Daily – Domestic Economy – 04/19/09 |url=http://www.iran-daily.com/1388/3377/html/economy.htm |url-status=dead |archive-url=https://web.archive.org/web/20090421152613/http://www.iran-daily.com/1388/3377/html/economy.htm |archive-date=April 21, 2009 |access-date=2010-08-08}} Under these rules, deposit rates, known as "dividends", are in theory related to a bank's profitability. In reality, however, these dividends have become fixed rates of return—depositors have never lost their savings because of losses made by the banks and almost never received returns larger than the provisional ex-ante profit rates. Interest charged on loans is presented as "fees" or a share of corporate profits.Iran Financial Services Forecast, Economist Intelligence Unit, August 18, 2008 All such transactions are performed through (12) Islamic contracts, such as Mozarebe, Foroush Aghsati, Joalah, Salaf, and Gharzolhasaneh. Details of these contracts and related practices are outlined in the Iranian Interest-Free banking law and its guidelines. Examples are:

1. Gharzolhasaneh: An interest-free, non-profit, loan extended by a bank to a real or legal person for a definite period of time.
2. Joalah: The undertaking by one party (the jael, Bank or employer) to pay a specified money (the joal) to another party in return for rendering a specified service in accordance with the terms of the contract. The party rendering the service shall be called "Amel" (the Agent or Contractor).
3. Mosaqat: A contract between the owner of an orchard or garden with another party (the Amel or Agent) for the purpose of gathering the harvest of the orchard or garden and dividing it, in a specified ratio, between the two parties . The harvest can be fruit, leaves, flowers, etc. of the plants in the orchard or garden .
4. Mozaraah: A contract where the bank (the Mozare) turns over a specified plot of land for a specified period of time to another party (the Amel or Agent) for the purpose of farming the land and dividing the harvest between the two parties at a specified ratio.
5. Mozarebe: A contract wherein the bank undertakes to provide the cash capital and other party (the Amel or Avent) undertakes to use the capital for commercial purposes and divide the profit at a specified ratio between the two parties at the end of the term of the contract.

Sharia-compliant assets has reached about $400 billion throughout the world, according to Standard & Poor’s Ratings Services, and the potential market is $4 trillion.{{Cite web |title=Iran Daily – Economic Focus – 06/06/07 |url=http://iran-daily.com/1386/2860/html/focus.htm |url-status=dead |archive-url=https://web.archive.org/web/20070710075729/http://iran-daily.com/1386/2860/html/focus.htm |archive-date=July 10, 2007 |access-date=2010-08-09}}{{Cite web |title=Iran, biggest Shariah-compliant market: The Banker |url=http://www.payvand.com/news/09/nov/1122.html |url-status=live |archive-url=https://web.archive.org/web/20120609142010/http://www.payvand.com/news/09/nov/1122.html |archive-date=2012-06-09 |access-date=2012-01-08 |publisher=Payvand.com}}

Iran, Saudi Arabia and Malaysia are at the top with the biggest sharia-compliant assets.{{Cite web |date=2009-12-11 |title=Iran 2nd in Islamic Banking Assets |url=http://www.zawya.com/Story.cfm/sidZAWYA20091211065734/Iran%202nd%20in%20Islamic%20Banking%20Assets%20 |url-status=live |archive-url=https://archive.today/20130105234851/http://www.zawya.com/Story.cfm/sidZAWYA20091211065734/Iran%202nd%20in%20Islamic%20Banking%20Assets%20 |archive-date=2013-01-05 |access-date=2012-01-08 |publisher=Zawya}}

According to the IMF, Islamic banking forbids pure monetary speculation and stresses that deals should be based on real economic activity and therefore poses less risk than conventional banking to the stability of financial systems.{{Cite web |date=6 July 2015 |title=CBI's Fiqh Council Reopening With New Mandate |url=https://financialtribune.com/articles/economy-business-and-markets/20661/cbi-s-fiqh-council-reopening-with-new-mandate |url-status=live |archive-url=https://web.archive.org/web/20190126000933/https://financialtribune.com/articles/economy-business-and-markets/20661/cbi-s-fiqh-council-reopening-with-new-mandate |archive-date=26 January 2019 |access-date=25 January 2019 |website=Financial Tribune}}

{{See also|Islamic banking|Fractional-reserve banking#Criticisms of fractional-reserve banking}}

Critics believe that the Iranian Interest-Free banking law has simply created the context for legitimizing usury or riba. In reality all banks are charging their borrowers a fixed pre-set amount at a rate of interest that is approved by the Central Bank at least once a year. No goods or services are exchanged as part of these contracts and banks rarely assume any commercial risk. High value collateral items such as real estate, commercial paper, bank guarantees and machinery eliminate any risk of loss. In case of defaults or bankruptcies, the principal amount, the expected interest and the late fees are collected through possession and or sale of secured collaterals.

{{See also|Communications in Iran#Electronic commerce|Shetab Banking System|Iranian Economic Reform Plan|Asian Clearing Union|l1=Electronic commerce in Iran}}

In 2005, the government obliged the Central Bank of Iran and the Iranian banks, mostly state owned, to set up all the necessary infrastructures (regulatory, hardware, software) for fully launching e-money in Iran by March 2005. While this plan has not yet fully materialized, local debit cards are now commonplace and have removed the main obstacle to the growth of e-commerce (in the national scale) as well as the full roll out of e-government initiatives.{{Cite web |last=Commission |first=Australian Trade |title=Information and communications technology (ICT) to Iran |url=http://www.austrade.gov.au/ICT-to-Iran/default.aspx |archive-url=https://web.archive.org/web/20080419083058/http://www.austrade.gov.au/ICT-to-Iran/default.aspx |archive-date=April 19, 2008 |website=www.austrade.gov.au}} However, Iran remains largely a cash-based economy.

The Central Bank has developed the Real Time Gross Settlement System (SATNA) as the main center for settlement of Iranian banks' transactions in rial.

