What is state exchange and how we define it?

Here, we are going to explain state exchange and compare it with free exchange. State exchange is a currency provided by the government at Currency Exchange Center. State currency is opposite of free exchange. Free exchange is currency that its price is determined in the open market with respect to economic conditions as well as supply and demand in the foreign exchange market. Free exchange is offered by brokerage firms and currency dealers. State currency does not apply to importing all goods but only some goods. The government divides the imported goods to ten groups. Among them, the tenth group is a group of luxury goods to which state currency is not assigned. Custom duties imposed on the tenth group, i.e. luxury goods, is double than that of other goods. Goods of the other nine groups receive state currency. However, with regard to domestic production potential, goods that receive state currency are gradually decreasing.

Providing free exchange is fast and easy without any restriction but, providing state currency is difficult and time-consuming and not everyone can get it. Any goods may be imported by free exchange but importing a number of goods with currency exchange is not possible.

Due increasing currency value, the government offers state exchange, which is less expensive, to reduce financial burden shouldered by state and assigns it to limited, controlled goods with certain conditions.

According to the Central Bank, this is how it calculate the state currency: this bank considers an account of traded currency in allowed brokerage firms and then based on the initial rate obtained from these transactions, after deduction of commission plus two percent of this rate, determines the rate of state exchange.

Notes:

  • State exchange does not include all categories of goods
  • State exchange is offered only for importing goods from certain countries
  • State currency will be provided all in cash as a Letter of Credit
  • Added to invoice amount, bank collects 35% of the sum as a bail.

Given that obtaining state exchange requires special conditions and takes a long and thorny process, in this regard, you can use the capabilities and knowledge of ETG trade experts. Ebrahimi Trade experts, with years of experience in custom consulting and clearance, will accompany and assist you to get your state exchange in the shortest time.

ETG accomplishes matters relating to cash transfers and documentary credits via Sepah, Parsian, and Post banks.

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If you have any questions or you need to consult, contact Ebrahimi Trading Group.