Central Bank of Iran Opens Export Revenues to Imports via Crypto: Will Trade Continue?

Iran has opened more space for businesses to use export revenues via Bitcoin and USDT to maintain trade under sanctions.

According to a report by the Financial Times citing regime insiders and analysts, the Central Bank of Iran has loosened foreign exchange controls in recent months. Businesses can now convert their export revenues through crypto exchanges in Iran at the market rate and use them for their own import payments.

Previously, exporters were required to transfer a significant portion of their foreign currency earnings to a state platform operating at the official rate. Since the official rate often falls below the market rate, companies were driven to keep their money abroad or bring it into the country through undeclared channels. With the new practice, businesses can process import payments outside the official system by using export revenues at market rates.

Iran also loosens oversight of crypto exchanges

Alireza Bozorgmehri, a member of the Iran Digital Transformation Association, stated that the Central Bank has also relaxed its scrutiny of crypto exchanges. Bitcoin and Tether’s stablecoin, USDT, are among the tools businesses can use to bring revenues into the country and utilize them for commercial payments.

Iranian officials estimate that businesses have accumulated more than $100 billion in undeclared earnings both domestically and abroad. Crypto-based trade has been used in the country before; in 2022, Iran placed a $10 million import order financed with crypto assets.

However, this channel remains under the pressure of U.S. sanctions. In July, Washington blacklisted four wallets linked to the Central Bank of Iran. Subsequently, Tether froze 131 million USDT. Last month, the U.S. expanded the scope of sanctions against Iran to include gold, shipping, and technology sectors, in addition to crypto assets.

It is reported that businesses in Iran continue to use exchange offices in neighboring countries to bring funds back. While the payment channel operated through crypto opens space for trade, it remains under pressure in the face of U.S. sanctions.