Iran has implemented new regulations governing the purchase of US dollars as its economy faces increasing strain from international sanctions. According to reports from the Fars news agency, the latest guidelines permit individuals to acquire up to $10,000 in total, with a daily limit of $1,000. This measure aims to manage the dwindling foreign currency reserves and stabilise the financial system.

For smaller transactions, customers can utilise their bank cards and national identification to request amounts ranging from $100 to $1,000. Selected bank branches and exchange offices continue to offer US dollar banknotes at the official exchange rate, although access may be limited due to the ongoing economic crisis.

Individuals seeking to purchase foreign currency must submit their requests through designated systems, reflecting the government’s efforts to regulate the flow of dollars amid a challenging economic landscape.

Impact of Recent Sanctions on Iran’s Economy

The new dollar purchasing guidelines come in the wake of recent sanctions imposed by the United States, targeting 16 individuals and 10 entities associated with Iran. The US Treasury Department has stated that these measures are designed to disrupt Tehran’s alleged international financial networks and shadow banking operations. The sanctions were announced on Thursday, October 19, 2023, as part of a broader strategy to exert economic pressure on Iran.

US Treasury Secretary Scott Bessent remarked that the administration would persist in targeting Iran’s financial resources until they could no longer support the country’s activities. The sanctions are part of a continuing standoff between the US and Iran, with tensions exacerbated by disruptions in the Strait of Hormuz, a critical maritime route for global oil shipments.

In a statement on social media platform X, Bessent emphasised that the economic pressure on Iran is intensifying, asserting that even Iran’s allies would be unable to provide relief. The Treasury Department has committed to ensuring that the Iranian regime’s financial resources are depleted, thereby limiting its capacity to sustain military operations and regional proxy groups.

Operation Economic Outcast Targets Financial Networks

The recent sanctions are part of an initiative known as Operation Economic Outcast, which aims to dismantle Iran’s alleged efforts to infiltrate the international financial system. This includes targeting an Iraqi bank that reportedly supported Iranian-backed militia groups. The US Treasury Department has stated that by dismantling these institutions, it is cutting off vital revenue streams that sustain Iran’s military and proxy forces.

Officials have indicated that the operation focuses on offshore banks and shadow financiers that have facilitated the movement of hundreds of millions of dollars through shell companies and foreign-exchange specialists across the Middle East and Asia. This comprehensive approach seeks to undermine the financial underpinnings of Iran’s military capabilities.

The Iranian economy has been grappling with significant challenges, including a sharp depreciation of its currency. On October 22, 2023, the exchange rate for one US dollar was reported at 262,000 Iranian riyals, a dramatic increase from approximately 135,000 at the beginning of the year. This volatility underscores the urgent need for measures to stabilise the economy and manage foreign currency transactions effectively.

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