How to Purchase Government Currency and Its Conditions

In Iran, for numerous reasons, foreign currencies such as the US dollar and the Euro have two or more exchange rates. This means that you can buy dollars at different prices within the country.

The government, by subsidizing the exchange rates, has tried to regulate the prices of imported goods and control inflation. Regardless of the advantages and disadvantages of this economic policy, a phenomenon known as government currency has emerged. You can purchase a specific amount of dollars or euros at a lower, government-subsidized rate by following certain steps.

Government currencies are offered in various forms, each with its own specific rules, to different groups of applicants. One of the key factors to consider in this regard is the crucial role of currency exchange offices. Essentially, it is not possible to purchase government currency without using the services of these exchange offices.

In this article, we aim to examine how to purchase government currency and the conditions for doing so. Stay with us.

What is Government Currency?

With the sharp increase in the prices of the US dollar and the Euro in recent years, the demand for purchasing these currencies has consistently risen. This is natural because, in unstable economic conditions, investors and ordinary people prefer to use more stable currencies to preserve the value of their assets.

The increase in the prices of the dollar and the Euro has been so significant that many people use this platform for profit and economic investment. All these factors ultimately lead to higher demand and, consequently, even higher prices for the dollar and the Euro.

In a situation where the twelfth government did not have proper control over the rising dollar prices, in 2018 (1397 in the Iranian calendar), a decree was passed to create a government currency known as NIMA currency. NIMA currencies were initially designed at lower rates for importing essential goods. However, due to numerous objections to this plan, government currencies were no longer exclusively NIMA and were divided into several different categories.

Today, government currencies are essentially preferential currencies that the government uses in economic transactions to import essential goods. Naturally, the amount of these currencies available within the country is limited, and it is not feasible to generalize their use.

According to legal regulations, each individual can only apply for a specific amount of government currencies in various forms within a 365-day period.

The Difference Between NIMAEI Currency and Government Currency

NIMA currency is a type of government currency specifically for traders, merchants, manufacturing companies, and governmental units. Generally, ordinary people cannot register for and receive NIMA currency. To obtain NIMA currency, one must register their request in the NIMA system, provide the required details, and wait for the exchange rate to be determined. Obtaining this currency has special conditions that not everyone meets.

The government primarily designed NIMA currency for large-scale import and export of essential goods by commercial and trading entities and for controlling inflation.

The most important difference between NIMA currency and regular government currency lies in the range of importable goods. The scope of NIMA currency imports is much more limited and is restricted to goods considered essential by the government. On the other hand, the volume limit for obtaining NIMA currency is much higher than that for general government currencies.

Regular government currencies, however, are primarily intended to facilitate the everyday life of ordinary people and to help reduce costs for lower-income groups. The range of goods and services that can be purchased with regular government currency is broader than that of NIMA currency, and ordinary people can use their national ID cards to receive a specific annual amount.

There is no need to register in the NIMA system to obtain regular government currency.

Who Is Eligible for Government Currency?

Government currencies of any kind are primarily designed to provide essential goods or help reduce the costs of necessary matters. The Central Bank, based on the country’s official laws and regulations, generally offers government currencies (NIMA or non-NIMA) to individuals who meet the following conditions:

• Import of essential goods by governmental entities
• Import of certain essential goods by private commercial companies
• Provision of agricultural products
• Provision of currency from the export of oil, gas, and petrochemical products
• Covering the costs of students who have emigrated for education
• Paying for registration in official offices in foreign countries
• Paying for registration in scientific, educational, and exhibition centers abroad
• Covering travel and medical expenses
• Providing travel government currencies for individuals who intend to travel abroad

If you meet any of the above conditions, you can receive one of the types of government currencies.

How to Register for Government Currency with a National ID Card

Although there are several methods to purchase government currency, the direct method is to buy it in person using a national ID card. You only need a smart national ID card and an active SIM card registered in your name. Then you can complete the necessary administrative steps to receive your government currency quota.

To obtain government currency in person, you need to follow these steps:

1. First, find a reputable exchange office that provides government currency services.
2. Install the official Iva app on your phone and open a currency account through it.
3. After opening the account, visit one of the currency branches of the designated bank and obtain your IBAN (International Bank Account Number) for the currency account.
4. Then, return to the exchange office and deposit the equivalent amount of the government currency you wish to receive (the daily rate for government currency is also announced).
5. You will also need to deposit 5% of the total requested amount in local currency (Rials).
6. After depositing the money into the exchange office’s account, your government currency will be transferred to the currency account you opened within one to a few business days.
7. After a few days, you can visit the currency branches of Bank Melli (or other banks that provide government currency) to physically collect your government currency.

