How do Iranians move money abroad to avoid US sanctions?
From currency brokers to crypto, Iranians find ways to circumvent sanctions, but each comes with its own problems.
Key points
- Iranians use currency exchanger networks, intermediary firms, private trust deals and cryptocurrency to move money abroad.
- US sanctions on major Iranian crypto exchanges and internet disruptions make digital assets an uncertain option.
- The rial has lost over 55 percent against the dollar in the past year, eroding purchasing power.
Decades of international sanctions have severely limited Iran's access to the global financial system, making cross-border payments difficult for individuals and businesses. The current US-Israeli war on Iran has only increased these restrictions.
Unable to rely on conventional banking, many Iranians have turned to alternative channels to pay for goods and services abroad. Each workaround carries its own costs and risks, often falling short of the security and reliability of a functioning international banking system.
Informal payment methods
One alternative is networks of currency exchangers that operate across borders, matching those who need local currency in Iran with those who need foreign currency abroad. Intermediary firms offer similar services: a customer pays in local currency in Iran while the firm or an overseas partner arranges payment to the foreign supplier in a convertible currency using funds held abroad. These methods can bridge gaps but often involve additional fees, exchange-rate costs, delays and greater complexity.
Other Iranians use private arrangements with individuals, including strangers, to transfer money across borders. Such deals rely heavily on trust rather than enforceable guarantees. "The transaction involves strangers having to trust one another to conduct a deal without any legal documentation or proof," said Reza, an Iranian IT manager in Germany who did not wish to give his full name. "It relies entirely on trust, and either party can back out at any time, leaving the others out of pocket."
The transaction involves strangers having to trust one another to conduct a deal without any legal documentation or proof
— Reza, an Iranian IT manager in Germany
Crypto and trade disruptions
Cryptocurrency has offered another route, enabling users to transfer wealth without conventional banks. But even these digital assets have not provided a fully reliable escape from sanctions. Earlier this year, the US Treasury Department's Office of Foreign Assets Control sanctioned several major Iranian cryptocurrency exchanges, including Nobitex, Wallex, Bitpin and Ramzinex. Alireza Yaghoubi, chairman of Iran's FinTech Association board, warned that crypto transactions are traceable, "and very bad things can happen, such as the sanctions imposed on multiple Iranian wallets, whether they belonged to individuals, the Central Bank, or other entities". The possibility of sanctions, combined with periodic internet disruptions, makes cryptocurrency an uncertain option.
For businesses importing physical goods, war-related disruptions and restrictions, particularly after the US naval blockade on Iran, have complicated transportation and lengthened delivery times. Arghavan Ghazanfari, CEO of Aron Trading Group, described the scale of disruption facing importers using the port of Shanghai in China. "Transit time used to be 26 days. But when it stretches nowadays to 102 or even 120 days, customers are bound to reconsider importing," Ghazanfari said. "Unfortunately, the main problem now is that our supply routes are gradually being cut off."
