Different foreign currency exchange rates cause major problems for Iranian export

Finance Materials 23 April 2019 12:06 (UTC +04:00)

Baku, Azerbaijan, April 23

By Elnur Baghishov – Trend:

The main challenge faced by Iran in the field of exports is that there are several rates for exchanging foreign currency, Mohammad Reza Modudi, Head of Iran's Trade Promotion Organization (TPO), told reporters on the sidelines of the meeting of Iran’s Strategic Council for the Development of Non-Oil Exports, Trend reports referring to the Young Journalists Club of Iran (YJC).

According to Modudi, other problems include the rules applied to the return of the currency earned from exports to economic turnover and the lack of comprehensive support for the export operations.

In his words, TPO is currently trying to overcome the obstacles standing in the way of expanding Iran's non-oil exports.

"While the Central Bank of Iran is not against the development of production and export of the non-oil products, it is worried that decisions regarding foreign currency may have negative impact on the inflation rate or the country's economy," he said.

Currently, there are four different rates used in Iran for exchanging foreign currency. According to the official exchange rate used for the import of some essential products, the price of $1 currently stands at 42,000 rials.

The SANA system, which is a system assigned by the Central Bank of Iran to the currency exchange offices, sets the price of $1 at 136,000 rials. As per NIMA, a system intended for the sale of a certain percentage of the foreign currency gained from the sale non-essential goods and export, the price of $1 is 95,000 rials.

In the black market, $1 is worth about 135,000-140,000 rials.