Currency remittance is one of the types of remittances that can be important and applicable in various fields, including trade and commerce. In simple terms, this type of remittance refers to the processes of transfer and deposit of foreign currency into bank accounts.
A foreign currency remittance is one of the challenging tasks that we handle at Gezdarazi Trading Group without the slightest concern for you. Just entrust everything to us.
Since 2018, the Iranian government, in response to the imposed sanctions on the country to prevent the outflow of foreign currency and control it, launched the Nima system. Through this system, exporters and importers can engage in buying and selling foreign currency.
Importers are required to use Nima remittances for their goods' imports into Iran, based on their priority and the category of goods they deal with. Only approved exchange offices by the Central Bank are allowed to perform such transactions in the Nima system. Otherwise, no importer can independently take currency out of the country. They must obtain necessary permits from the Central Bank and the Ministry of Industry, Mine, and Trade (for import registration) and then register their request in the Nima system to pay their foreign currency to their foreign sellers through authorized exchange offices outside Iran. This way, the exporter channels their foreign currency through the Nima system and authorized exchange offices for sale.
In general, foreign currency remittances in imports and exports consist of two types:
- Nima currency
- Government currency.
Government currency is usually allocated for essential goods, while Nima currency includes all other goods that do not fall under the category of government currency. Essential goods are primarily related to household and public consumption, requiring more attention, and it is essential for them to have more suitable subsidized prices. The main difference between Nima currency and government currency lies in their exchange rates.
Steps to Receive Nima Currency
Importers, in order to utilize Nima currency for their goods, need to go through the following steps:
(In this phase, necessary commitments and documents must be presented to the agent bank).
- Initially, the person intending to obtain Nima currency must register their order in the NTSW system as an importer.
- Then, they should approach the agent bank to declare their required amount of currency for procurement.
- In the third step, considering the registered order, the central bank allocates the necessary currency. (It is important to note that this allocation process by the central bank may take approximately one month.)
- Following that, the importer registers their currency request in the Comprehensive Trade System (CTS).
- Valid exchange offices listed in this system are then reviewed for their selling proposals.
- The best proposed exchange rate is approved.
- Subsequently, the Rial amount must be deposited into the exchange office's account.
- The currency is then paid to the foreign seller's account by the exchange office.
- The payment instrument is registered by the bank.
- Documents related to the purchase of goods and transportation are presented to the bank.
- The origin of the currency is registered by the importer.
- Customs clearance procedures for the goods are carried out in this section.
- The currency declaration is issued by the agent bank.
As you can see, this process involves numerous complex steps that require utmost precision and expertise. At Gezdarazi Trading Group, we will handle your Nima currency remittance through legal channels and in a short timeframe.
Uses of Foreign Currency Remittances
Traders, merchants, and individuals active in financial transactions utilize foreign currency remittances. This matter is entirely clear and evident, but it is crucial to understand the defined applications for these foreign currency remittances that different individuals prefer to use. The most important uses of foreign currency remittances include the following:
High Transfer Speed
One of the most significant advantages of foreign currency remittances is their high transfer speed. With direct methods, you can transfer funds to the other party within a few hours. Therefore, this method finds extensive applications due to its swift transaction capabilities, allowing deals to be concluded more quickly.
The high level of security offered by this transfer method ensures that you can transfer your funds and assets in the best possible manner. Remember, the high security aspect is crucial and should not be overlooked.
Many individuals need to move large sums of money at once during their transactions. This is often not feasible through regular means, requiring specialized methods like purchasing foreign currency remittances. Hence, for those involved in hefty transactions, these remittances serve as a suitable option.
Another benefit of foreign currency remittances is their international applicability. By using them, you can easily move currencies and funds across different countries and conduct your transactions. This spares you the hassles of dealing with banks, wasting time, and other inconveniences.
Types of Foreign Currency Remittances
Foreign currency remittances can be classified into two categories: outgoing foreign currency remittance and incoming foreign currency remittance. Each type of remittance has specific applications, which we will explain below.
Outgoing Foreign Currency Remittance
Outgoing foreign currency remittances are used when we intend to send currency to another individual. This transfer of currency can be done through banks, financial institutions, or exchange offices. When using outgoing remittances, you must also fill out a customs declaration form if you plan to use the remitted currency. This form enables you to avoid involvement in money laundering issues and its consequences.
To utilize outgoing foreign currency remittances, you must have the recipient's name, details, address, and the type of currency, etc., to enable the smooth transfer of currency to the recipient.
Incoming Foreign Currency Remittance
The second type of foreign currency remittance pertains to incoming foreign currency remittances. Incoming foreign currency remittances occur when another person intends to send currency to you. The process of handling incoming remittances is exactly the same as with outgoing remittances, except in this case, you are the recipient. Completing several forms required by banks, financial institutions, and exchange offices can be crucial for you. Therefore, it is advisable to go through all the steps carefully to ensure the best outcome.
In this article, we have thoroughly discussed the different types of foreign currency remittances. Our expertise lies in the field of trade facilitation, where we accompany you through the twists and turns of commerce, assisting you in purchasing goods and importing them.
If you require foreign currency remittances from the central bank and need to determine your currency origin, we can help. If you have any further questions on this matter, feel free to get in touch with our experts at Gezderazi Trading Company, and they will promptly respond to your inquiries.