Tehran, Iran, July 29
Trend:
The foreign currency rate in Iran will move toward a single rate, if the foreign currency rate in NIMA integrated system continues to effect free market, said the former head of Export Guarantee Fund of Iran.
Seyed Kamal Seyed Ali discussed the possibility of single rate foreign currency in Iran in an interview with Trend.
"Measures taken by the Central Bank of Iran led to fall of foreign currency rate in free market, This indicates that the foreign currency rate at NIMA integrated system is getting closer to free market rate, and it will facilitate the process of equalizing foreign currency rate in one single rate," he noted.
"The difference between two foreign currency rates is due to the exchanging fee for transactions. In my opinion, the official foreign rate should be removed, but the government believes that in this case, vulnerable groups of the population will face more problems," he said referring to the possibility of removing official foreign currency rate of 42,000 rial per dollar.
"I think that the difference between two rates should be compensated for low-income households. At the moment, basic goods are imported at the official currency rate and purchased at low prices by all, but the subsidies should be offered to the poor, " he added.
"The other problem is that currently, the government is providing subsides to everyone and the fuel subsides are also given to everyone. Meanwhile, after removing subsides, cash can be provided to low income and middle classes via increasing salaries through Iran organization of Well Being and Imam Khomeini Relief Foundation," he noted.
"The government would have possibility to increase salaries for these groups, if it sells the basic goods at NIMA foreign currency rate and gains profit. Around $10 to $12 billion worth basic goods were imported at the 42,000 rial foreign currency rate. If the government sells them at the NIMA rate, it can increase the salaries," he said referring to possible ways for raising salaries.
NIMA is a system intended for the sale of a certain percentage of the foreign currency gained from export. The price of 1 euro in this system is 129,816 rials, and the price of $1 is 114,543 rials.