Iranian authorities have announced a ban on the import of 1 339 commodities categorized as “non-essential goods with domestic counterparts”. The list of prohibited imports includes home appliances, textile products, footwear and leather products, as well as furniture, healthcare products and some machinery.

According to Iran’s authorities, these are goods that can be produced domestically so as to reduce the currency spent on foreign goods. As per an official letter by the Minister of Industries, Mining and Trade Mohammad Shariatmadari to Chairman of Trade Promotion Organization of Iran Mojtaba Khosrotaj, orders already registered for the import of these commodities are no longer valid.

This ban is being put into place in order to protect the country’s currency, the rial, from the effects of the latest US sanctions. Indeed, President Donald Trump has announced further ones that will accompany US’s decision to withdraw from the nuclear deal.

Meanwhile, Iran’s currency is reaching record lows. Indeed, the rial, which traded at 42,890 to the US Dollar at the end of 2017, has fallen to around 90,000.

On the one hand, this is causing capital flight, with Iranians transferring their savings from the rial to US dollars and investing in non-cash assets. This has driven up Tehran’s estate and gold prices and Iran’s stock market has jumped 17% since the end of May to a record high. On the other hand, merchants are protesting against the increased cost of imports. Demonstrations have already taken place both in front of the parliament in Tehran and in the Grand Bazaar.