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CBI Steps In to Facilitate Travel Money Exchange

A new mechanism will allow travel agencies to provide foreign currency for travelers with no need to refer to a bank

Iran's Cultural Heritage, Handicrafts and Tourism Organization is in talks with the Central Bank of Iran to develop a mechanism within travel agencies whereby tourists' money could be exchanged. 

According to Mohammad Moheb-Khodaei, tourism deputy at ICHHTO, the general principles of the plan have been outlined but the CBI requires firm guarantees and clearer procedures which are currently being worked out in cooperation with travel agents. 

"In the new system, travel agencies will act as exchange shops for tourists and a system has been defined to prevent a black market," he told ISNA. 

He explained that agencies will be connected to the authorized banks through a network and travelers will be able to receive their currency in the same office after their eligibility is approved. 

"In fact, banks are not completely eliminated from the procedure but access has become easier," he said. 

The move is in line with ICHHTO's plans to offer travel services through a single window to prevent confusion. 

  Possible Pitfalls 

There are concerns that the new scheme will create other challenges, but Moheb-Khodaei assured it will not because "agencies are connected to banks and ICHHTO will keep a close eye on their operations." 

Although it is an advantage for agencies' customers, those who travel independently or buy their package online or elsewhere cannot benefit from the new facility. 

"Tourists shouldn't receive services from any random business after all. This will simultaneously prevent referrals to illegal tour operators," the official said, adding with uncertainty that reliable websites would probably offer exchange services as well. 

As per new forex regulations, all exchange shops have been banned from activity and the task is given to select banks. 

Foreign currency for travel purposes is set to be given to tourists once a year at a predefined sum and rate. 

For this, travelers have to submit their documents, including tickets and visas, to one of the branches of the banks.

If approved, the banks will then give them drafts with which they can finally receive the hard cash at airport branches upon their departure. 

The new mechanism aims to remove the need for multiple personal referrals before a trip. 

However, inbound tourists still face difficulty in obtaining rials in Iran. 

They are directed to the select banks but the method is not easy for foreigners. 

"We are considering authorizing agencies, hotels or tour guides to take the responsibility, but the details will be determined later," Moheb-Khodaei said.