The Central Bank of Iran (CBI) has issued new regulations making foreign exchange obligation clearance conditional on price confirmation and the sale of goods through distribution networks approved by the Ministry of Agriculture, Mashregh reported on May 23.

The new regulations aim to streamline the foreign exchange obligation clearance process while ensuring essential goods are sold at government-approved rates through authorised distribution channels.

The circular was issued following efforts by the Iran Chamber of Commerce's Business Environment Improvement Centre and pursuant to a resolution by the Government-Private Sector Dialogue Council to resolve previous ambiguities.

According to Central Bank circular number 315570/02, dated March 2024, foreign exchange obligation clearance is conditional on confirmation and the sale of goods at approved rates through distribution networks announced by the Ministry of Agriculture.

The regulations specify that exchange rate differentials are calculated up to the selling rate for essential goods transfers listed in the Electronic Currency Trading System, rather than at transfer rates on clearance dates.

Form 14, titled "Price Setting Confirmation and Goods Confirmation at Approved Prices Based on Preferential Exchange Rate of 28,500 rials per dollar," was established under clause six of circular 212727/03 dated November 2024.

However, importers of essential goods, such as soybean meal, reported that the Ministry of Agriculture opposed the binding clauses in Form 14, causing confirmations sent by the ministry to be rejected by operating banks and disrupting companies' foreign exchange obligation clearance processes.

The Ministry of Agriculture and Food and Drug Organisation were tasked with notifying operating banks in writing of cases where approved prices or distribution networks were not observed.