New guidelines by the Central Bank of Iran regarding the supply of foreign exchange for travel purposes have seemingly helped fix the flaws of the former misguided policy through creating a more efficient system despite jacking up the general cost of travel.
The maximum amount of currency allocated to travelers to foreign destinations had been set at €500 and €1,000 for neighboring and distant countries respectively and $200 for Saudi Arabia at the official subsidized exchange rate and on a once-a-year-only basis.
Pundits insisted that the subsidy should be eliminated to prevent the runaway outflow of foreign currency while others argued that the cap would cause trouble for those who might need larger sums such as health tourists.
The new set of rules, however, allows the purchase of up to €5,000 though at the free-market rate. Applicants are required to present relevant documents such as the ticket, passport and visa.
This means that travelers would pay the costs of their trip from their own pockets, but will be able to adequately meet their forex needs, ISNA reported.
Besides, the CBI has permitted exchangers to offer €100 to each person for consular services such as visa application. Prior to the readjustment, they had no other way of supplying consular fees but to refer to illegal markets.
Tour Operators' Needs
Tour operators, who were previously left out of the list of priorities for subsidized forex allocation, can now receive any amount of foreign currency at exchange shops by producing an invoice that has been confirmed by the Travel Agents Guild Association.
Travel agencies were obliged to find other channels to obtain the money needed to pay for travel expenses abroad and had frequently called for reforms in the regulations, maintaining that the continuation of the previous situation would force them out of business.
Companies that organize religious trips, including hajj and pilgrimage to Iraq, which were eligible to receive subsidized forex based on the earlier set of policies, are now referred to exchange shops to obtain their required money by submitting an application approved by the Hajj and Pilgrimage Organization.
Incoming Tourists' Woes
The resumption of exchangers' operations has also come as a relief for inbound travelers who had faced difficulty in exchanging their money.
As per the former regulations, only authorized banks were allowed to exchange foreign money causing confusion for tourists while reducing the availability of the rial.
The travel community's reputation suffered a blow as accusations were rife against those active in the industry, as some hotels, tour guides and agencies went out of their way to become involved in illicit money exchange practices.
In addition, tourists can now receive forex for the residue of their unspent rials by showing the bill of the initial exchange as well as their passport at an exchange shop.
