CBI Sets New FX Rules & Regulations

The Central Bank of Iran (CBI) has issued a new directive limiting the amount of foreign currency people can keep or carry.

According to the new directive, individuals can possess no more than €10,000 or its equivalent in hard currency. The directive also adds that individuals carrying or keeping more than this amount would need to have multiple documents proving they are authorized to do so. These documents would be valid for a maximum of six months from the date of issue.

The directive adds that those who have more than €10,000 or its equivalent in hard currency have three months to either deposit their cash to a foreign currency bank account, sell it at an exchange store or credit institutions.

The move is the latest in series of occasional measures taken by the Iranian government to control the forex market.

According to the Governor of the CBI, Abdul Nasser Hemmati, some $280 billion had been injected into the local foreign exchange market over the past fifteen years to support the rial.

Carrying Foreign Currency for Travel

The regulations for taking hard foreign currency out of Iran remains the same with a limit of €5,000 when traveling by air. The limit is only €2,000 when traveling by land.

This is while there is no limit of carrying foreign currency when entering Iran and passengers can bring in hard currency without any limits.

The value of one dollar against the Iranian national currency has surpassed 180,000 rials in the open market in recent days. This is while the value of one euro against the rial has reached 200,000.

The global economic downturn as a result of the coronavirus pandemic and the closure of borders between Iran and its neighboring countries – which brought trade to a halt – along with intensified US sanctions which have reduced Iran’s oil income are said to be the main factors behind the recent devaluation of Iranian currency.

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