Foreign Currency and Gold Exchange Center of Iran Starts Operation on February 21, 2023

Nouraei & Mostafavi Law Offices – February 20, 2023- Tehran- Iran- In line with the resolution of the Money and Credit Council dated 11 Bahman 1401(January 31, 2023), The Foreign Currency and Gold Exchange Center of Iran will start its official activity in the field of currency transactions (banknotes and money transfer orders) from Tuesday, February 21, 2023, the Public Relations of the Central Bank of Iran reported.

The Foreign Currency and Gold Exchange Center will have several halls for trading and supply of foreign currency and gold. In the first phase, the hall respecting the allocation of foreign currency to services and the hall for money transfer will be opened and start operating.

The Main Goals of the Center

Establishing the price determination authority, increasing the volume of official transactions, and easing the applicants’ access to foreign exchange and the gold market is among the most important goals of The Foreign Currency and Gold Exchange Center of Iran. In line with its activity, this center will pursue instrument building and institution building in the foreign currency and gold markets and the maximum strengthening and optimization of information technology infrastructures.

Foreign Exchange Transfer Hall

The necessary sources of foreign currency will be procured from the export income of petrochemical, copper, mining, steel, oil refining, bitumen, and revenue of other exporters in the foreign exchange hall of the Foreign Currency and Gold Exchange Center of Iran to importers for sale. Also, foreign currency supply for the import of medicines, medical accessories and equipment, and essential goods will continue at the rate of 28 thousand and 500 Tomans based on the online system of the Nima rate.

Service Foreign Currency hall

 With the launch of The Foreign Currency and Gold Exchange Center of Iran., while revising the headings of allocation of the service currency to respond to all real foreign currency needs, on the one hand, and replacing the anterior monitoring methods with posterior monitoring, on the other hand, the relevant headings aimed at facilitating the regulations, were adopted.                                                                                                            The titles relating to the foreign currency for medical affairs, the student foreign currency, the mission foreign currency, the foreign currency for travels, the foreign currency for domestic airlines, the foreign currency for land and sea transit companies, and other areas are among the most essential revised service foreign currency headings in the regulations.

The Process of Providing Foreign Currency in the Service Foreign Exchange Hall

 Applicants for Service Foreign Currency, referring to The Foreign Currency and Gold Exchange Center of Iran, will receive their actual foreign exchange needs in the form of foreign currency notes or transfer orders as follows: The applicants must refer to the relevant website and register their real needs for foreign currency and also upload the documents related to each heading in the system designed for the review of the relevant executive body. The relevant documents will be considered and reviewed by the appropriate administrative body. Then, the applicant will be referred to the National Bank of Iran (Bank Melli). The applicants, after confirmation of the payments made by them, will visit the selected branches of the National Bank of Iran to receive the confirmed foreign currency banknotes or transfer orders, and they are informed of the process accordingly.

Rate Discovery Method

 The exchange rates of foreign currency transactions at the cash and transfer  halls of the Foreign Currency and Gold Exchange Center of Iran shall be discovered and form the basis for the mutual transactions in line with the country’s foreign currency resources and expenses and essential economic variables.

Future Plans

The expansion of the halls, in compliance with the diverse foreign exchange needs, the development of trading instruments based on foreign currency and gold, including futures and swaps, setting the reference rate as the country’s foreign currency and gold reference rate, development of regional and international connections with regional and global financial and foreign currency markets, shall be the most important plans of the Foreign Currency and Gold Exchange Center of Iran.

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