Central Bank of Iran closing loopholes in currency allocation

Financial Tribune – The Central Bank of Iran is going to launch a mechanism for tracking forex allocated to the import of essential goods to ensure importers fulfill their commitments for which they acquired foreign currency, the CBI governor said.

The measure is intended to close loopholes and prevent abuse that plagued the allocation of subsidized currency in 2018 whereby some traders took forex at hugely subsidized rates (USD=42,000 rials) and sold it much higher rates in the black market due to improper oversight.

Abdolnaser Hemmati said Thursday that on the orders of President Hassan Rouhani, the initiative will be taken to eliminate one loophole of corruption in foreign trade that also is in line with previous measures undertaken by the CBI to regulate the monetary and financial operations.

According to the CBI website, the system is to provide banks, Industries, Mine and Trade Ministry, Customs Administration and the Iranian National Tax Administration access to information about the activities of importers.