BAKU, Azerbaijan, Dec. 4
By Elnur Baghishov - Trend:
The funds worth $14 billion are envisaged in the budget for the next Iranian year (from March 21, 2020, through March 21, 2021) in accordance with the official rate ($1 - 42,000 rials) for the import of basic products, Iranian Deputy Minister of Economic Affairs and Finance Mohammad Ali Dehqan Dehnavi said.
“Rice, barley, maize, oil, oil seeds, animal feed, medicines and several other products will be imported in accordance with the official rate set by the Central Bank of Iran,” Dehnavi added, Trend reports referring to Mehr news agency.
The deputy minister added that the government has determined these products as essential for people and decided to keep cheap prices for these products.
"The Iranian government allocated the funds worth $14 billion in the form of subsidies due to the US sanctions imposed on Iran and unfavorable economic situation in the country to help citizens," Dehnavi said.
The deputy minister noted that the import of some products upon the official exchange rate was canceled due to insufficient control.
“Thus, since the beginning of this Iranian year (March 21, 2019), such products as butter, tea and red meat have not been imported upon the official exchange rate,” Dehnavi added.
There are four foreign exchange rates in Iran. First, the exchange rate announced by the Central Bank of Iran is the official exchange rate according to which $1 costs 42,000 rials. In accordance to this rate, funds are spent for the import of the basic products and for special occasions.
Second, the Central Bank of Iran sets the exchange rate for the banks. In accordance with this rate, $1 costs 123,000 rials.
Third, there is NIMA system in Iran. Exporters must sell some revenues obtained from export to the banks in accordance with the rate set by this system in Iran. Presently, $1 costs 110,000 rials through the NIMA system.
Fourth, $1 costs 125,000 rials in Iran’s black market.