 Seal of Central Bank of Iran | |
 Bank Markazi Tower, headquarters of the Central Bank of Iran since 2005 | |
| Headquarters | CBI Tower,Tehran |
|---|---|
| Coordinates | 35°45′29″N51°26′07″E / 35.758110°N 51.435209°E /35.758110; 51.435209 |
| Ownership | 100%state ownership[1] |
| Governor | Abdolnaser Hemmati |
| Central bank of | Iran |
| Currency | Iranian rial IRR (ISO 4217) |
| Reserves | $130 billion (2017)[2] |
| Reserve requirements | 10% to 13%[3] |
| Bank rate | 15%[4] |
| Interest paid on excess reserves? | Yes[5] |
| Website | www.cbi.ir |
| 1 According to article 10(e) of the Monetary and Banking Act of (1972), CBI's capital "is fully paid up and wholly owned by the Government". 2 Bank Melli Iran had supervisory functions and regulated the activities of all banks in Iran, while being the largest profit-making commercial bank in the country.[6] | |
TheCentral Bank of the Islamic Republic of Iran (CBI;Persian:بانک مرکزی جمهوری اسلامی ايران,romanized: Bank Markazi-ye Jomhuri-ye Eslāmi-ye Irān;SWIFT Code: BMJIIRTH), also known asBank Markazi, was established under the Iranian Banking and Monetary Act in 1960. It serves as the banker to the Iranian government and has the exclusive right to issue banknotes and coinage. CBI is tasked with maintaining the value of theIranian rial and supervision of banks and credit institutions. It acts as custodian of theNational Jewels, as well as the foreign exchange and gold reserves of Iran.[7] It is also a founding member of theAsian Clearing Union, controls gold and capital flows overseas, represents Iran in theInternational Monetary Fund (IMF) and internationally concludes payment agreements between Iran and other countries.[7]
TheGovernor of the Central Bank of Iran since a December 2025currency collapse is Abdolnasser Hemmati[8], who replaced Mohammad-Reza Farzin[9]
In November 2023 after 50 years the central bank was revamped fully and changed to includeIslamic Republic Development Bank.[10] The Central Bank wascyberattacked by IRLeaks in August 2024. The Iranian government was forced to pay ransom to the hackers in order to secure the data of Iranian customers.[11][12]
![[icon]](/mt/?noimg=&dark=on&url=https%3a%2f%2fen.wikipedia.org%2fwiki%2fFile%3aWiki_letter_w_cropped.svg) | This sectionneeds expansion with: with history of the success of the Central Bank in "maintaining the value of theIranian rial" over 1979–2024. You can help byadding missing information.(December 2025) |
In August 1960, the Iranian government established theCentral Bank of Iran (CBI) by reorganization of the central banking responsibilities previously exercised byBank Melli Iran.[7] Scope and responsibilities of the Central Bank had been defined in the Monetary and Banking Law of Iran (1960).[7]
Following theIranian 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.[7]
Mohammad-Reza Farzin was appointed Governor of the Central Bank on 29 December 2022, and was reappointed to the position in October 2024[9]
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. Thecyber 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.[11][12]
On June 25, 2025, Israeli defense ministerIsrael Katz signed an order declaring Central Bank of Iran, Shahr Bank, Mellat Bank andSepehr Energy Jahan, company owned byIranian Armed Forces, of being terrorist organizations due to their alleged roles in financing pro-Iranian militant groups and terrorism on behalf ofIRGC andQuds Force. Israel also declared three of the bank's senior officials as terrorist operatives.[13][14]
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.[15]
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)[16] are as follows:
To achieve the objectives as stated in the MBAI, CBI is endowed with the responsibility of fulfilling the following functions:[17]
The Money and Credit Council (MCC) is the highest banking policy-making body of Bank Markazi. Its permanent members include theCBI Governor, theFinance and Economy Minister, two Ministers chosen by theCabinet, The Head of theChamber of Commerce, theGeneral Prosecutor and two lawmakers (MPs).[18]
Each year, after approval of thegovernment'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 thefive-year economic development plan.[19] MCC meets every three months.[20]
In practice, the ability of the banking system to create money is not much constrained by the amount ofscriptural money throughfractional reserve banking. Indeed,most banks first extend credit andlook for reserves later.[citation needed] The Iranian Central Bank needs more independence from the government in order to combat inflation, according to the country'sParliament Research Center.[21] As of 2010, Iran's Central Bank, is not able to conduct a "proactive"monetary policy (e.g. it needs Majlis' approval before issuingparticipation bonds) and has no control overthe government's fiscal policy.[22]
The current combination of the Central Bank'sboard of directors are thePresident, Economy and Commerce Ministers, Deputy-President for strategic planning, and a Minister selected by the Cabinet.[23]
Seveneconomists 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 inthe decision-making process. The tenure of each member would be for 10 years and only for one term.[24][25] ThenPresident Mahmoud Ahmadinejad criticized this proposal and said that it is important for the Central Bank of Iran not to fall underprivate control "because it would not benefit theIranian people" over the long run.[citation needed]
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%.[26]
Monetary policy in Iran has not been successful in meeting theinflation 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, hasbeen systematically missed.[27]
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 betweenfiscal andmonetary policy.
