Iran Planning New Ways to Repatriate Export Earnings

EghtesadOnline: The Central Bank of Iran will introduce new measures to help channel export earnings into the economy, the CBI governor Abdolnaser Hemmati said on Saturday in a meeting with provincial governors.

News ID: ۷۴۶۲۰۳

11 November 2018

Hemmati said export in rial is tantamount to capital outflow and the CBI wants to prevent this and help exporters to repatriate their earnings.

Exporters to some neighboring countries especially Iraq  complain that their export earnings are reimbursed to them in rial rather than foreign currency and therefore they should be exempt from currency repatriation rules.

Hemmati has so far refused to budge, saying that all export receipts should be in foreign currency, Financial Tribune reported.

The CBI has yet to announce the new measures.,

In related news, Mohammad Lahooti, head of the Iran Export Confederation said in a tweet that the CBI would do better to listen to the views of the private sector regarding return of export earnings before issuing a new directive “so that there will not be a need to rewrite the rules” again and at short notice.

Hemmati says non oil exports amounted to $27 billion during the seven months to October, registering 13% increase compared with last year’s corresponding period.

Referring to non-stop US hostility to stop Iranian oil export, he said there have been negotiations with the eight countries eligible to buy Iran’s oil.

He said $31 billion was allocated for imports during the seven months, more than $23 billion of which was provided by CBI and less than $7 billion by non-oil exports in the secondary market. Some $10 billion was allocated for import of essential goods, pharmaceuticals and medical equipment during the period. Hemmati expressed the hope that currency return by exporters on the secondary market would increase in light of the new CBI measures.

Washington has been pushing governments to cut imports of Iranian oil to zero. But, fearing a price spike, it granted Iran's biggest buyers - China, India, South Korea, Japan, Italy, Greece, Taiwan and Turkey sanctions waivers for six months.

That will allow the eight, which account for about 75% of Iran's oil exports, to import at least some oil for another 180 days.

Hemmati also noted that Iran will turn sanctions and threats into opportunities and recalled that Iran is home to 16 border provinces. Increasing exports to neighbors plays an important in economic development, he said.