In 2011, two new payment systems were launched: Scripless Securities Settlement System (TABA) as the electronic infrastructure for placement and settlement of various securities, including governmental and CBI participation papers. The launching of the automated clearing house system (PAYA) for processing individual and multiple payment orders, connection of Iran's Interbank Information Transfer Network (Shetab) to other ATM and POS switch systems for the acceptance of international bank cards, designing of the electronic card payment system (SHAPARAK) for the centralization and reorganization of POSs.{{Cite web |title=Annual Review for 1389(2010/11) |url=http://www.cbi.ir/showitem/9506.aspx |archive-url=https://web.archive.org/web/20120816054501/http://www.cbi.ir/showitem/9506.aspx |archive-date=August 16, 2012 |website=www.cbi.ir}}

Following international sanctions during the Russian invasion of Ukraine which blocked Russia from using SWIFT, Mohsen Karimi, who is the international deputy governor at the Central Bank of Iran, and his Russian counterpart Vladislav Gridchin, who is a representative of the Central Bank of Russia, announced that both nations developed ways to bypass SWIFT.{{cite news |url=https://www.dw.com/fa-ir/%D8%A7%D8%AA%D8%B5%D8%A7%D9%84-%D8%B3%D8%A7%D9%85%D8%A7%D9%86%D9%87%D9%87%D8%A7%DB%8C-%D8%A8%D8%A7%D9%86%DA%A9%DB%8C-%D8%A7%DB%8C%D8%B1%D8%A7%D9%86-%D9%88-%D8%B1%D9%88%D8%B3%DB%8C%D9%87-%D8%A8%D8%B1%D8%A7%DB%8C-%D8%AF%D9%88%D8%B1-%D8%B2%D8%AF%D9%86-%D8%B3%D9%88%D8%A6%DB%8C%D9%81%D8%AA/a-64559337 |title=اتصال سامانه‌های بانکی ایران و روسیه برای دور زدن سوئیفت: بانک مرکزی ایران از اتصال سامانه‌های پیام‌رسان بانک‌های ایران و روسیه خبر داد. حدود ۷۰۰ بانک روسی می‌توانند با بانک‌های ایران تراکنش مالی داشته باشند. این اقدام در راستای دور زدن سامانه بین‌المللی سوئیفت صورت گرفته است. |trans-title=Connecting Iranian and Russian banking systems to bypass SWIFT: The Central Bank of Iran announced the connection of the messaging systems of Iranian and Russian banks. Around 700 Russian banks can conduct financial transactions with Iranian banks. The move is aimed at bypassing the international SWIFT system. |language=fa |work=dw.com |date= |access-date=24 October 2023}}{{cite news |url=https://www.independentpersian.com/node/302516/%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF/%D8%A7%D8%AA%D8%B5%D8%A7%D9%84-%D8%B3%DB%8C%D8%B3%D8%AA%D9%85-%D8%A8%D8%A7%D9%86%DA%A9%DB%8C-%D8%A7%DB%8C%D8%B1%D8%A7%D9%86-%D9%88-%D8%B1%D9%88%D8%B3%DB%8C%D9%87-%D8%AF%D8%B1-%D8%A8%D8%AD%D8%A8%D9%88%D8%AD%D9%87-%D8%AA%D8%AD%D8%B1%DB%8C%D9%85%E2%80%8C%D9%87%D8%A7%DB%8C-%D8%BA%D8%B1%D8%A8 |title=اتصال سیستم بانکی ایران و روسیه در بحبوحه تحریم‌های غرب: معاون بین‌الملل بانک مرکزی گفت که بانک‌های ایرانی دیگر نیازی به استفاده از "سوئیفت" ندارند |trans-title=Iran and Russia connect banking system amid Western sanctions: Iranian banks no longer need to use 'SWIFT' |language=fa |work=independentpersian.com |date= |access-date=24 October 2023}}

{{See also|INSTEX|Petrocurrency}}

According to the Ministry of ICT in 2018, Post Bank of Iran will issue Iran's first digital currency over the blockchain technology (with the advantage, in relation to the sanctions against Iran that blockchain transactions do not need any clearing bank).{{Cite web |last=Jafari |first=Hamed |date=25 February 2018 |title=Post Bank of Iran Plans to Launch the Country's First Digital Currency |url=http://techrasa.com/2018/02/25/post-bank-iran-plans-launch-countrys-first-digital-currency/ |url-status=live |archive-url=https://web.archive.org/web/20180612092522/http://techrasa.com/2018/02/25/post-bank-iran-plans-launch-countrys-first-digital-currency/ |archive-date=12 June 2018 |access-date=6 July 2018 |website=techrasa.com}}

Furthermore, given Iran's large reserves of oil and gas, the Iranian rial could become a reserve currency if parity is established with oil and gas,{{Cite web |title=Sanctions Buster? Iran Eyes Cryptocurrency To Blunt U.S. Deterrents |url=http://www.payvand.com/news/18/aug/1038.html |url-status=live |archive-url=https://web.archive.org/web/20180808184608/http://www.payvand.com/news/18/aug/1038.html |archive-date=2018-08-08 |access-date=2018-08-29 |website=www.payvand.com}} as was between USD and gold in the past (e.g. parity of 1,000,000 tomans for a barrel of oil), such as with Venezuela's newly minted "Petro" crypto-currency.{{Cite web |last=Todd White |date=July 26, 2018 |title=Central Bank of Iran Working on Cryptocurrency, Press TV Reports |url=https://www.bloomberg.com/amp/news/articles/2018-07-26/central-bank-of-iran-working-on-cryptocurrency-press-tv-reports |url-status=live |archive-url=https://web.archive.org/web/20180727033725/https://www.bloomberg.com/amp/news/articles/2018-07-26/central-bank-of-iran-working-on-cryptocurrency-press-tv-reports |archive-date=July 27, 2018 |access-date=July 27, 2018 |website=www.bloomberg.com}}

