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Iran follows a policy of reducing its dependence on the
dollar and this will harm the United States more than it harms Iran since
it will debase the dollar. |
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Davoud
Danesh Jafari, Minister of Economic Affairs and Finance |
Access to global markets is a
prerequisite for the successful development of exports. Achieving that goal
requires an efficient banking system along with the establishment of
electronic banking. Speaking at an electronic banking conference, the Minister
of Economic Affairs and Finance, Davoud Danesh Jafari, was quoted by the
Kargozaran Daily as saying, "The modern world is rapidly developing due to the
expansion of the electronic government while power and wealth are defined as
having greater access to information."
Danesh Jafari pointed out that export
development is a major index of development, adding, "There is no better way
for expanding exports other than to increase efficiency of the banking system
which requires smooth and less costly banking operations." In order to achieve
that goal, "an electronic banking group has been established under the
supervision of the Ministry of Economic Affairs and in conjunction with banks
and the Ministry of information and Communication Technology."
The Minister of Economic Affairs and
Finance mentioned that the development of electronic banking will be to the
benefit of the government, banks, and people alike. "In view of the
government’s expenses, development of electronic banking will reduce the costs
of printing banknotes and the physical transport of money and will also reduce
fuel consumption and motor traffic and decrease environmental pollution; all
of which will reduce the government’s overall costs."
Danesh Jafari stated that according to
various estimates, there are 100 banknotes per head in Iran while the figure
is 16 in industrial countries and 40-50 in countries like India and Pakistan
and the per capita figure indicates the absence of an effective electronic
banking system in the country.
Electronic
Banking; Differences between State-run and Private Banks:
Danesh Jafari stated that in order
to develop electronic banking, attention should be paid to the promotion of
"banking culture" and the elucidation of existing laws. He said, at present,
there are 6,000 automated teller machines in Iran and noted that their number
will reach 8,100 by the end of the current Iranian calendar year and will
increase to 30,000 by the end of 1388.
The Minister
also discussed the SHETAB network on the sidelines of the conference, saying,
"Charging a commission in return for services provided by SHETAB network seems
to be necessary for development of electronic banking. Of course, when
competition intensifies, banks will reduce that commission."
No Barrier to
Activities of Finance and Credit Institutes:
The minister stated that
"according to the law, the Central Bank of Iran should fulfill its duties and
all those active in Iran’s money market should attune themselves to the
policies set out by the Central Bank. However, supervision of the Central Bank
of Iran does not rule out activities carried out by finance and credit
institutes. The Central Bank only supervises banks and enforces laws which
will effectively bolster domestic banking system."
Asked about a 2.1 percent reduction in
the country’s economic growth rate, he said, "The Central Bank has designed a
model on the basis of projected three-month growth. Projections have been made
according to evidence and various models and we have published statistics for
the first time on the basis of the output of those models. The accuracy of
those models will be made known in the coming months." He added that "the most
important general index for the first quarter of the current year is
oil-related issues and any change in the oil index can affect gross domestic
product."
Asked about US obstructionism for
dealings in dollar by Iranian banks, Danesh Jafari stated that the US policy
for restricting Iranian banks’ dollar dealings is only a form of "suicidal"
measure. "Iran follows a policy of reducing its dependence on the dollar and
this will harm the United States more than it harms Iran since it will debase
the dollar. This is not something we are saying exclusively, but even the
former Chairman of the U.S Federal Reserve bank has expressed concern about
the reduced value of the dollar in foreign exchange dealings."
Also, Dr. Soleimani, minister of
information and communication technology, addressed the conference saying that
even though 700 billion tomans have been invested in building 73,000 km of
fiberoptic network in the country, "we are still facing difficulties in the
area of accessibility."
He added, "The reason we expand the
telecommunication sector is because it is an economic and profitable sector."
Electronic banking is also a "market for the telecommunication sector and the
development of banking will lead to developments within telecommunications."
Soleimani stated that investment in information technology is very profitable
and capital returns for the sector has been estimated between one to four
years. "Although we are ahead of all regional countries in terms of
infrastructures, we lag behind in exploiting those infrastructures", he
concluded.
Meanwhile Pour-Mohammadi, Deputy
Minister of Economic Affairs and Finance told the conference that if Iran is
to achieve a suitable situation within the banking sector by 2009, the speed
of development trend should be greatly increased. He said a suitable culture
should be built with regard to modern banking, adding, "Teamwork should be
emphasized in that culture in order to promote electronic banking in the
country." |
