Iran sets limit for citizen’s foreign currency holdings

The Iranian currency fell to an all-time low this week on concerns of more US sanctions

The Central Bank of Iran (CBI) announced a EUR10,000 limit for citizens’ foreign currency holdings outside banks on Tuesday, a day after the government announced a plan to unify official and open market exchange rates.

Citizens have until the end of the month to sell any excess foreign currency holdings or deposit them in banks, the central bank said in a statement published on its website.

Failure to do so would result in legal action, it said.

Late on Monday the government announced it would implement a plan to unify the official and open currency exchange markets in a bid to stabilise the rial.

The Iranian currency fell to an all-time low this week on concerns over a return of crippling sanctions if US President Donald Trump carries out his threat to exit a nuclear deal with Tehran.

The Central Banks set the price of the dollar IRR42,000 in all markets, and for all business activities. On the open market on Monday, the dollar traded at IRR60,000. In mid-September, the dollar was worth IRR36,000.

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The government said official rates would be in force from Tuesday and that police would arrest those trading dollars at other rates.

The official ISNA news agency said police in Tehran intervened at several currency exchange shops in Tuesday which were selling dollars above the IRR42,000 rate.