TEHRAN, Iran, Dec.9
Trend:
Head of a division of Iran's Ministry of Industry, Mining and Trade (MIMT) Southern Khorasan province announced the possibility of canceling the foreign currency liability for exporters to Iraq and Afghanistan.
“The entrepreneurs who exported to Afghanistan and Iraq from cross-border markets in the period from April 2018 through July 2018, must submit their export declaration into the Comprehensive Trade System by December 13,” Davoud Shahraki said, Trend reports citing ILNA.
“The central bank shall cancel their foreign currency liability, after confirming the authenticity of the declaration,” the official added.
Iran’s new currency policy was developed in April 2018, in the aftermath of a devaluation crisis and anticipation of the re-imposition of U.S. secondary sanctions.
Subsequent sanctions and particularly the restrictions on Iran’s oil exports added further pressure to Iran’s currency markets.
Iranian policymakers responded to these pressures and the fast-rising cost of imported goods with a policy to intervene into Iran’s multiple exchange rates and allow allocating foreign currencies to importers of essential goods at the official rate of 42,000 reals per dollar, which is far lower than the current “open market” rate of around 120,000 rials for one dollar.
The government operates a third rate - the NIMA system, which also introduced by the Central Bank of Iran in April 2018. It is intended for the sale of a certain percentage of the foreign currency gained from export.