Iran Auto Parts Makers Facing More Headwinds

Once again, overnight changes in government forex policies have put Iran’s troubled auto parts makers between a rock and a hard place
Iran Auto Parts Makers Facing More HeadwindsIran Auto Parts Makers Facing More Headwinds
US sanctions and the ailing economy have hampered activities of carmakers, with their debt to parts manufacturers going through the roof to reach a whopping 150 trillion rials ($3.5 billion)

Given the turmoil surrounding the government forex policies which have hampered the import of raw materials, auto parts makers are struggling to keep production lines up and running amid a stream of economic setbacks.
While the government's earlier forex policy had allocated subsidized currency to auto parts makers for import purposes, the strategy was scrapped and replaced with another which requires businesses to now pay the difference between the subsidized US dollar at 42,000 rials and the free market USD exchange rate before they can release goods from customs warehouses, Asre Khodro.


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