{{See also|Communications in Iran#Technology start-ups}}

Finnotech.ir is Iran's premier banking API provider and Informatics Services Corporation (ISC) is a leading operator of information systems for the banking industry (including Shetab).{{Cite web |date=6 January 2017 |title=Iran's 1st Open Banking API Launched |url=https://financialtribune.com/articles/economy-business-and-markets/56996/iran-s-1st-open-banking-api-launched |url-status=live |archive-url=https://web.archive.org/web/20170108142443/https://financialtribune.com/articles/economy-business-and-markets/56996/iran-s-1st-open-banking-api-launched |archive-date=8 January 2017 |access-date=7 January 2017 |website=Financial Tribune}} As of 2016, Iran had 50 companies active in fintech.{{Cite web |date=2 January 2017 |title=Banking Reform Blueprint Unveiled |url=https://financialtribune.com/articles/economy-business-and-markets/56766/banking-reform-blueprint-unveiled |url-status=live |archive-url=https://web.archive.org/web/20170104143817/https://financialtribune.com/articles/economy-business-and-markets/56766/banking-reform-blueprint-unveiled |archive-date=4 January 2017 |access-date=6 July 2018 |website=Financial Tribune}} The CBI limits fintechs' role in Iran's financial sector by allowing them to operate as long as they are not involved in money creation, currency exchange, offering payment tools (like cards) and attracting deposits.{{Cite web |date=19 December 2016 |title=Centeral{{sic|nolink=y}} Bank of Iran to Establish Fintech Regulatory Body |url=https://financialtribune.com/articles/economy-business-and-markets/55772/centeral-bank-of-iran-to-establish-fintech-regulatory |url-status=live |archive-url=https://web.archive.org/web/20161221090838/https://financialtribune.com/articles/economy-business-and-markets/55772/centeral-bank-of-iran-to-establish-fintech-regulatory |archive-date=21 December 2016 |access-date=20 December 2016 |website=Financial Tribune}}

{{See also|Iranian Rial#Cash cheques|Audit trail|l1=Cheques in Iran}}

As of January 21, 2010, account holders will no longer be allowed to withdraw more than $15,000 from Iranian banks but they can still write checks for larger amounts.{{citation needed|date=August 2021}}

In 2009, 10.7% of cheques bounced.{{Cite web |title=Iranians Lose Faith in Cheques: More and more cheques bounce as economy struggles |url=http://www.payvand.com/news/10/jun/1033.html |url-status=live |archive-url=https://web.archive.org/web/20120614051959/http://www.payvand.com/news/10/jun/1033.html |archive-date=2012-06-14 |access-date=2012-01-08 |publisher=Payvand.com}}

{{See also|Shetab Banking System}}

In 2007, Tetra-Tech IT Company announced that Visa and MasterCard could be used for online sales and in Iranian e-card terminals at shopping malls, hotels, restaurants, and travel agencies for Iranians and foreign tourists.{{Cite web |title=VISA and MasterCard usage possible in Iran |url=http://payvand.com/news/07/feb/1159.html |url-status=live |archive-url=https://web.archive.org/web/20180314031627/http://payvand.com/news/07/feb/1159.html |archive-date=2018-03-14 |access-date=2012-01-08 |publisher=Payvand.com}} Iran's electronic commerce will reach 10 trillion rials ($1 billion) by March 2009.[http://www2.irna.ir/en/news/view/menu-234/0812030911192309.htm IRNA: Iran's e-commerce to reach rls10,000b] {{webarchive |url=https://web.archive.org/web/20090815143518/http://www2.irna.ir/en/news/view/menu-234/0812030911192309.htm |date=August 15, 2009 }} Retrieved December 3, 2008 Some wealthier people have debit cards, but MasterCard or Visa are no longer available in Iran, and few foreign banks are active there because of international sanctions.{{Cite news |last1=Fitch |first1=Asa |last2=Parasie |first2=Nicolas |date=2015-04-06 |title=Western Companies See Potential in Reaching Iran's Consumers After Nuclear Deal |work=The Wall Street Journal |url=https://www.wsj.com/articles/western-companies-see-potential-in-reaching-irans-consumers-after-nuclear-deal-1428313107?cb=logged0.5079263212005186 |url-status=live |access-date=2017-03-06 |archive-url=https://web.archive.org/web/20160114181345/http://www.wsj.com/articles/western-companies-see-potential-in-reaching-irans-consumers-after-nuclear-deal-1428313107?cb=logged0.5079263212005186 |archive-date=2016-01-14}} Around 94% of Iranians had a debit card, compared with less than 20% in Egypt (2015).{{Cite web |last=Moshinsky |first=Ben |title=This ex-Deutsche Bank tech expert quit his job to risk everything on Iran's coming economic boom |url=https://www.businessinsider.com/xanyar-kamangar-and-griffon-capital-setting-up-in-iran-before-sanctions-lift-2015-10 |url-status=live |archive-url=https://web.archive.org/web/20190502003305/https://www.businessinsider.com/xanyar-kamangar-and-griffon-capital-setting-up-in-iran-before-sanctions-lift-2015-10 |archive-date=2019-05-02 |access-date=2019-01-25 |website=Business Insider}}

In 2016, Iran introduced its own domestic credit card system based on Sukuk principles and reported talks with MasterCard (and other international payment operators) for a re-entry.{{Cite web |date=18 November 2016 |title=CBI Talking to Int'l Payments Technology Companies |url=https://financialtribune.com/articles/economy-business-and-markets/53865/cbi-talking-to-int-l-payments-technology-companies |url-status=live |archive-url=https://web.archive.org/web/20161119183655/https://financialtribune.com/articles/economy-business-and-markets/53865/cbi-talking-to-int-l-payments-technology-companies |archive-date=19 November 2016 |access-date=19 November 2016 |website=Financial Tribune}}

{{main|Hawala}}

Many Iranian businesses and individuals also rely on hawala, an informal trust-based money transfer system that exists in the Middle East and other Muslim countries. Since the imposition of recent U.S. and UN financial sanctions on Iran, the use of hawala by Iranians has reportedly increased.

