If you plan to purchase foreign currency under the quota scheme, allocations of up to $10,000 using a national ID card began at five selected banks in Iran on Saturday, October 3. The scheme is intended to allow genuine applicants who need foreign currency for purposes such as travel, medical treatment or education to obtain it through official banking channels. The exchange rate for the $10,000 allocation is also lower than the open-market rate.

This article explains the necessary information, required documents, banking procedures and new regulations in clear and practical terms to help applicants apply for the allocation.

Which banks offer quota-rate foreign currency?

Under a Central Bank directive, five banks are currently responsible for supplying the $10,000 foreign currency allocation:

Bank Melli Iran
Bank Mellat
Tejarat Bank
Bank Saderat Iran
Saman Bank

Tehran residents can purchase foreign currency from selected Bank Melli Iran branches, including the Central, Bazaar, Hafez, Ferdowsi, Saadi, Eskan and Mirdamad branches, as well as the bank’s exchange company.

What are the basic requirements for buying dollars with a national ID card?

Applicants must meet the following requirements to receive the foreign currency allocation:

Applicant’s age: You must be at least 18 years old.
Mobile number: You must have an active SIM card registered in the applicant’s name.
National ID card: A national ID card is required.
Time restriction: Each individual may use the allocation only once a year, with at least 365 days having passed since their previous foreign currency purchase.

How to obtain the dollars

According to the Central Bank, applicants must visit a selected branch of one of the five banks with their national ID card. Once the application is registered, they can receive an allocation of up to $10,000.

Exchange rate for the $10,000 allocation

Some believe the allocated currency is priced at the dollar remittance rate published by the Iran Center for Exchange of Currency and Gold, which is 175,000 tomans. However, this is incorrect. The rate is slightly below the open-market rate and has been set at 259,000 tomans per dollar.

Purchasing the full $10,000 allocation at the announced base rate would therefore require 2.59 billion tomans. This calculation does not include any potential fees.

Will the travel currency allowance be discontinued?

Applicants have questioned whether purchasing the allocated currency will affect the $1,000 travel currency allowance. According to the Central Bank’s announcement and the issued regulations, purchasing foreign currency under this category will not prevent applicants from using other foreign currency categories, including travel allowances and allocations for essential needs.

What is the purpose of the scheme?

The initiative is part of a policy package introduced by the Central Bank of Iran, which includes plans to supply and intervene in the foreign exchange market with up to $2 billion. Its stated aim is to increase supply and ease pressure caused by uncertainty and market expectations.

In a recent statement, the Central Bank said current exchange rates were not fully aligned with the economy’s fundamentals, adding that part of the rise in prices had been driven by heightened uncertainty, psychological pressure and market expectations.

The Central Bank stressed that its objective was not to defend a specific exchange rate or figure, but to maintain monetary and foreign exchange stability and prevent fluctuations unsupported by economic fundamentals from becoming entrenched.

Source: Digiato