Iran spends less foreign currency on car manufacturing
BAKU, Azerbaijan, May 30
By Elnur Baghishov – Trend:
Amount of foreign currency spent on the manufacturing of one car in Iran decreased to an average of $1,600-$1,700, Secretary of Iran Auto Parts Manufacturers Association (IAPMA) Maziar Beiglou said, Trend reports citing IRNA.
However, according to Beiglou, this figure was more than $2,000 by the end of last Iranian year (March 20, 2020).
The secretary added that domestic manufacturing of spare parts apparently leads to a reduction in the currency spent on car production.
"About $2 billion is necessary to achieve the goal of producing 1.2 million cars a year," he said adding that this task set by the Ministry of Industry, Mine and Trade to produce this number of cars can be fulfilled if the planned foreign exchange is provided and the necessary spare parts are imported on time.
Beiglou noted that the price of foreign currency in the contracts signed between car manufacturers and spare parts manufacturers in Iran does not correspond to the market one. The contracts are still signed on the basis that 1 dollar costs 110,000 rials.
"Failure to change prices will result in losses for car parts manufacturers," he said.
The exchange rate announced by the Central Bank of Iran to banks and exchange offices is called the SANA system. According to SANA, 1 euro equals to 168,646 rials, $1 equals to 152,818 rials.
In Iran, the price of 1 dollar on the black market varies between 170,000-173,000 rials, and the price of 1 euro varies between 184,000-187,000 rials.