Central Bank of Iran mandates blue $100 bills for foreign currency funds

The Central Bank of Iran has issued a new directive regarding the quality of foreign currency banknotes used in transactions between investors and fixed-income foreign currency investment funds. According to the announcement, the receipt and payment of $100 banknotes for the issuance and redemption of fund units are permitted only using ‘blue’ $100 bills.

Currently, two foreign currency investment funds have received licenses to operate from the Central Bank and the Stock Exchange, with a third fund having received principle approval. Eight banks have reportedly submitted requests to establish similar investment funds. These funds allow both individuals and legal entities to invest via US dollar banknotes or foreign currency transfers. The minimum investment is set at 10 units ($100), with a maximum of 50,000 units ($500,000) per person.