Ambiguities and attractiveness of currency bonds

According to this announcement, natural persons over 18 years of age can buy these bonds by visiting the foreign exchange branches of National Bank from Saturday, November 28, 1401. With these three-month bonds with a maturity date of 25th of February 1401, one can buy the equivalent of at least 1000 Rials and at most 4000 dollars. The central bank has announced the calculation basis for determining the Rial amount of these bonds at the time of issuance, redemption and maturity of the bonds “the closing rate of the previous day’s agreed dollar symbol of the market notes consisting of foreign exchange transactions”. We will explain about the agreed dollar below.
Another condition of currency bonds announced by the Central Bank is that these bonds are named and at the same time tax-free, and only natural persons over 18 years of age can buy them. These bonds will be issued in the form of Rials equivalent to 100 dollars. Therefore, 10 sheets of certificates are needed to buy the declared floor, i.e. 1000 dollars, and 40 sheets of certificates are needed for the declared ceiling. The Central Bank has emphasized that these bonds cannot be used for secondary transactions and transfer to others, and they must be presented to the Central Bank branches either at maturity or earlier. Also, it will be possible to physically deliver the dollar bill at maturity by paying the central bank bill attorney’s fee.

What are the ambiguities and attractions of foreign currency bonds / the details of issuing currency certificate bonds?

What is the agreement dollar and how much should be spent to buy bonds?
It is worth mentioning that since June of this year, the central bank has allowed exchange offices to buy currency notes from issuers at an agreed rate and sell them to qualified applicants with a profit of 1%. The agreed dollar rate is a figure between the dollar at the national exchange rate (before that) and the free market dollar rate. Even now, according to the information of Iran’s foreign exchange market system, the agreed dollar rate is about 33 thousand 295 tomans, while in the market, until yesterday afternoon, the dollar rate reached about 35 thousand 800 tomans. Based on this and taking into account the agreed dollar rate until yesterday, it can be said that to buy these bonds, a minimum of 33 million and 295 thousand tomans and a maximum of 133 million and 180 thousand tomans should be considered.
What are the attractions and uncertainties of currency bonds for buyers?
It should be noted that unlike bonds such as stock insurance where the government guarantees to redeem the asset at a certain interest rate at maturity, this is not the case with foreign currency bonds. This means that if the exchange rate decreases to less than these days, the risk of this decrease lies with the bond buyer. Although these bonds can be redeemed by the bank.
However, the question arises, what attractions can be imagined for these papers? To answer this question, it should be said that these bonds are actually considered as a channel of legal buying and selling of currency in contrast to illegal buying and selling in the open market. In the free market, there is a possibility of judicial and legal follow-up whenever the legislator or regulatory bodies decide, however, here, the buying and selling of currency through the paper route is recognized. In addition to the fact that in the space of free market speculation, there is the possibility of tax encounters and obtaining taxes from incidental incomes resulting from the difference in exchange rates at the time of purchase and sale, but it is specified that these bonds are exempt from taxes. Also, normally, keeping $1,000 to $4,000 in bills will have its own difficulties and risks, while keeping bonds is not difficult and brings more security to currency buyers.
Despite this, only one ambiguous point remains, which can be resolved with the necessary guarantees from the central bank, and that is that the agreed dollar rate should be the result of natural interactions in this market and far from interventions that create artificial rates in the market. It creates a currency market. An issue which, of course, was observed in the distant years in the form of what is called currency manipulation today.

Khorasan