“Previously, foreign investors were only permitted to use the official exchange rates. This was not in their interest and reduced the value of their investments by up to 20%,” Bahador Bijani was also quoted as saying by Bourse Press.
The new initiative is aimed at encouraging foreign investments in Iran.
Iran currently uses two exchange rates, the free market rate, which stood at 37,340 for rial against the US dollar on Sunday, as well as the official exchange rate for a number of state transactions. According to the Central Bank of Iran, the official rate stood at 32,440 rials on Sunday, according to Financial Tribune.
The dual forex regime has been blamed for rampant rent-seeking and corruption in the Iranian economy. Although the Central Bank of Iran has promised on many occasions to abolish the system, the move has yet to be implemented.