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Iran Press TV

Iran tightens currency control by setting cap on carrying foreign cash

Iran Press TV

Sunday, 07 June 2020 5:16 PM

The Central Bank of Iran (CBI) has imposed a cap on how much individuals can carry foreign cash amid efforts meant to stabilize the foreign currency market in the country.

The CBI said in a Sunday statement that it had ordered the banks and credit institutions across the country to process requests by individuals who want to declare carrying sums above 10,000 euros or their equivalents in other foreign currencies.

The statement said holding, carrying or exchanging foreign banknotes above the limit would require documents from credit institutions or the customs office that would enable holders to keep the cash for six months.

It said the amount of cash exceeding the limit should be either deposited or sold to the credit institutions after the six-month period based on the price announced on a government-run website monitoring the forex dealers.

The CBI said that foreign cash holders would have three months to obtain the required documents or face legal action.

It warned that money laundering and terrorism financing laws would also apply to people who refuse to declare foreign cash that has been earned through illegal means.

The announcement comes amid CBI efforts to calm the exchange market in Iran where foreign currency prices have soared in recent weeks mainly as a result of closures in the country over the spread of the new coronavirus pandemic.

Iran's national currency rial was trading low against the US dollar at 177,200 on Sunday, reports from the unofficial currency market in downtown Tehran showed.

The CBI says it is unwilling to interfere in the forex prices although it insists that its measures would help the rial regain part of its lost value in the near future.

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