Today's note:
Haft Koen's foreign trade; The fifth reader.
Can digital real be a new tool for the development of Iran's foreign trade?
Dr. Daoud Danshjafri; member of the academic staff of Alma Tabatbai University.
The central bank's digital currency can change the way money is transferred, transactions are recorded and debts are settled.
Central Bank Digital Real or CBDC is the digital form of central bank money. Its main difference with a bank deposit is that in the conventional design of the digital real or CBDC, the holder of the money has a direct claim from the central bank, not a commercial bank.
If this money can be kept and transferred to foreign people and institutions, it can be called digital real abroad or offshore real. Of course, offshore reals are not necessarily CBDC and may also exist in the form of bank deposits.
Can the Central Bank of Iran create a new market for regulating foreign trade by issuing a digital Rial that can be used abroad?
Such a market can be technically planned; But its success depends on the acceptance of riyal by foreign parties and the possibility of converting it into the currencies needed for the business.
Whether the digital real can replace the dollar or not depends on the acceptance of the foreign party.
To expand the use of digital riyals, Iran can negotiate cooperation in a monetary settlement with its trading partner countries.
It is better for the Central Bank of Iran to use the digital Rial in the first stage for real settlement of export and import transactions and a clear record of obligations.
In the next step, the market for valid export certificates must be connected to the system. After that, if there are formal and operational agreements, the possibility of a foreign settlement in the currency of the partner countries will be given.
The main advantage of this technology is the increase in speed, transparency and the ability to monitor transactions.
Full text.
The official channel of Donya Akhtaz newspaper.