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Central Bank of Iran Tightens Capital Rules for Currency Exchangers

Foreign Currency Exchangers in Iran

Central Bank of Iran announced on Monday that foreign currency exchangers need to increase their capitals and bonds by over five times in order to continue operations. Morteza Sattak, Deputy Governor of Central Bank of Iran, says this decision has been made according to feedbacks received from economists and analysts.

“During the recent months, we have held several sessions and meetings with top economists of the country in order to discuss issues related to foreign currency exchangers. Unfortunately, several exchangers have tried to take advantage of recent turmoil in Iranian markets.” Morteza Sattak remarked in an interview with local media on Sunday.

“In order to cut abuses, Central Bank of Iran has decided to limit the operations and activities of foreign currency exchangers in Tehran and other major cities of the country including Shiraz, Mashhad, Qom, Isfahan and Tabriz. Accordingly, currency exchangers should increase their capitals by over five times.” Morteza Sattak added.

Sattak went on to declare that CBI is determined to cut the number of official exchangers in the country. “At this time, almost 692 exchangers have managed to obtain the necessary certifications and endorsements from Central Bank. We are working hard to reduce the number of certified exchangers to control currency markets more effectively.”

Deputy Governor of Central Bank of Iran believes that foreign currency exchangers should only buy and sell currencies in cash. Currently, buying and selling wire-transfers are the main revenue streams of currency exchangers in Iran.

“In near future, exchangers will be banned from buying, selling and trading wire-transfers. In other countries, only a limited number of financial institutions and banks are allowed to do this job. Currency rates can be controlled by stopping exchangers from violating rules governing this sector.” Morteza Sattak concluded.

Over the past few years, Iranian Rial has lost its values against foreign currencies by over 150%.

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