“High inflation rates had their impact and even if we managed to keep the foreign exchange rates low, it was realized through oil revenues,” Pedram Soltani was also quoted as saying by ISNA.
The exchange rate for the US dollar, the most widely-traded foreign currency in the Iranian market, currently hovers above 40,000 rials–a rate previously considered unusual.
Soltani noted that Iran sells raw materials and an increase in currency rates would not be beneficial for exports, as the country’s production sector is currently challenged by unhealthy competition and smuggling, according to Financial Tribune.
“Therefore, even if a balance in currency rates does not have a significant impact on exports, it would work in our favor in terms of imports and [in countering] contraband and help local manufacturers that only produce commodities required by the domestic market,” he said.