After Market Security Measures; Central Bank Threatens Currency Buyers with Taxation

The increase in the price of the dollar in the Tehran market over the past two months, intensified by the Islamic Republic's missile attack on Israel, has led to a security-oriented currency market. Now, an official from the Central Bank has announced efforts to impose taxes on currency buyers and traders. Experts believe this action aims to suppress prices and market participants, while currency buyers seek to preserve the value of their assets rather than profit from currency trading. The Deputy Director of Economic Research and Policy at the Central Bank warned in an interview with the state news agency IRNA that, given the measures taken in managing the rial, the likelihood of currency buyers falling under tax scrutiny is very high. Ali Shahabi attributed the recent fluctuations in the unofficial currency market to factors stimulating demand for currency in the form of 'speculation' and 'precautionary demand.' Shahabi also responded to 'forward transactions' and online trading by suggesting proposals for establishing a market for currency derivatives and defining a formal and legal mechanism for forward transactions. These statements and the security approach in the currency market come after concerns in Iran peaked following the missile and drone attack by the Islamic Republic on Israel, with the price of one US dollar exceeding 70,000 tomans in the Iranian market. At the same time, the euro reached 74,750 tomans and the British pound reached 87,250 tomans. After new records were set in the Tehran currency market, security forces took extensive measures to restrict transactions and arrested some market participants.