How lower USD rate impacts Iran’s domestic production?
Baku, Azerbaijan, Nov. 21
By Khalid Kazimov – Trend:
Although the value of US dollar against Iranian national currency is steadily growing in the Islamic Republic’s free market, many believe that the exchange rate is still lower than its real value.
One US dollar was traded at 40,892 rials in the free market on Tuesday, indicating a surge of 19.15 percent compared to Oct. 21.
This is while a group of experts have expressed concerns over the impact of the government’s policies on protecting the value of the national currency, suggesting this may harm the domestic production.
"The government’s excessive insistence on stabilizing the currency rate has created enormous problems for production," said Masoud Khansari, the head of commerce chamber of Tehran.
He also expressed concerns over the rate of economic growth in the coming months.
Despite the existing inflation over the past years, the rate of US dollar against the Iranian rial has not demonstrated a proper change.
On the other hand, it appears that the government’s policy on protecting the rate of national currency has accelerated the growing amount of imports to the country.
According to the Trade Promotion Organization of Iran, the country exported worth of $20.5 billion of non-oil products over the first half of the current fiscal year (ended March 21). However, Iran’s imports in the mentioned period valued $23.5 billion.
Khansari believes that the government’s policies regarding currency have caused serious problems for the domestic production.
In the meantime, a group of observers have forecast that the price of US dollar would experience a hike in the coming months ahead of the new Iranian calendar year due to a surge in the demands.