€10.6 Billion in Non-Oil Export Revenues Repatriated Via Nima

EghtesadOnline: Since the beginning of the current fiscal year (March 20), more than €10.6 billion earned from exporting non-oil goods has been sold through the Central Bank of Iran's secondary forex market, known locally as Nima.

News ID: ۷۴۹۰۰۳

23 November 2019

According to the platform's website, importers also bought €8.69 billion worth of foreign currencies from the secondary market.

The secondary market is a platform where importers declare their currency needs, exporters register their currency proceeds and banks and authorized moneychangers act as dealers.

This allows the CBI to exercise oversight and control currency demand and supply, according to Financial Tribune.

Total value of foreign currency sold via Nima during the month to November 20 amounted to €1.16 billion, 4.35% lower than the same period last year–€1,217 billion.

The second day of the month recorded the highest volume in sales with €175 million.

Importers purchased €1.11 billion in the secondary market during the one-month period.

Import-Export Bill: $50 Billion

As per data released by the Islamic Republic of Iran Customs Administration, non-oil exports during the seven months ending October 22, amounted to $24.4 billion (€22 billion). The import bill during the same period was $25.17 billion (€23.5 billion), IRICA said.

Numbers indicate that the platform helped the CBI to bring back more than 41% of non-oil export revenue to the country. Importers also purchased one-third of their foreign currency from the secondary market.

Rules related to the repatriation of export earnings became more stringent after the United Sates re-imposed economic sanctions on Iran in the spring of 2018, triggering a severe shortage of foreign currency as oil exports declined to unprecedented lows.

Companies are now required to sell at least half of their export earnings in the secondary market at an exchange rate set below the higher open market price. Petrochemical companies must bring back at least 60% of their earnings and sell it via Nima.

As per law, at least 20% of the total proceeds sold in the secondary market must be in cash. The balance can be used to import goods, machinery and equipment either by the exporting firm or any other third party.