{{See also|Crime in Iran}}

The Central Bank of Iran is enforcing the Anti-Money Laundering law[http://www.cbi.ir/page/5320.aspx newly-passed Anti-Money Laundering law] to curb possible crime. The minister of intelligence, the governor of the Central Bank of Iran (CBI) and several other ministers are among the members of the special committee in charge of the campaign against money laundering. In 2008, the Paris-based Financial Action Task Force (FATF) Watchdog praised the Islamic Republic's crackdown on money laundering. The 34-member financial watchdog congratulated Tehran on its commitment to seal money laundering loopholes.{{citation needed|date=August 2021}} However, in 2010, FATF, named Ecuador and Iran on a list of states that it says are failing to comply with international regulations against money laundering and financing terrorism.{{citation needed|date=August 2021}} Despite president Hassan Rouhani showing interest in FATF, there has been a massive disagreements by hardliners related to supreme leader, Ali Khamenei. Among them Ahmad Jannati, the chairman of the Assembly of Experts and the secretary of the Guardian Council and Ali Akbar Velayati, Iran's former foreign secretary and Supreme leader top foreign relationship advisor are two notable people who are against the FATF.{{Cite web |last=Sadeghi |first=Saheb |date=28 September 2016 |title=Financial watchdog worries Iranian hard-liners |url=http://www.al-monitor.com/pulse/originals/2016/09/iran-financial-action-task-force-fatf-debate-wto.html |url-status=live |archive-url=https://web.archive.org/web/20170518150830/http://www.al-monitor.com/pulse/originals/2016/09/iran-financial-action-task-force-fatf-debate-wto.html |archive-date=18 May 2017 |access-date=26 May 2017 |website=Al-Monitor}} These disagreements and lack of FATF being approved by the Iranian parliament has brought FATF enforcement to halt.

It has been estimated by the government of Iran in 2015 that dirty money from drug trafficking in Iran amounts to 10 trillion tomans a year (1 toman equals 10 rials), some of which has been finding its way into "elections and the securing of votes" to influence the country's politics.{{Cite web |title=Iran's Interior Minister warns of illegal drug profits financing election campaigns |url=http://www.payvand.com/news/15/feb/1110.html |url-status=live |archive-url=https://web.archive.org/web/20150224041058/http://www.payvand.com/news/15/feb/1110.html |archive-date=2015-02-24 |access-date=2015-02-24 |website=www.payvand.com}}

• Reserves of foreign exchange and gold: $125.9 billion (2015),{{citation needed|date=August 2021}} $111.6 billion (2014),{{citation needed|date=August 2021}} $68.06 billion (2013), $74.06 billion (2012), $110 billion (2011),[https://web.archive.org/web/20120419001302/http://english.farsnews.com/newstext.php?nn=8101300065 Minister: Iran Facing No Problem in Currency Reserves, Revenues]. Fars News Agency, April 18, 2012. Retrieved May 2, 2012. $80 billion (2010), $40 billion (2005){{Cite web |title=Middle East :: Iran — The World Factbook - Central Intelligence Agency |url=https://www.cia.gov/the-world-factbook/countries/iran/ |access-date=2009-04-06 |website=www.cia.gov}} (note: most of Iran's forex reserves are frozen abroad (2014)) {{Cite web |title=Iran Daily – Domestic Economy – 12/04/08 |url=http://www.iran-daily.com/1387/3287/html/economy.htm |url-status=bot: unknown |archive-url=https://web.archive.org/web/20081207083232/http://www.iran-daily.com/1387/3287/html/economy.htm |archive-date=December 7, 2008 |access-date=2016-02-19}}
• Composition: In 2007, 10% of the reserves were held in gold, 20% in US dollars (down from 40% in 2006), the rest mostly in Euro and other major currencies (i.e., Japanese yen, British pound and the Swiss franc). In 2009, Iran's President Mahmoud Ahmadinejad ordered the replacement of the US dollar by the euro in the country's foreign exchange accounts.{{citation needed|date=August 2021}}

{{See also|Mining in Iran#Gold|Iranian Crown Jewels|l1=Iran's below ground gold reserves}}

In October 2010, Iran's gold reserves hit "record high" as the Central Bank took "preventive measures" to avoid a possible asset freeze by Western countries.{{Cite web |date=2010-10-22 |title=Iran's forex reserve at $100b: central bank |url=http://www.tehrantimes.com/index_View.asp?code=229056 |url-status=live |archive-url=https://web.archive.org/web/20110614011630/http://www.tehrantimes.com/index_View.asp?code=229056 |archive-date=2011-06-14 |access-date=2012-01-09 |publisher=tehran times}} Iran has changed 15% of its foreign exchange reserves into gold (see also: U.S. sanctions against Iran.){{Citation needed|date=August 2021}}

