Foreign Trade Risk: The Risk Of Exporting To Iran Becomes Higher!

According to the Iran daily on September 8, Huo Dawan, deputy chief of the police department of Tehran, said on September 1 that seven people were arrested for establishing "exchange bill trading channels" on social media, which partly contributed to the rise in the prices of major foreign currencies in Iran.

Hoda said the group had made 3 trillion Riyals (12 million US dollars) in exchange transactions, and police searched its home and found a large number of dollars and vending machines. At the time of the arrest, one dollar was exchanged for 250000 rials, an increase of nearly 10% over the previous week.

Since then, the quota of foreign currency exchange for ordinary Iranian people will be suspended from February to September, The reason is that the gap between the bank exchange rate and the open exchange rate of the market has widened recently, forming arbitrage space 。

The head of a bank's exchange point said the suspension was to control arbitrage by those who did not have real demand, The bank will continue to provide exchange service for the people who really need it, but it needs to provide appropriate exchange service prove 。 At present, Iran's import and export will be affected by the current domestic sanctions.

So, what should foreign traders pay attention to when exporting to Iran?

In recent years, the Iranian currency has depreciated sharply, and the Iranian real has depreciated against major currencies The range is more than 40 times 。 At present, the exchange rate of the US dollar against the Iranian Riyal is as high as 42000:1, reaching the highest level of 44120:1.

In the past 10 years, the devaluation of the Iranian Riyal against the US dollar has exceeded 400%. In the grey trading market, 156000 Riyals can be converted into one dollar, which is four times the official offer. The latest data show that Iran's annual inflation rate is at 30.4% in August 2020 , the highest level since September last year, The previous month was 26.9%.

according to the investigation ， Inflation in all categories is accelerating ：

In addition, Iran's consumer price index rose 3.5% in August and 6.4% in July. Severe devaluation of Iranian currency It directly led to the serious obstruction of local import and export trade.

Additional information ：

Iran's central bank governor hermat said that the current zero in the face value of Iran's currency is frightening. The real has been seriously devalued due to accumulated inflation. The central bank must implement the monetary reform plan as soon as possible, It is expected that in two to five years, the real will co-exist with the new notes to be issued in the future.

However, it should be noted that US Secretary of state pompeio announced that the United States will resume comprehensive sanctions against Iran, The sanctions began on September 20 and lasted for 30 days 。 We will always pay attention to the specific impact of sanctions.

Iran's "financial Tribune" reported on August 30. Hamid zadebum, head of Iran's trade promotion organization, said that since March 2019, Iran's import ban list has added 800 kinds of goods, bringing the total number of prohibited imports to 2400.

In the first four months of this year (March to July 2020), the, Iran imported $11 billion worth of goods ， Among them, 84% are semi-finished products, parts and raw materials, and the rest are consumer goods (final products), mainly rice, bananas and mobile phones. At present, rice is also included in the list of prohibited imports.

According to the latest data of the Iranian customs administration, 13.8 million tons of goods worth 13.7 billion US dollars were imported in the first five months of this year (March to August 2020), a decrease of 22.7% compared with the same period last year.

Two years ago, in order to save foreign exchange under US sanctions, The government banned the import of 1339 products classified as "four categories". The "four categories" of goods are considered as "non essential" goods, with the same kind of domestic goods. The task of the Ministry of industry, mining and trade is to identify more unnecessary imports, or those that can be produced by local enterprises. Last year, the number of prohibited imports reached 1 600 species 。

Special reminder!

Foreign trade friends with Iran need to pay attention to Regulations of Iranian Customs on goods imported from China ：

Please keep in touch with your customers, pay attention to the collection risk and pay close attention to the market changes.