Iran bans steel exports

Business Materials 18 March 2019 12:39 (UTC +04:00)

Baku, Azerbaijan, Mar. 18

By Elnur Baghishov – Trend:

Iran has banned export of steel via intermediary trading companies, Trend reports referring to the Young Journalists Club (YJC).

This was reflected in a letter addressed by the Iranian Minister of Industry, Mine and Trade Reza Rahmani to Director General of the Iranian Customs Administration Mehdi Mirashrafi.

The letter states that this decision has been made for the purposes of meeting the local needs, regulating the exports of steel products, supervising the return of exported currency to the country, and preventing the cheap sales of exported products, as well as based on the appeal of major manufacturers.

As per the decision, export of steel products will be done only by the manufacturers or their official representatives upon the official approval of the Ministry of Industry, Mine and Trade of Iran.

Certain problems have arisen with regards to the return of foreign currency earned from product exports in Iran. Exporters state that the sale of some of the foreign currency earned from exports to the NIMA system has hit their exports.

In Iran, the official exchange rate of $1 is 42,000 rials, and this exchange rate can be used for the import of certain essential goods.

The price of $1 announced for banks and currency exchange offices by the Central Bank of Iran ranges between 129,000-130,000 rials.

The price of $1 in the Iranian black market is about 130,000-135,000 rials.

NIMA is 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 in the NIMA system is between 88,000-89,000 rials.