In January 2012, the head of Tehran's Chamber of Commerce reported that Iran had 907 tons of gold, purchased at an average of $600 per ounce and worth $54 billion at the current price.{{Cite web |title=Iran reserves: $120b in foreign notes, 907 tons of gold |url=http://tehrantimes.com/economy-and-business/95019-iran-reserves-120b-in-foreign-notes-907-tons-of-gold |url-status=dead |archive-url=https://web.archive.org/web/20120202234954/http://tehrantimes.com/economy-and-business/95019-iran-reserves-120b-in-foreign-notes-907-tons-of-gold |archive-date=2012-02-02 |access-date=2012-02-05}}{{Cite web |title=Iran's economy to grow despite sanctions: Ahmadinejad |url=http://www.dailystar.com.lb/Business/Middle-East/2012/Feb-01/161822-irans-economy-to-grow-despite-sanctions-ahmadinejad.ashx#axzz1l8PGbt4S |url-status=live |archive-url=https://web.archive.org/web/20120205015512/http://www.dailystar.com.lb/Business/Middle-East/2012/Feb-01/161822-irans-economy-to-grow-despite-sanctions-ahmadinejad.ashx#axzz1l8PGbt4S |archive-date=2012-02-05 |access-date=2012-02-05 |website=www.dailystar.com.lb}} The CBI governor however reports only 500 tons (i.e. above ground gold reserves).{{Cite web |title=Iran gold reserves 500 tones, CBI governor|url=http://www.iranwpd.com/index.php?option=com_k2&view=item&id=3086:iran-gold-reserves-500-tones-cbi-governor&Itemid=66 |url-status=usurped |archive-url=https://web.archive.org/web/20120215204207/http://iranwpd.com/index.php?option=com_k2&view=item&id=3086%3Airan-gold-reserves-500-tones-cbi-governor&Itemid=66 |archive-date=Feb 15, 2012 |access-date=Oct 20, 2022 |website=www.iranwpd.com}} The discrepancy is unexplained but the 907 tons could (mistakenly) include below-ground gold reserves (320 metric tons as of 2012) and possibly the gold in Iranian private hands (~100 tons in coins or bullion).{{Cite web |title=Private homes in Iran hold more gold than Central Bank |url=http://www.payvand.com/news/14/sep/1067.html |url-status=live |archive-url=https://web.archive.org/web/20140917002318/http://www.payvand.com/news/14/sep/1067.html |archive-date=2014-09-17 |access-date=2014-09-15 |website=www.payvand.com}} In 2014, reports from the Central Bank put its gold stores at 90 tons only, the rest possibly used in barter trade following sanctions.{{Cite news |last=Wiggin |first=Addison |title=How Gold Helped Iran Withstand U.S. Financial Fury |work=Forbes |agency=Great Speculations |url=https://www.forbes.com/sites/greatspeculations/2014/05/23/how-gold-helped-iran-withstand-u-s-financial-fury/ |url-status=live |access-date=2017-08-25 |archive-url=https://web.archive.org/web/20170102001125/http://www.forbes.com/sites/greatspeculations/2014/05/23/how-gold-helped-iran-withstand-u-s-financial-fury/ |archive-date=2017-01-02}}

{{See also|Banking and insurance in Iran#Islamic banking|Politics of Iran#Public finance and fiscal policy|Iranian rial|Seigniorage|l1=Islamic banking and insurance in Iran|l2=Public finance and fiscal policy in Iran}}

File:Bank Markazi Ferwosi.jpg

Double digit inflation rates have been a fact of life in Iran for the past 20 years. Between 2002 and 2006, the rate of inflation in Iran has been fluctuating between 12 and 16%.{{Cite web |title=Iran Inflation Rate |url=http://www.indexmundi.com/iran/inflation_rate_(consumer_prices).html |url-status=live |archive-url=https://web.archive.org/web/20101011082500/http://www.indexmundi.com/iran/inflation_rate_(consumer_prices).html |archive-date=2010-10-11 |access-date=2007-10-29 |publisher=index Mondi}}

Monetary policy in Iran has not been successful in meeting the inflation and monetary targets set in the Iranian Five-Year Development Plans, owing mainly to the monetary impact of government spending out of oil revenue. Although the attainment of the inflation targets has improved somewhat recently, the objective of a gradual disinflation to single-digit levels has not been achieved. Moreover, the implicit intermediate target of monetary policy, money growth, has

been systematically missed.{{Cite web |title=Money and Inflation in the Islamic Republic of Iran |url=http://www.imf.org/external/pubs/ft/wp/2007/wp07119.pdf |url-status=live |archive-url=https://web.archive.org/web/20080229131915/http://www.imf.org/external/pubs/ft/wp/2007/wp07119.pdf |archive-date=2008-02-29 |access-date=2007-10-29 |publisher=IMF}}

The Central Bank is an extension of the Iranian government and as such it does not operate independently. Interest rate is usually set based on political priorities and not monetary targets. There is little alignment between fiscal and monetary policy.

The Central Bank assesses the inflation rate with the use of the prices of 395 goods and services in Iran's urban areas.{{Cite web |title=Archived copy |url=http://www.cbi.ir/page/6649.aspx |url-status=live |archive-url=https://web.archive.org/web/20110717053917/http://www.cbi.ir/page/6649.aspx |archive-date=2011-07-17 |access-date=2010-07-06}}

High levels of inflation have also been associated with a growth in Iran's money supply. The Central Bank's data suggest that the money supply growth has been about 40% annually. The rapid growth of money supply came from high demands for borrowing capital at the rate of 12% the banks offer, imposed by the Government to make credit accessible to average Iranians and small entrepreneurs. However, this rate is lower than the rate of inflation. This makes the cost of borrowing less than free market cost as determined by supply and demand, based on the inflation rate and investment risk.{{Cite web |last=Amir Naghshineh-Pour |title=A Review and Analysis of Iran's Current Economic Status |url=http://www.payvand.com/news/08/oct/1285.html |url-status=live |archive-url=https://web.archive.org/web/20081103143949/http://www.payvand.com/news/08/oct/1285.html |archive-date=2008-11-03 |access-date=2008-10-30 |website=www.payvand.com}}

• Banking profit rates – As of 2010, the interest rate charged between banks (i.e. interbank rate) is set by the government of Iran.{{Cite web |title=Iranian Banks Under Sanctions: Government Looking Towards Foreign Banks |url=http://www.payvand.com/news/10/jul/1063.html |url-status=live |archive-url=https://web.archive.org/web/20111229045118/http://www.payvand.com/news/10/jul/1063.html |archive-date=2011-12-29 |access-date=2012-02-08 |publisher=Payvand.com}}
• Credit ceiling – the CBI can intervene in and supervise monetary and banking affairs through limiting banks, specifying the mechanisms for use of funds and determining the ceiling of loans and credits in each sector.

