€420m Repatriated Since March 21

EghtesadOnline: Since the beginning of the current fiscal (March 21) to April 10 am estimated €420 million plus was deposited with Nima (Integrated Forex Rate System). The amount includes both Central Bank of Iran’s own contribution and repatriation of export earnings.

News ID: ۷۴۷۰۴۳

13 April 2019

The foreign currency offered on Nima will help meet the need for currency for imports. According to the CBI website, over half of the currency sold to the system in the mentioned period was bought by the industries sector.

Each euro on Nima was sold on average for 108,000 rials.  Nima is a system developed by the CBI to be used as a venue for as place where companies sell their export earnings at rates lower than the open market.

The currency is then sold to the importers for goods categorized by the government as non-essential. Government allocates subsidized rates (USD=42000 rials) for importing essential goods, Financial Tribune reported.

Lower exchange rates in Nima compared to the open market has tempted most exporters not to repatriate their earnings to the CBI-controlled system as they seek higher profits.

According to Tasnim news agency, companies barely offered one-third of their earnings during the previous fiscal (March 2018-19) on Nima --  a development the CBI and senior government officials have often taken note of and warned those dodging the stringent forex rules.

Testing the reward and punishment stratagem, CBI tried to convince traders to return their currency earnings to the economic cycle and offered an incentive package in February involving repatriation exemptions for earnings up to a specified ceiling. It also said those who respect the rules in the breach would face prosecution.