Iran may limit imports to support domestic production

Business Materials 22 September 2012 13:59 (UTC +04:00)

Azerbaijan, Baku, Sep.22/ Trend F.Milad/

Iran may limit imports of some specific goods, which are also domestically manufactured, in a bid to prop up domestic producers, director of the Trade Promotion Organization of Iran said.

Kiyumars Fathollah Kermanshahi told the Mehr news agency that the domestic production will be supported as much as possible observing the market situation.

The Central Bank of Iran has recently ordered all the branches to pay official rate dollar (12,260 rials) to importers just for importing a certain group of goods.

The goods include red and white meat, livestock, corn, barley, soy bean, edible oil, sugar, and milk powder, Mehr news agency reported.

The Central Bank has categorized the goods, which are to be imported, into ten overall groups, based on which official rate dollar is only allocated to the importers of the first priority category.

Importers of other goods are paid dollar at higher rates.

Iran's Central Bank allowed trading in its currency at market levels after fixing the exchange rate in January as the threat of sanctions over the country's nuclear program and economic risks spurred Iranians to buy up dollars.

The bank on January 26 fixed the rate at 12,260 after the U.S. dollar surged to almost double that level in unofficial currency markets.