Iranian Exporters Repatriate €12b in 9 Months

EghtesadOnline: Exporters of non-oil goods repatriated more than €12.1 billion ($13.4 billion) of their overseas earnings to the country since the beginning of the current fiscal year in mid-March, the Central Bank of Iran reported.

News ID: ۷۴۹۲۵۹

22 December 2019

The amount includes earnings in currency hawala that was offered on the secondary forex market, known locally as Nima, during the nine-month period to December 21, IRNA reported.

The second month of the year (April 21-May 21) recorded the highest volume of repatriated earnings when exporters brought back €1.15 billion.

On the flip side, the returned amount was the lowest in the fifth month of the year at €928 million, Financial Tribune reported.

Also, non-oil exporters sold €1.35 billion of their overseas earnings during the last calendar month that ended on Dec. 21.

Nima is a CBI-affiliated platform where exporters sell their overseas currency earnings and importers purchase the currencies for importing non-essential goods, machinery, equipment and raw materials.

On this platform importers declare their currency needs, exporters register their currency proceeds and banks and authorized moneychangers act as dealers.

The market was launched in April 2018 in the midst of a period of steep volatility in the currency market with the aim, in part, to allow CBI to have more control over forex allocations for import and export.

Currency Purchase via Nima

Exporters bought €9.9 billion via Nima, indicating that currency offers surpassed demand.

As per the CBI data, close to €1.2 billion was sold to exporters during the last calendar month.

Based on rules announced by the CBI in mid-May, companies are now required to sell at least half of their export earnings in the secondary market at exchange rates 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.