• Reserve requirement ratio – According to Article 14 of the Monetary and Banking Law of Iran,{{Cite web|url=http://www.cbi.ir/page/5298.aspx|archive-url=https://web.archive.org/web/20101030010831/http://www.cbi.ir/page/5298.aspx|url-status=dead|archive-date=2010-10-30|title=Central Bank of Iran|accessdate=25 February 2024}} the CBI is authorized to determine reserve requirement ratio within 10 to 30 percent depending on banks’ liabilities’ composition and field of activity.
• CBI Participation Papers – The Central Bank must obtain approval from the Majlis in order to issue participation papers.{{Cite web |title=Iran's Economy |url=https://fpc.state.gov/documents/organization/107234.pdf |url-status=live |archive-url=https://web.archive.org/web/20170627081501/https://fpc.state.gov/documents/organization/107234.pdf |archive-date=2017-06-27 |access-date=2012-01-08}}
• Open deposit account (ODA): control liquidity through absorption of banks’ excess resources. The CBI pays "profit" to these deposits with the CBI on the basis of specific rules.{{Cite web |title=Archived copy |url=http://www.cbi.ir/page/1465.aspx |url-status=live |archive-url=https://web.archive.org/web/20101112192727/http://www.cbi.ir/page/1465.aspx |archive-date=2010-11-12 |access-date=2010-08-19}}

{{See also|Iranian rial|Taxation in Iran|Fractional-reserve banking}}

The International Monetary Fund (IMF) reports that in 2001, currency and demand deposits—an aggregate commonly known as M1—were equal to $71.7 billion. In that same year, M2—an aggregate equal to M1 plus savings deposits, small time deposits, and money market mutual funds—was $153.6 billion. According to the CBI, the country's liquidity amounted to some $174 billion by April 2008,{{Cite web |title=Iran's inflation rate 21%, liquidity $174b, Central Bank says |url=http://www.payvand.com/news/08/jul/1036.html |url-status=live |archive-url=https://web.archive.org/web/20120225005930/http://www.payvand.com/news/08/jul/1036.html |archive-date=2012-02-25 |access-date=2012-01-09 |publisher=Payvand.com}} $197 billion by October 2009.{{citation needed|date=August 2021}} and over $300 billion in 2011.{{YouTube|id=SSUYVdo_HBk&list=UU5gtqdJOvhGdh-6WRO2CTpw&index=9}}{{dead link|date=January 2019}}

Money in circulation reached $700 billion in March 2020 (based on the 2017 pre-devalation exchange rate).{{Cite web |title=Iran's Money Supply Skyrockets Parallel to Inflation |date=15 June 2020 |url=https://en.radiofarda.com/a/iran-s-money-supply-skyrockets-parallel-to-inflation/30671910.html}} (Iran's monetary base reached 3,721.46 trillion rials (nearly $12 billion) in September 2020 while M2 reached $95 billion (i.e. 26% and 36.2% increase in one year respectively), while the money multiplier effect (which shows how much the monetary base could create new money in the economy) had reached an all-time high), thus explaining the rise in inflation (40%) and of the fall of the Iranian rial in recent years. The Iranian rial has fallen almost five-fold since the beginning of 2018. In turn, Iran's forex reserves have fallen, as Iran is trying to maintain the value of its currency by injecting forex into the market to meet the demand for US dollars by the general public and companies and pay for imports.

In turn, the cause of this is due to inefficient taxation in Iran and tax collection (and tax evasion in particular). Inflation (or loss of purchasing power) being a uniform hidden taxation on the population (unless compensated by an increase in salaries and productivity) which adversely affects the lower strata of the Iranian population the most.{{Cite web |title=Government Debt, Deficit, Money Supply Soar, Iran Central Bank Reveals |date=14 February 2020 |url=https://en.radiofarda.com/a/government-debt-deficit-money-supply-soar-iran-central-bank-reveals/30434199.html}}

{{Update section|date=December 2018}}

:::::::::::::::Note: 1/ Includes some liabilities in foreign currency to residents.

{{See also|Politics of Iran#Public debt}}

As of December 2019, the government debt to banks reached 3,880,000 billion rials (approx. $30 billion, which is a 3.5% rise since 2013 when President Rouhani took office). This means that the government prints money, which is made available to banks the state controls in Iran and then it borrows from these banks at interest. The private sector's debt to banks in the twelve-month period ending on December 20, 2019, reached 14,400,000 billion rials or more than $110 billion.

{{See also|Foreign relations of Iran|List of banks in Iran#Foreign banks|l2=Foreign banks in Iran}}

Iran is member of the Islamic Development Bank. As of August 2006, the World Bank has financed 48 development projects in the country for a total original commitment of US$3,413 million.{{Cite web |title=World bank report on Iran |url=http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/IRANEXTN/0,,menuPK:312964~pagePK:141132~piPK:141121~theSitePK:312943,00.html |url-status=live |archive-url=https://web.archive.org/web/20110612025005/http://web.worldbank.org/WBSITE/EXTERNAL/COUNTRIES/MENAEXT/IRANEXTN/0,,menuPK:312964~pagePK:141132~piPK:141121~theSitePK:312943,00.html |archive-date=2011-06-12 |access-date=2012-01-09 |publisher=Web.worldbank.org}} World Bank loans to Iran come only from the International Bank for Reconstruction and Development (IBRD). Iran is a member of the World Bank's Multilateral Investment Guarantee Agency.{{Cite web |date=2005-10-03 |title=Iran's Third Development Plan: an Appraisal – Science News |url=http://www.redorbit.com/news/science/258875/irans_third_development_plan_an_appraisal/index.html |url-status=live |archive-url=https://web.archive.org/web/20111129212318/http://www.redorbit.com/news/science/258875/irans_third_development_plan_an_appraisal/index.html |archive-date=2011-11-29 |access-date=2012-01-09 |publisher=redOrbit}} Iran joined the International Monetary Fund (IMF) on December 29, 1945.{{Cite web |title=Iran's Financial Position at IMF |url=http://www.imf.org/external/np/fin/tad/exfin2.aspx?memberKey1=450&date1key=2007-10-10 |publisher=IMF}} CBI governors attend IMF's board discussions on Iran on behalf of the government. These meetings are usually held once a year in Washington, D.C.{{Cite web |title=Iran and IMF|International Monetary Fund |url=http://www.imf.org/external/country/IRN/index.htm |url-status=live |archive-url=https://web.archive.org/web/20071010032754/http://www.imf.org/external/country/IRN/index.htm |archive-date=2007-10-10 |access-date=2007-10-10}}

