Currency Exchange

Currency Exchange

Introduction

One of the most important—and sometimes confusing—topics for newcomers from Iran is how to exchange currency and transfer money after immigration.
This guide explains what you need to know about handling your finances safely and efficiently when arriving in Saskatoon.

Important Context: Iran–Canada Banking Relations

Currently, Iran has no official banking relationship with Canada. This means:

• You cannot wire money directly from an Iranian bank to a Canadian bank.
• You cannot use Iranian debit or credit cards in Canada.
• Regular global financial services such as PayPal, Western Union, or bank-to-bank SWIFT transfers do not work directly between Iran and Canada.

As a result, Iranians in Canada use alternative methods for currency exchange and money transfer.

Common Methods for Transferring Money

• Community Exchange:

  • Trusted individuals within the Iranian community exchange money. You pay them in Iran, and they pay you in Canada (or vice versa).
  • This method is based entirely on trust. Only use known and reputable individuals or sources recommended by community members.

• Currency Exchange Offices:

  • Specialized offices transfer money between Iran and Canada through unofficial channels.
  • These offices often offer better security, standard procedures, and slightly higher fees.
  • In Saskatoon, Shiva Exchange is a well-known option (see our Business Directory).

How Currency Exchange Typically Works

1. Contact a trusted person or currency exchange office.
2. Agree on the exchange rate (rates change daily).
3. Transfer money to the agent’s account in Iran.
4. Receive the equivalent amount in Canada—either as cash or by Interac e-Transfer to your Canadian bank account.

Always confirm:

• The total amount you’ll receive after fees.
• The timing of the transfer (some are instant, others take 1–2 business days).
• The recipient account details if using direct deposit.

Important Notes

• Currency exchange transfers are not considered taxable income in Canada. You do not need to declare them on your tax return.
• Canada enforces strict anti-money laundering rules. If you receive a transfer of $10,000 CAD or more, your bank will ask for documentation (such as proof of a car or property sale in Iran).
• Some exchange offices provide a basic receipt for your records.

Important Cautions

• Only use trusted individuals or registered currency exchange offices. Fraud can happen with unknown or unverified sources.
• Always confirm all details in writing (e.g., by text, Telegram, or WhatsApp) to avoid misunderstandings.
• Avoid carrying large amounts of cash. If you carry more than $10,000 CAD per person when entering Canada, you must declare it at customs (CBSA rules).
• Be prepared to show documentation of the source of funds if requested by authorities.

Tips for Managing Money After Arrival

• Open a Canadian bank account as soon as possible to securely manage your funds.
• Use Interac e-Transfer or other digital payment services for safe money movement inside Canada.
• Keep all receipts and records of large transactions for your own security.

Conclusion

Since there are no formal banking ties between Iran and Canada, community trust and reputable currency exchange offices are crucial for money transfer.
Prioritize safety, clarity, and documentation in all transactions.
Whenever possible, plan your finances in advance to get the best rates and avoid last-minute stress.

For recommendations on trusted Currency Exchange Offices in Saskatoon, consult our Business Directory or contact the Saskatoon Iranian Cultural Association.