Iran eliminates USD from import orders

In this Saturday, April 4, 2015 photo, Iranian and U.S. banknotes are on display at a currency exchange shop in downtown Tehran, Iran. Iran's official IRNA news agency says that President Hassan Rouhani's administration is proposing changing the name and denomination of the country's currency. The report says the Cabinet approved a measure on Wednesday calling for the change from the rial to the toman. One toman would be worth 10 rials, or around 3,200 to a dollar at official exchange rates, and 3,900 to a dollar at unofficial rates. Parliament will have an opportunity to weigh in on the proposed change before it goes to the constitutional watchdog Guardian Council for approval. (AP Photo/Vahid Salemi)

The Governor of the central bank has announced that imports will no longer be registered with the US dollar. Iran  newspaper writes that until now, orders via the banking system had to be registered using currencies other than the US dollar. However, non-banking orders i.e. orders via exchange offices had no such limitations. Due to the remaining financial sanctions by the US government, the Iranian government is seeking to completely remove the US dollar from the trade cycle. Therefore, from now on importers must register their orders based on non-USD currencies even if registering via exchanges. Mohammad Lahuti, Chairman of the Export Confederation of Iran believes this will lead to a slight increase in price for importers, especially for petrochemical products for which the global rates are set based on the USD; meaning the importer must pay to exchange the currency. In spite of this, the private sector agrees with the government that moving away from USD in trades will reduce the number of problems.