{{See also|Foreign Direct Investment in Iran#Outward FDI|Iranian frozen assets|l1=Outward FDI in Iran}}

• Iran's foreign debt: $22.07 billion in 2010 ($10.6 billion of short-term debts and $11.4 billion of mid-term and long-term debts).{{Cite web |date=2011-04-27 |title=Iran's foreign debt reach $22m |url=http://tehrantimes.com/Index_view.asp?code=239596 |url-status=live |archive-url=https://web.archive.org/web/20110725222958/http://tehrantimes.com/Index_view.asp?code=239596 |archive-date=2011-07-25 |access-date=2012-01-09 |publisher=tehran times}}
• Iran's deposits in foreign banks: stand at $35 billion while its obligations amount to $25 billion (2007).{{citation needed|date=August 2021}} In 2007, Iran had $62 billion worth of assets held abroad.{{Cite web |title=Iran's foreign assets surpass $62b |url=http://www.mehrnews.ir/en/NewsDetail.aspx?NewsID=510378 |url-status=dead |archive-url=https://web.archive.org/web/20071212043225/http://www.mehrnews.ir/en/NewsDetail.aspx?NewsID=510378 |archive-date=2007-12-12 |access-date=2012-01-09 |publisher=Mehrnews.ir}} According to the Bank for International Settlements, Iran's deposits with 39 world banks reached $15.44 billion at the end of March 2012 while its obligations stood at $10.088 billion.{{Cite web |title=Fars News Agency :: Iran's Assets at Foreign Banks Exceed $15bln |url=http://english.farsnews.ir/newstext.php?nn=9106243188 |url-status=dead |archive-url=https://web.archive.org/web/20121114172323/http://english.farsnews.com/newstext.php?nn=9106243188 |archive-date=2012-11-14 |access-date=2012-09-30}} In addition it was reported that Iran had between 10 and 20 billion dollars held in foreign banks in 2011, allegedly because of payment problems by foreign companies to Iran.{{Cite news |title=Seoul, Ankara seeking U.S. waiver on Iran oil |work=Tehran Times |url=http://www.tehrantimes.com/economy-and-business/94249-seoul-ankara-seeking-us-waiver-on-iran-oil- |url-status=dead |access-date=2012-01-09 |archive-url=https://web.archive.org/web/20130614111802/http://www.tehrantimes.com/economy-and-business/94249-seoul-ankara-seeking-us-waiver-on-iran-oil- |archive-date=2013-06-14}}{{Cite web |date=2011-12-15 |title=Fars News Agency :: India Studying Oil Payments to Iran via Russia |url=http://english.farsnews.ir/newstext.php?nn=9007277480 |url-status=dead |archive-url=https://web.archive.org/web/20130303142335/http://english.farsnews.com/newstext.php?nn=9007277480 |archive-date=2013-03-03 |access-date=2012-01-09 |publisher=English.farsnews.ir}} According to E.U. sources, despite the European sanctions, Iran has still "several billion euros" deposited in accounts in Germany, Italy, Malta, Spain, Greece and Switzerland (2012).{{Cite web |title=Despite sanctions, Iran has billions stashed away in European banks: EU advisor |url=http://english.alarabiya.net/articles/2012/01/29/191311.html |url-status=dead |archive-url=https://web.archive.org/web/20120207062352/http://english.alarabiya.net/articles/2012/01/29/191311.html |archive-date=2012-02-07 |access-date=2012-02-05}} As at 2013, only $30 billion to $50 billion of its foreign exchange reserves (i.e. roughly 50% of total) is accessible because of the international sanctions.{{Cite news |last=Marjorie Olster |date=August 23, 2013 |title=Sanctions Biting but Iran Not Budging |work=AP |url=https://abcnews.go.com/Politics/wireStory/sanctions-biting-iran-budging-20044000 |url-status=live |access-date=August 24, 2013 |archive-url=https://web.archive.org/web/20130901072819/https://abcnews.go.com/Politics/wireStory/sanctions-biting-iran-budging-20044000 |archive-date=September 1, 2013}} Iranian media has questioned why assets and foreign reserves{{Cite news |date=Dec 12, 2009 |title=U.S. froze $2 billion held for Iran in Citibank: report |work=Reuters |url=https://www.reuters.com/article/us-usa-iran-citigroup-idUSTRE5BB0ID20091212 |access-date=Oct 20, 2022 |via=www.reuters.com}} weren't repatriated (or converted into gold) while new sanctions were being discussed abroad.
• Transactions: Foreign transactions with Iran amounted to $150 billion between 2000 and 2007 worth of major contracts and both private and government lines of credit.{{Cite web |date=2007-05-09 |title=Global Investment in Iran |url=http://www.aei.org/press/26147 |url-status=dead |archive-url=https://web.archive.org/web/20110610130424/http://www.aei.org/press/26147 |archive-date=2011-06-10 |access-date=2012-01-09 |publisher=AEI}} According to the Bank for International Settlements (BIS), the balance of Iran's foreign exchange interactions in foreign banks and financial institutes during Q3 2008 stood above $24.3 billion.{{Cite web |title=Iran Daily – Domestic Economy – 04/06/09 |url=http://www.iran-daily.com/1388/3366/html/economy.htm |url-status=dead |archive-url=https://web.archive.org/web/20090408063452/http://www.iran-daily.com/1388/3366/html/economy.htm |archive-date=April 8, 2009 |access-date=2009-04-08}}

{{Main|Sanctions against Iran}}

{{See also|Bank Markazi v. Peterson}}

The US Treasury Department has also stepped up its attempt to restrict financing of foreign investment and trade with Iran. In January 2006, Swiss banks UBS and Credit Suisse announced separately that they were halting operations in Iran. In September 2006 the Treasury Department banned all dealings by Bank Saderat Iran with the US financial system, and in January 2007 it also blacklisted Bank Sepah and its British subsidiary, Bank Sepah International. In October 2007 the US Treasury blacklisted Bank Melli and Bank Mellat.

