Iran restricts gold imports to control dubious trade

According to a recent report, the Central Bank of Iran (CBI) had decided to restrict gold imports “to manage the foreign currency market and control the smuggling of gold from the country”.

It cited a statement from head of Iran’s Trade Promotion Organization, Mohammad Ali Dehghan, which showed that Iranian exporters could no longer be able to import gold to pay their hard currency liabilities to the CBI.

Iran cut its tariffs on gold imports to zero in November 2022 to boost its gold reserves and to facilitate the return of funds held in other countries because of US sanctions.

However, reports published in local media have suggested that some exporters have been transferring gold from Iran to other countries to re-import and sell it in the domestic market to benefit from the difference between official and free market prices of foreign currency.

“Given the situation of the market and the new forex policies, gold imports would no longer be a proper instrument for exporters to pay their foreign currency liabilities, and the CBI has decided to impose restrictions in this regard,” Dehghan said in a news briefing on Saturday.

Iran imported around 100 metric tons of gold worth $8 billion in the calendar year to late March, according to the country’s customs figures.

CBI governor Mohammad Reza Farzin said in March that Iran was among the top five gold-buying countries of the world last year as he insisted that the lender had converted some 20% of its reserves to gold./isna