Economy, Business And Markets

CBI to Promote Currency Swap

CBI to Promote Currency Swap  CBI to Promote Currency Swap

Lawmakers Sunday passed legislation that allows the central bank to sign currency swap agreements with Iran’s major commercial partners.

The CBI has been tasked with promoting the usage of local currencies in coordination with ministries of foreign affairs, economy, energy, oil, and ministry of industries, mining and commerce, Alef news website reported.

Law also requires the bank to provide Majlis with reports of its progress on the issue every six months.

Iran has been trying to avoid dollar transactions since the imposition of economic sanctions a decade ago and gradually replace the US currency with the Chinese yuan, euro, Turkish lira, Russian ruble, and South Korean won. Legislators also allowed the CBI to continue printing and distributing ‘Iran Checks’, urging the regulator to adhere to the limits set by the Money and Credit Council.

Iran Checks are financial instruments which the CBI is permitted to issue with the purpose of easing monetary affairs and preserve public interest and assets.

Export Development Bank of Iran, Export Guarantee Fund of Iran and Iran Foreign Investment Company received exemption from paying tax on the profit they make when selling foreign currency. The Majlis also exempted banks and licensed foreign exchange operators from paying value added tax on their forex deals. Value-added tax in Iran is 9%.