The Association of Bureaux de Change has called on the Central Bank of Iran to let exchange shops trade foreign currency online.
"If the laws are revised to allow people to buy and sell currency online without going to exchange offices, it will have a positive effect on the forex market," Kamran Soltanizadeh, head of the association told Tasnim News Agency, CBI has banned all online currency trade. According to Article 28 of a directive related to the establishment, activities and supervision over the moneychangers, any form of currency trade on cyberspace is prohibited and should be undertaken only licensed forex shops.
Soltanizadeh said based on the existing rules is deposited into the foreign currency bank accounts of buyers. "If the CBI issues permits for online sale of currency by exchange shops remotely, similar to banking services, it will certainly cut the long queues at exchange offices and bank branches."
"With this method, people can buy or sell currency from exchange offices online 24/7 and the money will be transferred to their bank accounts" with the press of a button.
He emphasized that exchange offices and the association are willing and able to trade in currency online using a new software and spoke about a new accounting software for exchange shops. Updates have been made to the association’s application, which can help facilitate and expedite the process of buying and selling currency by the people.
Exchange shops trade currency using CBI resources and at rates set by the regulator.
Up until recently every Iranian can buy a fixed amount of foreign currency at slightly lower rates compared to the open market by presenting an ID. The rule led to long lines of buyers who then sold it in the open market at higher prices to make an extra buck.
Accordingly, selected banks and authorized moneychangers are allowed to sell currency up to €2,000 to each Iranian a year at rates announced on the Iran Center of Exchange (ICE) website.
Earlier the CBI said that buyers of foreign currencies must have a forex bank account with domestic financial institutions, requiring moneychangers to transfer the forex amount only to those accounts. Besides, buyers of cheaper currency are obliged to have at least $100 or €100 in their accounts for at least six months, otherwise they are not eligible to buy currency.
The measure apparently is to prevent middlemen from using the ID cards of the poor and homeless and use them as money mules.
Moreover, the measure is likely to help revive foreign currency accounts in the banking system. Such accounts were popular among the public until late 2010s, when the government required banks to pay back the forex deposits' equivalent in Iranian rials, rather than the currency put up by the accountholders.
Since then various policies came into force to attract people's trust on forex accounts but mostly flopped.
As technology continues to reshape the financial landscape, the integration of digital solutions into traditional financial sectors becomes increasingly crucial. The efforts of the association to adopt innovative software and explore online currency trading options reflect a proactive approach to the evolving market dynamics.
It is anticipated that such advances will not only streamline currency transactions but also contribute to the overall efficiency of Iran's financial system. As exchange offices embrace online platforms, citizens will have greater access to currency trading services, allowing for more flexibility and convenience in managing their financial affairs.
