Description

The Central Bank of Iran (CBI), formerly known as Bank Markazi, traces its roots to the establishment of Bank Melli Iran in 1927, which initially served as both a commercial bank and the central bank of Iran. In 1930, Bank Melli Iran officially assumed the role of the central bank, overseeing government financial transactions and currency issuance.

However, in August 1960, the Iranian government restructured the banking system, leading to the creation of the Central Bank of Iran (CBI). This move effectively separated central banking functions from Bank Melli Iran, entrusting them to the newly established CBI. The CBI's mandate and duties were delineated in the Monetary and Banking Law of Iran (1960).

Following the Islamic Revolution in 1979, significant changes occurred within Iran's banking system. In 1983, the Central Bank of Iran was renamed the "Central Bank of the Islamic Republic of Iran," aligning with Islamic principles that prohibited the payment or receipt of interest. This transition marked a pivotal moment in the country's financial landscape, as banking operations adapted to adhere to Islamic banking principles.