A Review on the Role of Esteqrāzi Bank in Iran's Economy

In this article an attempt has been made to explain the economic, political and social fundaments for establishing the Russian Esteqrazi Bank in Iran and to analyze the role of this bank in the economy of Iran. Firstly, the overall history of establishing banks in Iran, such as the Shahanshahi (imperial) bank is presented and the background of establishing the Esteqrazi Bank is discussed. According to the treaty signed between Iran and Russia and the functioning of the Esteqrazi Bank, the author concludes that the Russian government aimed to stabilize its political dominance over Iran and to create some kind of sustainable economic dominance by establishing the Esteqrazi Bank. This bank tried to attract the financial resources of Iran and transfer them to Russia under the veil of economic activities. The author believes that it is from a socio-political viewpoint that the encroachments of Russia upon Iran could be justified and it is from this viewpoint that the role of the Esteqrazi Bank could be analyzed as a branch of the novice capitalistic structure of Russia. The article continues with more information about the status of the Esteqrazi Bank in Iran’s economy and politics by discussing issues such as: the bank’s role as a tool to exert pressure on the elite, its impact on traders and trade in Iran, investment of this bank in Iran’s oil industry, exit of silver money from Iran and devaluation of Iran’s currency, and the bank’s betrayal for establishing Iran’s national bank.