Iran Imposes Restrictions on Gold Imports Amid Dubious Trade Exposures

Iran's Central Bank has imposed restrictions on gold imports to manage the foreign currency market and control smuggling of gold from the country, according to a report. The move comes as Iranian exporters have been reportedly transferring gold from the country to other nations to take advantage of price differences between official and free markets. The restrictions aim to prevent exporters from using gold imports to pay their hard currency liabilities to the Central Bank of Iran, following a policy change in November 2022 that zeroed tariffs on gold imports to boost reserves and facilitate fund returns.

Key Takeaways:

• Iran's Central Bank has restricted gold imports to manage the foreign currency market and prevent smuggling, citing a statement from Mohammad Ali Dehghan, head of Iran’s Trade Promotion Organization.
• Iranian exporters had been using gold imports to pay their hard currency liabilities to the Central Bank of Iran, but the new restrictions aim to prevent this practice.
• Iran imported around 100 metric tons of gold worth $8 billion in the calendar year to late March, according to customs figures.
• Central Bank of Iran governor Mohammad Reza Farzin stated that Iran was among the top five gold-buying countries last year, with 20% of its reserves converted to gold.
• The restrictions were imposed after Iranian exporters were found to be transferring gold from the country to other nations to take advantage of price differences between official and free markets.
• The move is part of a broader policy to manage the foreign currency market and control smuggling of gold from the country.

Statistics:

• Iran imported 100 metric tons of gold worth $8 billion in the calendar year to late March.
• Central Bank of Iran governor Mohammad Reza Farzin stated that 20% of Iran's reserves were converted to gold.
• Iran is among the top five gold-buying countries last year.
• The zeroed tariffs on gold imports policy was instated in November 2022 to boost reserves and facilitate fund returns.
• The restrictions aim to prevent exporters from using gold imports to pay their hard currency liabilities to the Central Bank of Iran.

Sources:

• ISNA - Iranian Students' News Agency
• Customs figures for Iran's gold imports
• Statement by Mohammad Ali Dehghan, head of Iran’s Trade Promotion Organization
• Statement by Central Bank of Iran governor Mohammad Reza Farzin