BAKU, Azerbaijan, Dec. 15
By Elnur Baghishov - Trend:
Iran has no worries about non-oil exports, the Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati said at a meeting with economists on currency stability, liquidity control, inflation reduction and other areas, Trend reports referring to the CBI.
The CBI governor noted that Iran's exports continue despite all the economic difficulties and sanctions imposed by the US.
Hemmati said that the weight of Iran's non-oil exports increased in the first eight months (from March 21 to Nov. 21, 2019) of the current Iranian year, compared to the same period of the last Iranian year. However, changes in export prices resulted in a reduction in the declared value, he noted.
With this in mind, exports of non-oil products are growing, the CBI governor stressed.
Import currency is also provided through the NIMA system, the Iranian banker said, adding that the foreign currency supply is stable in the NIMA system.
During the reported eight-month period, Iran exported non-oil goods worth $27.4 billion, while the amount of imports reached $28.3 billion.
The US imposed sanctions on Iran in November 2019 and expanded them in several stages. The sanctions have had negative impact on Iran's economy.
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 131,000 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 109,000 rials through the NIMA system and 126,000 rials in Iran’s black market.