The Iranian parliament has allowed the government to increase its Special Drawing Rights (SDRs) in the International Monetary Fund (IMF).
In an open session of the Iranian parliament on Wednesday, lawmakers endorse a government bill seeking to increase its assets in the IMF by SDR 1.783,600 billion to a total of SDR 5.350,700 billion (equivalent to more than $7.112 billion).
SDRs are the IMF's reserve asset, and are issued to member countries' central banks enabling them to exchange the funds for six major international currencies. The assets also increase members’ votes in the IMF which in turn affects allocation of loans by the Fund to member countries.
Central Bank of Iran (CBI) Governor Mohammad Reza Farzin said on Wednesday that Iran’s decision to increase its SDRs in the IMF was meant to maintain its special position in the Fund, adding that it was also an effort to protect Iranian funds frozen in other countries because of US sanctions.
Farzin, who was reappointed as CBI governor on Wednesday, said funds blocked in countries like Turkey and Iraq because of US sanctions can be transferred to the IMF allowing Iran to have an easier access to them in future while also benefitting from the interest accrued on them.
He accepted criticism by some parliament lawmakers about IMF’s failure to issue loans to Iran in the past under the influence of the US.
However, the CBI governor said Iran’s increase of SDR assets was necessary to maintain the country’s position as an old and influential member of the Fund.