MP: Iran’s budget next year won’t be based on USD/rial official exchange rate

Finance Materials 14 November 2019 13:34 (UTC +04:00)

BAKU, Azerbaijan, Nov. 14

By Elnur Baghishov - Trend:

Iran’s budget for the next year (March 21, 2020 - March 21, 2021) won’t be based on the official exchange rate of the rial against the US dollar (1$=42,000 rials), said Mohammad Hosseini, a member of the Iranian parliament’s committee on planning, budget and calculations, Trend reports referring to the Tasnim news agency.

Hosseini said that the US dollar won’t have two exchange rates (official and black market rate) in the budget next year, adding that it isn’t yet clear what the price of the US dollar will be.

The report on the operation of 381 private companies, banks and enterprises for the last Iranian year (March 21, 2018 - March 21, 2019) and the six months (March 21-September 22) of this Iranian year have been submitted to the parliament by the committee on planning, budget and calculations, the Iranian MP noted.

Hosseini said the report also includes the companies’ functions in next year’s budget.

“In addition, the report reflects the functions of companies related to Iran’s Defense Industry, Ports and Maritime Organization, which incurred losses and gained profit, as well as banks and financial institutions,” the MP noted.

Hosseini said that the companies’ budget increased by 9 percent compared to the previous year and salary increase of 15 percent is expected.

“This year, the companies’ budget is projected at 13.8 quadrillion rials (about $328 billion),” the MP added. “Last year, this figure was projected at 12.4 quadrillion rials (about $295 billion).”

Several foreign exchange rates are used in Iran.

In Iran, the official exchange rate is used for import of some essential products.

SANA system is a system introduced by the Central Bank of Iran to the currency exchange offices, where the price of $1 is 113,000 rials.

NIMA is a system intended for the sale of a certain percentage of the foreign currency gained from export. The price of $1 in this system is 107,000 rials.

In the black market, $1 is worth about 113,000-116,000 rials.