Iran predicts improvement in foreign trade

Business Materials 26 March 2019 09:46 (UTC +04:00)

Tehran, Iran, March 23


It is expected that Iran’s foreign trade in the new Iranian year (started March 21, 2019) will have better conditions than last year and the country’s economy will rely on domestic production and non-oil exports, said head of Iran’s Export Confederation Mohammad Lahoti.

"It is predicted that as a result of the reforms, the conditions for foreign trade in new Iranian year will be better than last year (started March 21, 2018). However, the situation depends on a series of external issues, including passing the Financial Action Task Force (FATF)-related bills, which will affect the economy," he said, Trend reports citing Fars News Agency.

Referring to creation of special financial channel by Europe to facilitate transactions with Iran, he said that if Iran manages to use the channel for foreign trade, it will neutralize part of unilateral sanctions. "But FATF-related bills can create obstacles and have negative effect."

"The government should review the foreign exchange rate policies, despite the fact that there have been reforms in foreign trade policy," Lahoti added.

He went on to add that the last Iranian year (started March 21,2018), was one of the hardest economic years in the country and unfortunately, around 50 new regulations were adopted on foreign exchange rate, exports and imports, while the official foreign exchange rate of 42,000 rial per dollar caused waste of national resources.

"The hasty decisions have affected the country's imports and exports and lack of consistency in regulations and raw material shortage caused the closure of production units while the foreign trade dropped by 97 percent," he added.