Conditions for Registering for Dollar Government Currency with a National ID Card

To obtain government currency using your national ID card, you must meet certain requirements. Note that these conditions may change annually. The conditions outlined below are those announced by the government for the year 1403 (2024):

• Applicants must be at least 18 years old.
• Individuals can only use the opportunity to receive government currency once within a 365-day period.
• If you do not receive government currency within a year, your entitlement will expire, and the same amount will be allocated for the following year (your government currency entitlement does not accumulate year by year).
• If you do not use the entire quota of government currency available to you in your annual allocation (i.e., if you do not receive your full quota), you will not be able to purchase government currency again that year and will need to wait until the following year for the next opportunity.
• An active SIM card registered in the name of the purchaser is required.
• The government currency deposited into your currency account will be fully blocked for 6 days, and you will not be able to withdraw it during this period.
• After opening the currency account, the government will block $100 in the account for 6 months, and this amount will not be accessible for withdrawal during that time.

Required Documents for Receiving Government Currency with a National ID Card

When you want to purchase government dollars in person using your national ID card, you must have the following documents with you:

• Original and copy of your smart national ID card
• An active SIM card registered in your name (for receiving confirmation SMS)
• An active bank card in the customer’s name
• A currency account

Please note that different types of government currencies may require additional or different documents.

Registering for Government Currency with the Bale App

In addition to in-person registration, you can now register online to receive government dollars. Simply use the features available in the “Bale” app.

Bale is a banking messenger and, in fact, the social network of Bank Melli Iran. Not only can you use this app for chatting with friends, but it also provides the option to register for government currency. Just visit the Bale website, download and install the Android version of the app, or if you’re an iOS user, use the web application. To register for government currency via Bale, follow these steps:

1. Open the app and select the “National Exchange” menu.
2. Click (or tap) on “Currency Appointment.”
3. Thoroughly read the terms and conditions, and after agreeing, proceed to the next step.
4. Enter your national ID number.
5. Enter your date of birth (the app will connect to the Civil Registration System to verify your information).
6. After your identity documents are verified, specify the type of currency.
7. Enter the desired amount and wait for the app’s confirmation.
8. After confirmation, choose a branch of Bank Melli.
9. After making the payment and waiting for the required period, you can visit the bank to collect your currency in cash.

Important Note: Ensure you perform this operation only at 4 PM each day.

Note: The advantage of using Bale is that it eliminates the need for in-person visits to exchange offices and bank branches for opening a currency account, significantly speeding up the process. However, other regulations remain unchanged, including the 5% service fee and the initial $100 block.

How to Pay for Government Currency

After completing the registration and application process, the government currency will be deposited into your account. Note that this currency account must be opened at a bank approved by the Central Bank and must remain active for at least 6 months after the deposit.

Please be aware that to deposit money into the currency account, you must maintain a minimum balance of $100. This advance amount will remain in your account for up to 6 months (the minimum period required to keep the account active). If you deplete this amount after 6 months, your currency account will be closed, and you will need to reapply for account opening in the next allocation period (the following year).

What is the Price of Government Currency?

Please note that everyday transactions in the country are conducted based on free market exchange rates. Inflation is aligned with the free exchange rate, and the prices of many non-essential goods are also calculated using this currency. However, if government dollars were not available, inflation would be significantly higher than it is now.

The government keeps the cost of importing essential goods low by offering cheaper government currencies to prevent additional inflationary pressure on the public. However, having a dual exchange rate system is a temporary measure with several drawbacks, such as enabling brokers to exploit the situation for profit and increasing the demand, which in turn drives up the price of free market dollars.

Government currencies are generally cheaper than free market currencies. The rate you see on exchange office boards represents the free market rate (the actual price), but the government dollars or euros you receive are typically sold at a lower rate. Additionally, there may be slight differences in rates among various types of government currencies, such as NIMA, student, travel, etc.

The price difference between government and free market currencies is always fluctuating and does not have a fixed margin. In other words, just like the daily price of free market dollars, the price of government dollars (or any other government currency) is announced daily. Depending on the circumstances, this price difference may increase or decrease.

Generally, government currencies are usually about 20% cheaper than free market currencies. Considering the 5% service fee and the requirement to keep $100 in your account, the actual price difference amounts to approximately 12%.

How Much Government Currency Can We Obtain in a Year?

Government currencies (such as travel, student, etc.) are available in limited quantities. Each eligible Iranian citizen can purchase government currency once every 365 days by presenting their national ID card. The maximum amount the Central Bank provides per person is equivalent to 2,000 euros or 2,100 dollars. Considering the $100 that must be kept in your account, you can generally receive up to $2,000 in government currency annually.

Please note that if you receive less than this amount during your allocation period, your annual entitlement will be forfeited, and you will not be able to use the remaining balance within the same year. For example, if you have a Rial balance equivalent to $500 and use it to purchase government currency, even though you will have $1,500 in remaining credit, you will not be able to use it within that year. Therefore, any amount you receive is a one-time allocation for the year and will be recalculated the following year!

