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Iran’s exporters under pressure of foreign currency revenue policy

Iranian oil tanker (Alf van Beem/WikiCommons)
August 15, 2020

Returning exports’ foreign currency revenue policy has exerted pressure on exporters, since they have difficulty to transfer revenue, said a member of Tehran Chamber of Commerce.

Ali Shariati has discussed the policy and its effect on exporters in private sector in an interview with Trend.

“Exporters were required by importers to return export foreign currency revenue, while those importers already received official foreign currency rate of 42,000 rial per one dollar and should have no worries,” Shariati said.

“In reality, the exporters can not return foreign currency revenue in short term, because they need the capital is necessary to continue export. The information about lack of commitment in returning foreign currency revenue was mainly related to petrochemical exporters that are part of public sector,” he added. “Thus, the major part of foreign currency revenues that has not returned to the country is related to the public sector, but these are exporters operating in the private sector that are condemned.”

“The government used to listen to suggestions of members of Chamber of Commerce, but currently, they no longer ask for private sector’s opinion. The fact that private sector accounts for $6 billion from the country’s $26 billion export revenue has been ignored. The policy has been extended for four months to return revenue, but the officials should consider if this is possible,” he noted.

Shariati went on to say: “Normally, export revenues should be transferred to banking system, and those criticizing exporters’ delay in returning foreign currency revenues, shall pay attention to the banking problems. At the moment, the money is being transferred via foreign exchange offices or by passengers that have incurred additional costs for exporters.”

“The government has exported goods to Afghanistan and Iraq, but can not return export revenue. South Korea has not returned $7 billion for Iran’s oil over a year,” he said adding that Japan and Iraq have to pay $10 billion and $30 billion respectively for importing oil and gasoline from Iran.

In his words, if the situation continues, the exporters will reduce their operations, and fake exporters will appear.

“Afghanistan still pays Iran in rial for the importing goods from the country, while Iraq uses foreign exchange offices to transfer money to Iran,” he said.

On July 26, the governor of Central Bank of Iran (CBI) announced that 108 Iranian export companies have returned export foreign currency revenue of $26 billion back to the country. The aim of the CBI’s policy is to improve transparency in export-import operation and monitor assigning foreign currency for imports.


© 2020 Trend News Agency