The Central Bank assesses the inflation rate with the use of the prices of 395 goods and services in Iran's urban areas.[28]
High levels of inflation have also been associated with a growth in Iran'smoney supply. The Central Bank's data suggest that themoney 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 makecredit 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 bysupply and demand, based on the inflation rate andinvestment risk.[29]
TheInternational Monetary Fund (IMF) reports that in 2001,currency anddemand deposits—an aggregate commonly known as M1—were equal to $71.7 billion. In that same year, M2—an aggregate equal to M1 plussavings deposits, smalltime deposits, andmoney marketmutual funds—was $153.6 billion. According to the CBI, the country's liquidity amounted to some $174 billion by April 2008,[34] $197 billion by October 2009.[citation needed] and over $300 billion in 2011.[35]
Money in circulation reached $700 billion in March 2020 (based on the 2017pre-devalation exchange rate).[36] (Iran'smonetary base reached 3,721.46 trillionrials (nearly $12 billion) in September 2020 whileM2 reached $95 billion (i.e. 26% and 36.2% increase in one year respectively), whilethe 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 ininflation (40%) and of the fall of theIranian 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 injectingforex into the market to meet the demand forUS dollars by the general public and companies and pay for imports.[36]
In turn, the cause of this is due to inefficienttaxation in Iran and tax collection (andtax evasion in particular).Inflation (or loss ofpurchasing power) being a uniform hidden taxation on the population (unless compensated by an increase in salaries and productivity) which adversely affects thelower strata of the Iranian population the most.[37]
 | This section needs to beupdated. Please help update this article to reflect recent events or newly available information.(December 2018) |
| Source:International Monetary Fund[38] (In billions of rials; unless otherwise indicated) | Prel. 2008/09 | Proj. 2009/10 |
|---|---|---|
| Net foreign assets (NFA) | 703,329 | 789,498 |
| In millions of U.S. dollars | 72,381 | 77,050 |
| -Foreign assets | 773,352 | 863,336 |
| In millions of U.S. dollars | 79,587 | 84,257 |
| -Foreign liabilities1/ | 70,023 | 73,839 |
| In millions of U.S. dollars | 7,206 | 7,206 |
| Net domestic assets (NDA) | -139,843 | -225,654 |
| Net domestic credit | -5,141 | 21,083 |
| -Central government, net | -283,735 | -228,046 |
| Claims | 74,779 | 74,779 |
| Deposits | 358,514 | 302,824 |
| -Claims on banks | 239,758 | 206,409 |
| -Claims on non financial public enterprises (NFPEs) | 38,836 | 42,719 |
| -Other items net, excluding central bank participation papers (CPPs) | -134,701 | -246,737 |
| Base money | 556,925 | 556,925 |
| Currency | 206,352 | 200,745 |
| -Currency in circulation | 157,764 | 153,478 |
| -Cash in vaults | 48,588 | 47,268 |
| Reserves | 334,495 | 338,445 |
| -Required reserves | 225,228 | 307,757 |
| -Excess reserves | 109,267 | 30,688 |
| Deposits of NFPE and municipalities | 16,078 | 17,734 |
| Other liabilities | 6,561 | 6,919 |
| -CPPs | 0 | 0 |
| -Foreign currency deposits of NFPEs and municipalities | 6,561 | 6,919 |
| Memorandum items: End-period change (in percent of base money) | ||
| -Base money | 45.4 | 0.0 |
| -NFA | 13.4 | 15.5 |
| -NDA (net of other liabilities) | 32.0 | -15.5 |
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 whenPresident Rouhani took office). This means thatthe government prints money, which is made availableto banks the state controls in Iran and then it borrows from these banks atinterest. 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.[37]
In 2005, the government obliged the Central Bank of Iran and theIranian banks, mostly state owned, to set up all the necessary infrastructures (regulatory, hardware, software) for fully launchinge-money in Iran by March 2005. While this plan has not yet fully materialized, localdebit cards are now commonplace and have removed the main obstacle to the growth ofe-commerce (in the national scale) as well as the full roll out ofe-government initiatives.[39] 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 CBIparticipation 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 otherATM andPOS switch systems for the acceptance of international bank cards, designing of the electronic card payment system (SHAPARAK) for the centralization and reorganization ofPOSs.[40]
