The Central Bank of Iran on Sunday banned companies from importing goods without declaring the origin(s) of their foreign currency.
In a press statement seen on its website, the CBI said that the prohibition is based on a decision by the Headquarters for Countering Sanctions of the National Securities Council.
Elaborating on the provisions of the new directive, the CBI said importers must use forex whose origins are transparent, adding that they must clearly identify the origin of the money to be able to import.
The rule applies to all commercial imports via the special, industrial and free economic zones and other entry points.
The bylaw, written to improve transparency of foreign trade and transactions, is valid until Feb. 19, 2023.
The CBI imposed a similar ban in 2018 amid steep volatility in currency market spurred by concerns about forex shortages after the United States announced fresh sanctions on Iran’s key economic and financial sectors.
Such restrictions have often met with criticism from importers and businesses. They criticize the CBI’s insistence on clarifying the source of currency used for import, arguing that such constraints, among other things, obstruct the need for bypassing the US economic blocakde.
Earlier Arash Mohebinejad, secretary of the Specialized Manufactures of Auto Part Association said importing goods without announcing the origin of the foreign currency helps skirt the sanctions. “It allows forex deals directly by the people and toward [helping] the economic cycle”.
Elaborating his point, Mohebinejad said, “The CBI has always insisted on knowing the origin of the money used for imports. This indeed makes dodging sanctions difficult as it also the other party [exporter],” he said.
Soon after the new US sanctions, the CBI introduced electronic platforms and obliged importers to declare the amount of currency needed for a particular good plus details regarding origin, volume and brand name to improve transparency in foreign trade, monitor currency allocations and curb capital flight under the tough sanctions regime.
The secondary forex market, known as Nima is one such platform. It is an online platform affiliated to the CBI where exporters sell their overseas currency and companies buy for importing goods, machinery, equipment and raw materials.
As part of the import-export procedures, exporters must sell part of their proceeds via Nima. They can use part of their earnings to import raw material for their own company or that of a third party in Iran.
