Iran discloses amount of funds allocated for import of products
BAKU, Azerbaijan, Dec. 3
By Elnur Baghishov - Trend:
Since the beginning of this Iranian year (beginning on March 21, 2019) up till now, the funds worth $25 billion have been allocated for import of products to Iran, Director General of the Central Bank of Iran Abdul Nasser Hemmati wrote on his Instagram page, Trend reports.
“The funds worth more than $10 billion have been allocated since the beginning of the year to import essential products, medicines and medical equipment,” Hemmati added.
“The funds worth $15 billion were allocated at the rate set via the NIMA system for the import of raw materials,” the director general said.
Exporters in Iran must sell some revernues obtained from export at the exchange rate set via the NIMA system. Then these funds are sold to importers at the rate of the NIMA system.
Hemmati hopes that the process will continue with the exporters' efforts.
Commenting on the situation in the foreign exchange market over the past two weeks, the director general said that Iran's foreign currency reserves, the corresponding opportunities and the data related to the foreign currency obtained from export show that this situation is unreal and not constant.
"No major changes have been made in key variables," Hemmati said.
The director general added that in recent months, Iranian banks have ensured short-term liquidity through the interbank markets.
Hemmati said that the banks take less additional cash (by 40 percent less) from the Central Bank's reserves and it dropped to a minimum last year.
The strong devaluation in Iran last year had a negative impact on many sectors. Thus, the exchange rate of $1 has increased from 35,000 rials to more than 200,000 rials. Later, as a result of the intervention of the Central Bank of Iran, the exchange rate of $1 dropped to 100,000 rials. The Central Bank of Iran has created several systems to control the foreign exchange market. First, the exchange rate announced by the Central Bank of Iran is the official exchange rate. In accordance with this rate, $1 costs 42,000 rials.
In accordance with this rate, funds are spent for the import of the main products and for special occasions.
Second, the Central Bank of Iran sets the exchange rate for the banks. In accordance with this rate, $1 costs 124,000 rials.
Third, there is NIMA system in Iran. Exporters must sell some proceeds obtained from export to the banks in accordance with the rate set by this system in Iran. Then these funds are sold to importers for the import of certain products and raw materials. Presently, $1 costs 110,000 rials through the NIMA system and 125,000 rials in Iran’s black market.
The foreign currency increased in price as a result of the rise in gasoline prices in Iran during the last two weeks.