Economy, Business And Markets

More Bureaux de Change Register

More Bureaux de Change Register More Bureaux de Change Register

Central Bank of Iran has issued permits for 410 bureaux de change, director of CBI’s Licensing Department, Hamidreza Azargoun said.

Speaking on the sidelines of Press and News Agencies Exhibition in Tehran, Azargoun referred to the one-year deadline given exchange shops to fall in line  and said 250 money changers that had failed to renew their licenses in the said period had their licenses revoked, ISNA reported.

He noted that a list of authorized exchange companies is posted on the CBI website and “those now on the website have either renewed their licenses or are in the process of receiving it.”

Unauthorized operation in the foreign exchange market is of two types, he said, “some conduct their business underground and have no intention to get registered with the regulator. The others are those who have permits but have not renewed it, thereby failing to meet the new regulations.”

Azargoun, however, said handling the aberrant exchange companies is the responsibility of the law enforcement officials.

The bureaux should apply for an operating permit from the central bank, by meeting the bank’s requirements and accepting its oversight.

Currently, there are over 1,400 bureaux in Iran, but only a few are certified and regulated by the central bank, latest statements by the bank show.

 Affiliated Companies

Kourosh Parvizian, head of the Private Banks’ Union, said that banks’ foreign exchange departments have been developed in the past two years in line with the CBI foreign exchange market polices, IRNA quoted him as saying.

“Bank-affiliated exchange companies are licensed by CBI and they operate within the CBI framework, “he said.

Banks have come under fire in recent weeks for their intervention in the foreign exchange market—something that observers reckon to be the progenitor of the recent bull run for the greenback and other major currencies.

Addressing the recent volatility in the forex market, Parvizian said that the hike in market rates is probably caused by the uncertain conditions of the market.

He noted that the “government and CBI have enough hard currency reserves to stabilize the market if necessary.”

Parvizian noted that forex exchange fees are currently at 7-8% but with the lifting of sanctions fees would be lowered leading to more stability the market.