Central Bank of Iran allocates USD47.375B in subsidized foreign currency for imports

(MENAFN) The Central bank of Iran (CBI) has allocated a total of USD47.375 billion in subsidized foreign currency for the importation of essential goods since the start of the current Iranian calendar year, which began on March 20 and ran until November 30. According to figures released by the CBI, a significant portion of this sum was earmarked for basic goods and medicines, with USD9.899 billion dedicated to these items. In addition, USD26.116 billion was provided for the importation of commercial goods, USD981 million for services, and USD10.379 billion for imports linked to exports of goods or services from Iran.

The subsidy allows basic goods and medicines to be imported at a much lower rate than the current market price. Specifically, these items are being imported at a rate of 285,000 rials per U.S. dollar, a stark contrast to the prevailing market exchange rate of around 700,000 rials per U.S. dollar. This difference underscores the significance of the CBI’s role in stabilizing the cost of essential goods in Iran.

In addition to these subsidized rates, importers can also obtain hard currency through the CBI’s Forex Management Integrated System (NIMA), which sets exchange rates that are more favorable than those on the open market. For instance, on August 17, the rate in the NIMA system was 450,937 rials per U.S. dollar, offering importers another avenue for securing foreign currency at lower rates than those found on the open market.

This substantial foreign currency allocation reflects Iran's continued efforts to mitigate the effects of sanctions and provide essential goods to the population. However, the effectiveness of these measures in easing economic pressure depends on the stability of the foreign exchange market and broader economic conditions.

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