EghtesadOnline: In a directive on Saturday, the Central Bank of Iran authorized foreign currency transfers (through the hawala system operated via the Integrated Forex Deals System) of up to €5 million or its equivalent in other currencies for imports undertaken by production enterprises, subject to the approval of the related ministry.
As per the modified procedures, companies that apply for a letter of credit are required to pay the issuing bank as much as 20% upfront in rials, CBI’s website reported.
The directive will expire on November 21. The Iranian government announced a unified exchange rate in April and banned transactions beyond that rate to contain a currency crisis.
The government also requires merchants to bring back their export earnings to the country by depositing them in banks or using it for imports, Financial Tribune reported.