Followinginternational sanctions during the Russian invasion of Ukraine which blocked Russia from usingSWIFT, 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.[41][42]
According tothe Ministry of ICT in 2018,Post Bank of Iran will issue Iran's firstdigital currency over theblockchain technology (with the advantage, in relation to thesanctions against Iran that blockchain transactions do not need anyclearing bank).[43]
Furthermore, givenIran's large reserves of oil andgas, theIranian rial could become areserve currency ifparity is established withoil and gas,[44] as was betweenUSD andgold in the past (e.g. parity of 1,000,000tomans for abarrel of oil), such as withVenezuela's newlyminted "Petro"crypto-currency.[45]
Finnotech.ir is Iran's premierbanking API provider and Informatics Services Corporation (ISC) is a leading operator of information systems for the banking industry (includingShetab).[46] As of 2016, Iran had 50 companies active infintech.[47] The CBI limitsfintechs' 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.[48]
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]
In 2009, 10.7% ofcheques bounced.[49]
In 2007, Tetra-Tech IT Company announced thatVisa andMasterCard could be used for online sales and in Iranian e-card terminals at shopping malls, hotels, restaurants, and travel agencies forIranians and foreign tourists.[50]Iran's electronic commerce will reach 10 trillion rials ($1 billion) by March 2009.[51]Some wealthier people havedebit cards, but MasterCard or Visa are no longer available in Iran, and few foreign banks are active there because ofinternational sanctions.[52] Around 94% of Iranians had adebit card, compared with less than 20% in Egypt (2015).[53]
In 2016, Iran introduced its own domestic credit card system based onSukuk principles and reported talks withMasterCard (and other international payment operators) for a re-entry.[54]
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 recentU.S. and UN financial sanctions on Iran, the use of hawala by Iranians has reportedly increased.[32]
The Central Bank of Iran is enforcing the Anti-Money Laundering law[55] to curb possible crime. Theminister 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 againstmoney laundering. In 2008, the Paris-basedFinancial 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] 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] Despite presidentHassan Rouhani showing interest in FATF, there has been a massive disagreements by hardliners related to supreme leader,Ali Khamenei. Among themAhmad Jannati, the chairman of the Assembly of Experts and the secretary of the Guardian Council andAli Akbar Velayati, Iran's former foreign secretary and Supreme leader top foreign relationship advisor are two notable people who are against the FATF.[56] These disagreements and lack of FATF being approved by the Iranian parliament has brought FATF enforcement to halt.[56]
It has been estimated by thegovernment of Iran in 2015 that dirty money fromdrug 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 thecountry's politics.[57]
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.[61] Iran has changed 15% of its foreign exchange reserves into gold (see also:U.S. sanctions against Iran.)[citation needed]
In January 2012, the head ofTehran'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.[62][63] The CBI governor however reports only 500 tons (i.e. above ground gold reserves).[64] The discrepancy is unexplained but the 907 tons could (mistakenly) includebelow-ground gold reserves (320 metric tons as of 2012) and possibly the gold in Iranian private hands (~100 tons incoins orbullion).[65] In 2014, reports from the Central Bank put its gold stores at 90 tons only, the rest possibly used inbarter trade followingsanctions.[65][66]
After theIslamic Revolution, the Central Bank was mandated to establish anIslamic banking law. In 1983 the Islamic Banking law of Iran was passed byMajlis.[67] This law describes and authorizes an IranianShiite version of Islamic commercial laws (as differentiated from a less 'liberal'Sunni version).[68] According to this law,Iranian banks can only engage ininterest-free Islamic transactions (as interest is consideredusury or "riba" and is forbidden byIslamic law).
