Iranian parliament specifies funds for supply of basic products

Business Materials 4 March 2019 16:01 (UTC +04:00)

Baku, Azerbaijan, Mar. 4

By Elnur Baghishov – Trend:

Members of the Iranian parliament have approved the allocation of $14 billion for the provision of essential goods and medicines with dominant currency prices, Trend reports referring to ISNA.

Iranian parliamentarians may use electronic cheques for the provision of essential goods.

According to the decision, the government must ensure that the remaining difference in rials from $14 billion in the budget of the next year (begins March 21, 2019) be covered by revenues from crude oil exports.

The government must take the following steps:

1) Support to domestic production with dominant currency prices, import and supply of essential goods, medicines, medical and agricultural equipment, livestock products.

2) Support to domestic production, import and supply of essential goods, medicines, medical and agricultural equipment, livestock products in rates set by NIMA system (used in Iran for sale of a certain percentage of foreign currency gained from sale of non-essential goods and export), payment of the difference via NIMA system

3) The government will use a dominant currency price, an electronic cheque, or payments in cash for the provision of the essential goods needed by citizens.

4) The government should monitor the implementation of this program and submit a report on its own function to the parliamentary committees of Program and Budget, Economy, Agriculture and Industry once every 3 months.

Dominant currency prices are declared for the purchase of currency when there are two or more foreign currencies with rates exceeding a country’s official exchange rate.

The official exchange rate for $1 in Iran is 42,000 rials. It is possible to import certain products with this amount.

The price of $1 in the Iranian black market today stands at around 135,000 rials.

The price of $1 announced for banks and currency exchange offices is 132,000 rials.

The price of $1 in the NIMA system is 96,000 rials.