Additionally, the $100 held in your currency account will be released after 6 months, and you will be able to withdraw it. However, if you do so, your account will be closed, and in the next allocation period, you will need to block another $100 in your account for 6 months.

Types of Government Currency

There are various types of government currency, including:

• Government Currency
• Travel Currency
• Pilgrimage Travel Currency
• Student Currency
• NIMA Currency

Below, we will explain each of these types in detail:

Travel Currency

One of the most common and well-known types of government currency is travel currency, which the Central Bank provides to Iranian citizens who intend to travel abroad. This currency is cheaper than the free-market dollar, and each person can receive it once a year by presenting their national ID card.

In the past, the maximum annual amount of travel currency you could receive was 500 euros, but since late 2023, this amount has increased to a maximum of 1000 euros. You can apply for travel currency through one of the foreign exchange branches or the ice.ir portal.

To receive travel currency, you need to provide the following documents:

• Original and a copy of a passport with at least 6 months of validity remaining
• Original visa for the destination country (if required)
• Original and a copy of the national ID card
• Original and a copy of a stamped travel ticket (provide a valid ticket tracking code if purchased online)
• Completed travel currency request form
• Payment of the equivalent in Rials for the requested travel currency and settlement of necessary fees
• Original receipt of the departure tax payment
• An active mobile number registered in the applicant’s name

Please note the following conditions for receiving travel currency:

• The applicant must be over 12 years old
• Individuals with service or diplomatic passports cannot receive this currency
• Individuals departing from airports other than Imam Khomeini, Shiraz, Isfahan, Tabriz, Urmia, and Ahvaz cannot receive travel currency
• Applicants should not have received travel currency in the past 365 days

Currency fluctuations are usually significant, and waiting for the exchange rate to change to increase profit margins may not always be in your favor. This is especially important during peak travel times.

Generally, the best time to buy travel currency is at most 10 days to a week before your trip. If you delay this too much, you may not get your turn, and you might not receive your currency before your trip starts.

Pilgrimage Currency

Individuals intending to travel for pilgrimage to Hajj in Saudi Arabia or to Karbala in Iraq can use a special type of government currency known as pilgrimage currency. According to the laws of 2024, each Iranian citizen can receive up to $500 in pilgrimage currency for Hajj once a year.

Those wishing to travel to Karbala can receive up to 200,000 Iraqi dinars in pilgrimage currency each year. To apply for pilgrimage currency, simply visit the Samah portal and complete the registration process.

Student Currency

One of the groups for which the government provides special currency is migrant students. Those planning to study abroad have a specific quota of government currency and can obtain dollars or euros at a lower rate. However, they must meet certain conditions, such as having their foreign university approved by the Ministry of Science, possessing a valid language certificate, and maintaining a minimum university GPA.

It is important to note that students who receive scholarships are not eligible to use government currency.

Nimaei Currency

Nimaei currency is primarily designed to facilitate imports and reduce the cost of essential goods. Only traders and private or state-owned companies engaged in import and export activities are eligible to use this type of currency.

Which Banks Provide Government Currency?

There are not many banks within the country that offer government currency. In addition to Bank Melli, which is the primary financial institution for distributing government currency, Bank Mellat and Bank Saman also provide these currencies. If you are looking to obtain travel currency, you can also use the services of Bank Tejarat and Bank Parsian.

The Central Bank announces the government currency rates to banks from Saturday to Wednesday between 9:30 AM and 12:30 PM, and on Thursdays until 11:30 AM. In addition to banks, you should also use the services of authorized exchange offices to obtain government currencies.

The Best Exchange Office for Buying Government Currency

Please note that not all exchange offices provide government currency. Only some of them offer such services. Hafez Exchange is one of the most reputable financial and economic institutions in Iran. In addition to offering a variety of services such as issuing and sending remittances, foreign currency exchange, tuition payments, and cryptocurrency trading, it also operates in the field of providing government currency.

Summary

Government currencies are essentially a cheaper, secondary exchange rate provided by the government for foreign exchange transactions. Initially introduced to facilitate and reduce the cost of importing essential goods, these currencies have, for various reasons, also been made available to the general public in different ways. Today, any Iranian citizen can obtain government currency once a year by presenting their national ID card.

Although acquiring these currencies often requires an in-person visit, opening a foreign currency account, and collaborating with an exchange office, it can also be done online. Government currencies are generally about 12% cheaper than free-market currencies. In addition to helping reduce travel costs, import expenses, and student tuition fees, they can also offer a platform for trading and earning a small profit.

In this article, we have aimed to provide a comprehensive discussion on government currencies, including registration methods, acquisition processes, and their various types. We hope this information has been helpful to you.