Instructions for "Organizing the Currency Market and Supporting Domestic Production" In order to organize the currency market and support the domestic production of all executive agencies and banks and credit institutions, NGOs and Islamic revolutionary institutions are required to do the following (as appropriate): 1. The Central Bank of the Islamic Republic of Iran issue the following requirements for the operation of the banking system regarding the Letter of Credit (LC) for the import of goods whose import is allowed at a free rate:

1. A. According to the applicant's credit status, at least (10) percent of prepayments are based on the dollar rate (IRR 36,000), in part payment. B- (100) percent of the LC must be settled at the time of the transaction with the same day's rate or the date of the issuance of the certificate of statistical registration (whichever is the lesser), after accounting the amount of Rial received for the prepayment (of the statement under clause (a)).

This is a valid for 6 months from the date of LC.

2. Exporters of petrochemical products (except gasoline, petroleum, kerosene, petrol, liquid gas and air fuels) and steel, copper, aluminum, iron ore and iron concentrate, Petrochemical liquid gas are obliged to expend (or to sell) the export currency Based on the policies and coordination of the Central Bank of the Islamic Republic of Iran.

 

2. The Central Bank of the Islamic Republic of Iran should purchase the foreign exchange earned by exporters of major export products by the banks at the latest by 15^th March 2017 and the converters will return to their normal duties.

 

2.  The Central Bank of the Islamic Republic of Iran, as the trustee of the country's currency management, is required to manage the balance of payments and receipts by foreign exchange management. To this end, all the relevant units and organizations, in particular the Ministry of Industry, Mining and Trade, Ministry of Oil and Customs of the Islamic Republic of Iran, are required, to fully exploit and establish a systemic and online passenger connection, within a maximum of two months focused on the Central Bank of the Islamic Republic of Iran, using a Comprehensive Trade System. (Subject to paragraph (a) of Article 6 of the Currency and Materials’ Anti-Smuggling Act of (3) and (35) of the Implementing Regulations of the Act).

 

5. The Central Headquarter against smuggling of goods and currency is obliged to set up a system for the identification against trafficking in goods (subject to Note 3 of Article (5) of the Anti-Smuggling Law of goods and currency), and to intensify the struggle against this phenomenon from entry to major supply. Note - All foreign trade organizations of Iran are obliged to provide the required information online in accordance with the existing rules and regulations in one month.

 

6. The condition of registration of automobiles and other durable goods will be determined by the Ministry of Industry, Mines and Trade subject to authorized dealers and after sales services, and it is necessary to prohibit the import of vehicles and goods which excludes this precondition as soon as possible.
7. The Central Bank of the Islamic Republic of Iran is required to set up the necessary criteria in electronic payment systems in order to observe the rules and regulations against money laundering and present the related report. Note - The Central Bank of the Islamic Republic of Iran is required, in cooperation with the Financial Intelligence Unit, to provide financial terms and conditions for the physical transfer of foreign currency and funds on the basis of rules against money laundering within one month.
8. The Ministry of Information is required to report to the central bank of the Islamic republic of Iran on a weekly basis to monitor the situation of the foreign exchange market.

 

9. Usance for the import of raw materials and spare parts without considering a roof is allowed for one year; and for more than one year it could be performed case by case and by the agreement of the Ministry of Industry, Mining and Commerce and the Central Bank of the Islamic Republic of Iran.

 10. The use of usance credits is allowed up to a maximum of US$50 million in each case for import, completion and equipping of production lines of existing economic units up to a maximum of three years (if there is financial justification for the bank).

 

11. The Central Bank of the Islamic Republic of Iran is required to submit the criteria for limiting the activities of traders in non-commercial services to the Working Group on the subject of paragraph (14) of this notice, by the date of 28^th, Feb. 2017.

 

12. The banking system, financial and credit institutions and money changers are required to keep the entering and exiting of any currency as determined and announced by the Central Bank of the Islamic Republic of Iran, the place of supply of the rials and the place of consumption of the currency, in a written document of applicants and in transfer records for further consideration. Failure to comply with this paragraph will be in accordance with the regulations on smuggling of currency.

 

13. The Central Bank of the Islamic Republic of Iran shall apply from market to formal exchange rate of goods subject to the list of attachments.

 14. In order to ensure the implementation of this announcement, a working group consisting of the Executive Vice President (Head), Chief of the Central Bank of the Islamic Republic of Iran, Ministers of Industry, Mines and Trade, Economic Affairs and Finance, Information, Country and Justice, Head of The Country Planning and Budget Organization and the Head of Central Headquarters against Smuggling of Goods and Currency and the Invited Members (as appropriate), follow up all these decisions and present weekly reports to the first vice president and head of the Resistance Economics Committee.

Eshaq Jahangiri First Vice President and the Head of the Resistance Economics Command