From Barter to an "Offshore Rial": Iran Seeks to Formalize Rial Afghani Trade Settlement (Saturday, July 4, 2026)

Seyed Hossein Salimi, chairman of the Iran Afghanistan Joint Chamber of Commerce, has said Iran's main goal in trade with Afghanistan is to convert the traditional barter model between the rial and the afghani (Afghanistan's currency) into a formal banking and financial platform, reducing dependence on third currencies and easing trade flows. According to him, the repatriation of export earnings is a serious challenge for Iranian exporters active in the Afghan market, since bilateral trade has long been conducted mainly in rials. At the same time, Iran's central bank has in recent months introduced a tool called the "offshore rial" (ریال برون‌مرزی) to help settle exports to Afghanistan and Iraq.

Background

Trade between Iran and Afghanistan has for years operated under the shadow of international banking restrictions and the absence of formal correspondent banking ties between the two countries' banks. Without a standard banking channel, a large share of transactions has been settled through border barter or via exchange houses and third currencies. The trade balance also runs heavily in Iran's favor: according to the Afghan caretaker (Taliban) administration's announcement in November 2024, Afghanistan exported only about $30 million worth of goods to Iran in that period, while its imports from Iran reached roughly $1.8 billion. This imbalance means Afghanistan effectively lacks enough reciprocal export currency to pay for its imports from Iran, a condition that has made rial settlement and barter the dominant practice in practice.

The Iran Afghanistan Joint Chamber of Commerce was established following an agreement announced by Iran's then ambassador to Kabul in October 2023, with a Kabul office and a branch in Herat envisioned. Salimi has separately described non‑financial obstacles to bilateral trade, saying that during periods when the internet was down, Iranian and Afghan traders had to travel in person to the zero point on the border to coordinate with their counterparts (as reported by Sarpoosh, February 2026).

Key figures

The trade balance figures are quoted from the Afghan caretaker administration's official announcement in November 2024; no newer figures were found in available sources. Tracking fresh announcements from both sides is needed for the latest picture.

Drivers

Salimi says the difficulty of repatriating export earnings has exposed Iranian exporters active in the Afghan market to added risk and cost, prompting Iran to seek a formal banking platform to replace informal mechanisms. According to domestic economic reports, the central bank has deployed the "offshore rial" tool, alongside easier border barter procedures, to ease this pressure, an approach these reports describe as part of the central bank's broader push to untangle rial‑denominated exports under sanctions. Separately, Iran's Government-Private Sector Dialogue Council postponed the phased rollout of a higher forex repatriation requirement for exporters (from 60 to 90 percent), originally due to start in February/March 2026, to May/June 2026, to support small and medium exporters active in the Afghan market and Iraqi Kurdistan.

Outlook

If a formal banking platform for rial afghani settlement takes shape, it could reduce some of the exchange‑rate risk and exchange‑house intermediary costs in border trade with Afghanistan and offer a more transparent settlement path for small and medium exporters. However, the absence of standard correspondent banking ties between the two countries and constraints from international sanctions remain the main obstacles to fully formalizing this mechanism. This is a reading of officials' statements and published reports, not a definitive Sahmino forecast.

What to watch

In the coming weeks and months, watch for any official central bank circular detailing the operational specifics of the offshore rial, fresh statements from the Iran Afghanistan Joint Chamber on a timeline for the banking platform, and updated trade balance figures between the two countries.

Disclaimer

This report is for informational and educational purposes only and does not constitute investment advice. All figures carry a specific as‑of date and may have changed since; verify information against official, up‑to‑date sources before making any decisions.