The Central Bank of Iran is working on measures to help attract more foreign currency to the banks.
Ahmad Lavasani, head of the High Council of Iran Exchange Shops Union, says the CBI will encourage banks to issue guarantees on foreign currency deposits to persuade people to deposit their forex with banks, ILNA reported.
As per the plan, banks will guarantee that the money will not be blocked under any condition and that the deposit and interest will be repaid in the same currency.
Iranian lenders offer 4-6% interest on forex deposits. For instance, Bank Saderat Iran, Bank Mellat and Bank Melli Iran pay 6% on US dollar deposits.
The move is to address the anxiety of customers that if they deposit hard currency in a bank at the time of withdrawal the bank would pay back their money in rials.
Local banks offer higher rates on forex deposits compared to other countries, which according to analysts is in the interest of lenders and helps attract export revenue.
The CBI is also working to ease restrictions on foreign currency accounts so that the people feel safe when putting their money in banks.
As per CBI requirements and in line with anti-smuggling laws, Iranians holding more that €10,000 are subject to an official probe.
Retaining forex over and above the set limit is allowed only if applicants show one of the following documents: A bank receipt or any other document proving that the amount has been reimbursed by a bank.
An authorized receipt from an exchange bureau registered in the CBI's SANA system. A printed receipt containing the tracking code that indicates the currency was declared upon entering the country.
According to Lavasani, the CBI is also planning to lift the forex ceiling for travelers entering Iran.
"Once the measure is implemented, travelers will face no hassles regarding hard currency they hold while entering Iran.”
Based on the regulations, travelers and truckers in transit and entering the country should declare currency over $10,000 to the Ministry of Economy’s Financial Intelligence Unit, in line with international anti-money laundering statutes.
When bringing in foreign currency and/or banking instruments like checks, guarantee checks, traveler checks and other transferable financial instruments plus bonds, the holder has to declare it and receive a e-tracking code.
The Islamic Republic of Iran Customs Administration sends that information to a Bank Melli Iran system and directs the traveler to a branch.
BMI gives confirmation to IRICA, which sends an inquiry to the Financial Intelligence Unit of the Ministry of Economic and Finance Affairs, during which time BMI keeps the money.
