The Amount of Currency Exiting Iran with Travelers Halved

On Sunday, May 12, the Central Bank of the Islamic Republic of Iran announced a reduction in the amount of currency that travelers can take out of the country via air borders from 10,000 euros to 5,000 euros. In the latest decision by the Iranian government to control the inflow and outflow of currency, the Central Bank stated: "The exit of currency, bank documents, and bearer securities accompanying travelers is allowed up to a total of 5,000 euros or its equivalent in other currencies from air borders and up to 2,000 euros or its equivalent in other currencies from land, rail, and sea borders." Following the sudden unification of the exchange rate announced on April 10, the currency allocated to air travelers for one trip per year was set at a maximum of 1,000 euros, which is paid at air exit borders. Previously, travelers could receive up to 5,000 dollars from banks by presenting their passport, national ID card, and ticket, with the price not differing much from the free market. Meanwhile, the economic team of President Hassan Rouhani explained the country's currency policies in a closed session of the parliament. Vice President Eshaq Jahangiri, Economic Vice President Mohammad Nahavandian, Central Bank Governor Valiollah Seif, and Minister of Economy and Finance Masoud Karbasian attended the two-hour session. According to Akbar Ranjbarzadeh, a member of the parliament's presiding board, Jahangiri reported on Ayatollah Khamenei's directive regarding the regulation of the currency market. In recent weeks, as it was anticipated that U.S. President Donald Trump would withdraw from the JCPOA, the currency market in Iran became turbulent. Following this, Jahangiri suddenly declared on April 10 that buying and selling dollars in the free market was illegal and stated that dollar applicants could obtain their required currency for imports at the price of 42,000 tomans from the government. Thus, the government, which is the main distributor of currency in the country, stopped the supply of dollar banknotes and provided it mainly in credit form to applicants. However, the dollar in the free market surpassed the 7,000 tomans mark. As Ranjbarzadeh quoted, Jahangiri mentioned that to prevent a rush of buyers in the currency market after the U.S. exit, the government had planned in advance to control it. The Vice President has stated that the government's priority is to meet domestic needs, with subsequent priorities including the needs of travelers and students. According to a member of the parliament's presiding board, Jahangiri has informed that the government has made proposals to the Supreme Leader for controlling the currency market, and subsequently, Ayatollah Khamenei issued a directive for coordinating other branches with the government. Mohammad Zarei, a member of the parliament's Industry and Mines Commission, also told Mehr News Agency that Valiollah Seif, the Central Bank Governor, spoke of "stability" in the currency market and emphasized that "the exchange rate will remain stable." Mohammadreza Rezaei Koocheh, the head of the parliament's Urban Development Commission, also reported similarly from this session, stating: "However, representatives were not satisfied with these promises and emphasized that these should not remain mere words and should be seen in practice." Ali Larijani, the Speaker of the Parliament, expressed hope before the public session began that with cooperation, "more precise decisions" would be made in this area. Donald Trump, the U.S. President, withdrew from the JCPOA on May 7 and announced that the U.S. would impose harsher sanctions against Iran. In this context, the prices of the dollar and euro in the free market of Iran increased; gold coins surpassed two million tomans. Rouhani: We have plans for all of Trump's actions. Iran is waiting for Airbus's decision regarding the purchase of 100 airplanes. India: It is still impossible to predict the impact of sanctions on oil imports from Iran.