As tensions escalate in the aftermath of the Iranian regime’s missile strike on Israel, the Iranian Central Bank has announced a new measure to curb currency trading by threatening taxation on buyers.
The surge in dollar prices in Tehran’s market over the past two months, exacerbated by the recent missile attack, has prompted security concerns and led to increased regulatory measures in the currency market. Now, the Central Bank is targeting currency traders and buyers with the threat of imposing high taxes, a move experts believe is aimed at suppressing prices and market actors.
Today, in an interview with the official IRNA News Agency, Ali Shahabi, Deputy Director of Economic Research and Policies at the Central Bank, warned of the possibility of currency buyers falling under heavy taxation due to recent governance measures implemented in the Iranian rial market.
#Iran News:
Iran’s #Economic Crisis Escalates as Officials Shift Blame Amidst Rising Priceshttps://t.co/0lZW3y5IJi— NCRI-FAC (@iran_policy) April 11, 2024
Shahabi attributed the recent market fluctuations in the informal currency market to speculative demand and precautionary demand, describing them as “speculation” and “reserve demand.”
Responding to concerns about “future transactions” and online trading, Shahabi suggested proposals for establishing a market for currency derivatives trading and defining a formal and legal framework for future transactions.
These statements and the subsequent security crackdown in the currency market come after heightened anxieties in Iran following the missile strike on Israel, causing the value of the US dollar to surpass 70,000 Iranian tomans, while the euro reached 74,750 tomans and the British pound soared to 87,250 tomans.
As Tehran’s currency market reached record highs, security forces have increased their presence, imposing transaction restrictions and detaining certain market participants.