TEHRAN (Iran News) Speaking at the Regional Economic Diplomacy Summit in Shiraz on Thursday, attended by the Foreign Minister and consuls from Gulf countries, Mohammad Reza Farzin emphasized the necessity of financial relations for international trade.

“If we want to trade with the world, we are obliged to have monetary and banking relations,” Farzin stated. “No trade can happen without them. For example, last year, Iran’s trade volume exceeded $200 billion. Comparing this to our GDP, over 40% of our economy is trade-related — a ratio even higher than that of Japan.”

He added that despite all the difficulties Iran faces in financial exchanges, it remains on the path of expanding its trade. “To develop our position as an open economy, given our historical and regional standing, we must expand monetary and banking relations,” he said.

Farzin underscored that Iran is focusing on trade with global partners, especially its main trading allies. “To this end, we have removed the US dollar from our transactions. For instance, banking relations between Iran and Russia have already been established.”

He continued, “We have implemented a model with Russia, and if we can replicate it with our other trade partners, we can introduce a new global trade framework. Even countries facing Western sanctions can benefit from this approach.”

Referring to foreign currency bond sales as a modern tool for advancing the country’s financial sector, Farzin noted, “We began selling foreign currency bonds at the exchange center last year. So far, $460 million has been sold, and we plan to increase this to $2 billion by the end of the year. We also aim to expand these sales to foreign stock exchanges.”

Farzin reiterated that achieving economic development hinges on international trade, which in turn requires financial interactions. “The mechanisms we designed during the sanctions have been highly effective,” he said. “Through our tailored systems, we have created new ways of engagement. However, we still need to intensify efforts, especially in attracting foreign investment.”

“To support this,” he continued, “we introduced a policy last year to convert our 50 overseas branches into centers for attracting foreign resources. These branches are staffed with experienced personnel who have strong knowledge of the countries they operate in.”

During the National Development Fund Conference, Farzin also highlighted a major issue in the country’s economic planning. “I raised the matter of credit allocation, which has now become a pressing concern. We have not directed credit properly, leading to unnecessary projects in certain regions. There are serious shortcomings in national land use planning and our industrial strategy.”

He emphasized the need to develop an industrial strategy based on Iran’s competitive advantages to properly allocate credit, funds, and resources. “The new Central Bank law views justice through the lens of equitable credit distribution — meaning banking resources and liquidity should be allocated in line with the advantages of each region across the country.”

The summit, which started on Thursday and runs through Friday, is part of a series of provincial economic diplomacy events led by the Ministry of Foreign Affairs. In addition to speeches by the Foreign Minister, provincial governors, and officials, the event features academic panels on the capacities and challenges of participating provinces.

According to the report, the Ministry of Foreign Affairs plans to host five such summits across the country to bolster regional economic diplomacy. Fars Province, given its significant potential and role as the liaison for Gulf countries, was selected as the host of the first summit.

The event is co-organized by the Fars Provincial Government in collaboration with the Chamber of Commerce, Shiraz City Council, and the Municipality of Shiraz.

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TEHRAN (Iran News) “The monetary agreement between Iran and Russia has been implemented, and the national currencies of the two countries, i.e. ruble and rial, have been used as the basis for the settlement based on the agreed rate on the commercial foreign exchange market,” Farzin who is accompanying President Masoud Pezeshkian during his visit to Russia said.

He also announced the connection of Russia’s Mir Card Network system to Iran’s SHETAB banking network.

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TEHRAN (Iran News) Mohammad Reza Farzin made these remarks during a coordination meeting with petrochemical holdings at the Iran Currency and Gold Exchange Center on December 30. He commended the petrochemical industry for fulfilling its commitments by returning foreign currency earnings to the economy. Farzin noted that daily transactions in the exchange center could soon reach approximately 20 trillion rials, highlighting its significant influence on the country’s financial industry.

Farzin emphasized the efficiency of the commercial forex system, enabling the Central Bank to ensure the country’s forex needs are met in a market-based manner. Suppliers can use this system to secure funding for development and operational needs. The system’s design eliminates rent-seeking opportunities for intermediaries and ensures a fair rate for both suppliers and demanders.

He added, “Our objective is to minimize unofficial market transactions and shift all legitimate commercial and service-related forex demands to this regulated market.”

Farzin stated that the commercial forex market could become the benchmark for foreign exchange rates in Iran. Referring to the $65 billion worth of transactions in the NIMA system last year, he suggested the new system would surpass these figures and serve as a reliable indicator for other markets.

“Rate signaling from the commercial forex market is crucial. Previously, NIMA rates influenced commodity markets but had little impact on asset markets. We aim to establish a more comprehensive signaling system,” Farzin remarked.

The Central Bank Governor stressed the importance of economic stability across various markets. “Uncertainty and instability harm economic actors. We must create conditions where rates are predictable, even amid political and security shocks,” he said, urging collaboration from the private sector to achieve this goal.

Farzin announced plans to introduce a currency bond market to address funding challenges caused by international sanctions. “Currently, 92% of the country’s financial burden is shouldered by the banking system. Diversifying financing methods is essential to sustain development,” he noted.

Mohammad Aram, Deputy Governor for Forex Affairs, praised the petrochemical sector’s cooperation in supplying currency via the commercial forex system. He expressed hope for increased currency offerings from this sector, particularly during the final days of the year.

Farzin also highlighted a structural transformation in the NIMA system, marking the first time the market operates purely on supply and demand principles. This approach reduces risks and corruption while enabling optimal rate discovery.

Ahmad Mahdavi, Secretary-General of the Petrochemical Industry Employers Association, reported significant growth in exports and forex sales by petrochemical companies. He highlighted that $7.144 billion had been sold through NIMA this year, a 7% increase compared to the same period last year.

Additionally, since the inception of the commercial forex market, petrochemical firms have sold $516 million, demonstrating their readiness to participate actively in the new system.

Mahdavi concluded by highlighting 49 planned projects under the seventh development plan, which are expected to generate $25 billion in exports annually and create an estimated $40 billion in value for the sector.

This initiative aims to establish a regulated market that can bridge rate gaps, eliminate speculative activities, and meet the real forex needs of the economy.

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