Under pressure from the US, 12 Chinese banks have reduced ties with Iranian banks since early September 2007, but five of them resumed commercial ties in mid-January 2008. In mid-February 2008, the US Treasury alleged that Iran's Central Bank helped the blacklisted banks evade US sanctions, by conducting transactions for them.{{Cite book |title=Investment regulations |date=19 March 2008 |publisher=Economist Intelligence Unit |chapter=Iran}}

{{See also|Smuggling in Iran|Central Bank of Iran#Digital currency}}

The Central Bank possesses limited foreign cash reserves due to the international sanctions and problems in the transfer of funds in and out of country. In 2012, The U.S. unilaterally expanded sanctions, which cut off from the US financial system foreign firms that do business with the central bank.{{Cite news |date=2012-01-01 |title=Iran President Ahmadinejad condemns US banking sanctions |work=BBC News |url=https://www.bbc.co.uk/news/world-middle-east-16378524 |url-status=live |access-date=2018-06-20 |archive-url=https://web.archive.org/web/20190126001902/https://www.bbc.co.uk/news/world-middle-east-16378524 |archive-date=2019-01-26}} Iran is reportedly making increasing use of barter trade, cash smuggling, gold and local currencies of its trading partners to circumvent the international sanctions.[http://ca.finance.yahoo.com/news/canadian-wheat-board-wont-iran-112438608.html] {{dead link|date=September 2017|bot=InternetArchiveBot|fix-attempted=yes}}{{Cite web |title=What's Iran doing with Turkish gold? |url=http://blogs.ft.com/beyond-brics/2012/07/09/whats-iran-doing-with-all-that-turkish-gold/#axzz20CB8TklB |url-access=subscription |url-status=live |archive-url=https://web.archive.org/web/20120712010215/http://blogs.ft.com/beyond-brics/2012/07/09/whats-iran-doing-with-all-that-turkish-gold/#axzz20CB8TklB |archive-date=2012-07-12 |access-date=2012-07-11 |website=Financial Times}} The CBI has been blacklisted by the U.S. government due to the bank's involvement in the Iranian nuclear program and it has been blocked from using SWIFT since March 2012 as a consequence.{{Cite news |date=2012-03-15 |title=Iran's banks to be blocked from global banking system |work=BBC News |url=https://www.bbc.co.uk/news/business-17390456 |url-status=live |access-date=2018-06-20 |archive-url=https://web.archive.org/web/20180429213609/http://www.bbc.co.uk/news/business-17390456 |archive-date=2018-04-29}}

{{See also|Media of Iran}}

The Central Bank of Iran publishes a variety of periodicals for general and specialist audiences including Economic Trends, Bulletin, Annual Review, Economic Report and Balance Sheet. Other publications include booklets, monographs and brochures. Many of those documents are also available in English.{{Cite web |title=Publications |url=https://www.cbi.ir/section/1373.aspx |url-status=live |archive-url=https://web.archive.org/web/20190126061003/https://www.cbi.ir/section/1373.aspx |archive-date=2019-01-26 |access-date=2019-01-25 |website=www.cbi.ir}}

{{Portal|Iran|Banks|Business and economics}}

{{Div col|colwidth=22em}}

• Banking and Insurance in Iran
• Islamic Economics Organization of Iran
• Construction industry of Iran
• Economy of Iran
• History of banking
• Imperial Bank of Persia
• Iranian oil bourse
• Iranian rial (Iran's currency)
• Islamic banking and finance
• List of central banks
• Ministry of Petroleum of Iran
• Monetary and Banking Research Institute
• Shetab Banking System
• Supreme Audit Court of Iran
• Taxation in Iran
• Tehran Stock Exchange
• Bank Shahr
• Cryptocurrency in Iran{{Div col end}}

{{Reflist|30em}}

{{Refbegin}}

• {{Cite encyclopedia |title=Banking |encyclopedia=Encyclopædia Iranica |url=http://www.iranicaonline.org/articles/bank-e-markazi-e-iran-central-bank-of-iran-a-bank-established-under-the-iranian-banking-and-monetary-act-of-7-kordad |date=15 December 1988 |volume=III/7 |pages=698–709 |last2=Clawson |first2=P. |last3=Floor |first3=W. |last1=Basseer |first1=P.}}
• {{Cite book |last1=Clawson |first1=Patrick |title=Eternal Iran : continuity and chaos |last2=Rubin |first2=Michael |date=2005 |publisher=Palgrave Macmillan |isbn=978-1-4039-7710-6 |author-link=Patrick Clawson |author-link2=Michael Rubin (historian)}}
• {{Cite encyclopedia |title=Bānk-e Markazī-e ĪRāN |encyclopedia=Encyclopædia Iranica |url=http://www.iranicaonline.org/articles/bank-e-markazi-e-iran-central-bank-of-iran-a-bank-established-under-the-iranian-banking-and-monetary-act-of-7-kordad |last=Yeganeh |first=M. |date=15 December 1988 |volume=III/7 |pages=696–698}}

{{Refend}}

{{Commons category-inline}}

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{{S-other|Bank of issue of Iran}}

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{{S-ttl|title=Central Bank of Iran|years=1960–present}}

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{{Banks of Iran}}

{{Central Bank of Iran}}

{{Central banks by country}}

{{Authority control}}

Category:1960 establishments in Iran

Category:Banks established in 1960

Iran

Category:Economy of Iran

Category:Government of the Islamic Republic of Iran