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.[69] 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.[70] All such transactions are performed through (12) Islamic contracts, such asMozarebe,Foroush Aghsati,Joalah,Salaf, andGharzolhasaneh. Details of these contracts and related practices are outlined in theIranian Interest-Free banking law and its guidelines. Examples are:
Sharia-compliant assets has reached about $400 billion throughout the world, according toStandard & Poor’s Ratings Services, and the potential market is $4 trillion.[71][72]Iran,Saudi Arabia andMalaysia are at the top with the biggest sharia-compliant assets.[73]
According to theIMF,Islamic banking forbids pure monetaryspeculation and stresses that deals should be based on realeconomic activity and therefore poses lessrisk than conventional banking to the stability of financial systems.[74]
Critics believe that the Iranian Interest-Free banking law has simply created the context for legitimizingusury orriba. 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 anycommercial risk. High valuecollateral items such asreal 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.[70]
Iran is member of theIslamic Development Bank. As of August 2006, theWorld Bank has financed 48 development projects in the country for a total original commitment of US$3,413 million.[75] World Bank loans to Iran come only from theInternational Bank for Reconstruction and Development (IBRD). Iran is a member of the World Bank'sMultilateral Investment Guarantee Agency.[76] Iran joined theInternational Monetary Fund (IMF) on December 29, 1945.[77] CBI governors attend IMF's board discussions on Iran on behalf of the government. These meetings are usually held once a year inWashington, D.C.[78]
TheUS Treasury Department has also stepped up its attempt to restrict financing of foreign investment and trade with Iran. In January 2006,Swiss banksUBS andCredit Suisse announced separately that they were halting operations in Iran. In September 2006 the Treasury Department banned all dealings byBank Saderat Iran with the US financial system, and in January 2007 it also blacklistedBank Sepah and its British subsidiary, Bank Sepah International. In October 2007 the US Treasury blacklistedBank Melli andBank 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 evadeUS sanctions, by conducting transactions for them.[89]
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.[90] Iran is reportedly making increasing use ofbarter trade,cash smuggling,gold and local currencies of its trading partners to circumvent the international sanctions.[91][92] The CBI has been blacklisted by theU.S. government due to the bank's involvement in theIranian nuclear program and it has been blocked from usingSWIFT since March 2012 as a consequence.[93]
ThePresident of Iran proposes a person as the governor of CBI, who must be verified by the general assembly and appointed by a presidential decree.[24]
The CBI was initially located in a modernist building onFerdowsi Street, by then the financial district of Tehran with the head offices ofBank Melli Iran,Bank Sepah,Bank Rahni Iran, andBank Bazargani. In 2005, it relocated to theBank Markazi Tower, a larger and more modern in North Tehran.[94] In the late 2010s, the CBI built a second tower in the same northern neighborhood, known as the Iran Central Bank Museum.[95] Meanwhile, the original building on Ferdowsi Street has been transferred toBank Melli Iran.[citation needed]
The Central Bank of Iran publishes a variety of periodicals for general and specialist audiences includingEconomic Trends,Bulletin,Annual Review,Economic Report andBalance Sheet. Other publications include booklets, monographs and brochures. Many of those documents are also available inEnglish.[96]
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| Bank of issue ofIran | ||
|---|---|---|
| Preceded by | Central Bank of Iran 1960–present | Incumbent |
