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Central Bank of Iran

The Central Bank of Iran (CBI), also known as Bank Markazi, officially the Central Bank of the Islamic Republic of Iran (Persian: بانک مرکزی جمهوری اسلامی ايران, romanized: Bank Markazi-ye Jomhuri-ye Eslāmi-ye Irān; SWIFT Code: BMJIIRTH) is the central bank of Iran.

Ownership

100% state ownership[1]

Mohammad-Reza Farzin

Iran

Iranian rial
IRR (ISO 4217)

$130 billion (2017)[2]

10% to 13%[3]

15%[4]

Yes[5]

9 August 1960 (1960-08-09)

Islamic Republic of Iran

CBI Tower, Tehran
35°45′29″N 51°26′07″E / 35.758110°N 51.435209°E / 35.758110; 51.435209

None

www.cbi.ir

Established under the Iranian Banking and Monetary Act in 1960, it serves as the banker to the Iranian government and has the exclusive right of issuing banknote and coinage. CBI is tasked with maintaining the value of Iranian rial and supervision of banks and credit institutions. It acts as custodian of the National Jewels, as well as foreign exchange and gold reserves of Iran.[7] It is also a founding member of the Asian Clearing Union, controls gold and capital flows overseas, represents Iran in the International Monetary Fund (IMF) and internationally concludes payment agreements between Iran and other countries.[7]


In November 2023 after 50 years central bank was revamped fully and changed to include Islamic Republic Development Bank.[8]

Supreme Economic Council[edit]

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.[13]

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

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)[22] are as follows:


To achieve the objectives as stated in the MBAI, CBI is endowed with the responsibility of fulfilling the following functions:[23]

: $125.9 billion (2015), $111.6 billion (2014), $68.06 billion (2013),[52] $74.06 billion (2012),[52] $110 billion (2011),[53] $80 billion (2010),[53] $40 billion (2005)[52] (note: most of Iran's forex reserves are frozen abroad (2014)) [54]

Reserves of foreign exchange and gold

Composition: In 2007, 10% of the reserves were held in , 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.

gold

– As of 2010, the interest rate charged between banks (i.e. interbank rate) is set by the government of Iran.[65]

Banking profit rates

– 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.

Credit ceiling

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).

[77]

Iran's deposits in foreign banks: stand at $35 billion while its obligations amount to $25 billion (2007). In 2007, had $62 billion worth of assets held abroad.[78] 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.[79] In addition it was reported that Iran had between 10–20 billion dollars held in foreign banks in 2011, allegedly because of payment problems by foreign companies to Iran.[80][81] 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).[82] 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.[83] Iranian media has questioned why assets and foreign reserves[84] weren't repatriated (or converted into gold) while new sanctions were being discussed abroad.

Iran

Transactions: Foreign transactions with Iran amounted to $150 billion between 2000 and 2007 worth of major contracts and both private and government .[85] 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.[86]

lines of credit