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Gov't Quits Subsidy Policy in New Budget

Gov't Quits Subsidy Policy in New Budget Gov't Quits Subsidy Policy in New Budget

The government has put an end to subsidized currency rates ($1=42,000 rials) in the proposed 2021-22 fiscal budget, the spokeswoman for Plan and Budget Organization said. 
The cheap currency has been sourced from oil export revenue and used only for importing basic goods, pharmaceuticals and machinery to avoid unaffordable price hikes in food and raw materials.
"The government hopes to sell crude oil at $40 per barrel with exchange the rate of 115,000 rials per USD. The dollar at 42,000 rials is omitted in the next budget", Mozhgan Khanloo was quoted as saying by IRIB news. The budget bill was submitted to parliament on Wednesday.    
 

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