Central Bank Governor Announces Removal of Dollar from 'Tourism Transactions' with Regional Countries

Mohammad Reza Farzin, the Governor of the Central Bank of the Islamic Republic, stated on Saturday that the practical experience of 'removing the dollar from non-commercial and tourism transactions' occurred for the first time in the country during this year's 'Arbaeen'. He mentioned that the 'expansion' of this issue to other regional countries is 'under expert review' and will soon be implemented. If such a plan is executed, Iranians intending to travel to regional countries will not be able to receive dollars for their 'travel currency'. Travel currency is a type of allowance for individuals planning to travel to other countries. Anyone intending to travel for 'pilgrimage and tourism' to a foreign country can receive travel currency once a year. Although obtaining this currency has its complexities, it is considered worthwhile due to the price difference with the free market rate. To receive travel currency, in addition to providing a series of identification documents and filling out various forms, one must also have a 'printout of the ticket'. In his Nowruz speech on the first day of the year 1402, Ali Khamenei emphasized the need to reduce the government's role in the country's economy and move away from the dollar, stating: 'One of the problems of our economy is dependence on the dollar. Some countries that were sanctioned cut their dependence on the dollar, and their situation improved; we must do the same.' The remarks of the Supreme Leader of the Islamic Republic were met with reactions from economists within Iran, with Payman Molavi writing in this regard: 'All major currencies are defined against the dollar, whether yen, euro, pound, or yuan. The dollar is a universal currency that countries use for reserve and transactions; it cannot be eliminated in any country.' The Islamic Republic and its priorities; 'unable' to meet the budget deficit for medicine; 'capable' of providing 'currency' for Arbaeen. The exchange rate for petrochemicals has reached 37,500 tomans; 'Farzin's dollar' is being phased out. Dollar de-dollarization remains ambiguous; a member of parliament says we want dollars more than anything else.