Gov’t Limits Forex Supply to Importers

EghtesadOnline: The government has curbed the allocation of foreign currency for the import of some commodities and appears set to launch a revised currency policy, Mehr News Agency cited an unnamed bank official as saying.

News ID: ۷۴۵۴۷۷

19 June 2018

In response to the sudden hike in foreign exchange rates in early April, which saw the rial trading at 62,000 to the dollar, the government decided to enforce a single exchange rate of 42,000 rials and ban any trading beyond that rate. The Central Bank of Iran included importers among groups eligible to receive foreign currency at the government rate. However, the government is facing a challenge handling the huge demand of $20 billion worth of import orders, prompting it to halt the allocation of foreign currency to many import commodities, the unnamed banking source said.”Bank branches are accepting limited applications for the 42,000-rial dollar and have significantly wound down the process. The government move is considered positive, although it has given rise to ifs and buts, and might fuel rent-seeking,” Financial Tribune quoted the official as saying.