The Central Bank of Iran says it has plans to further increase the repatriation of foreign currency by exporters, noting that it is not too concerned about meeting forex demand.
"The integrated forex market is capable of meeting the demand for currency under normal conditions, including the demand for cash.
Besides, the CBI is ready to intervene in the market and control rates when demand grows abruptly," Shiva Ravashi, the CBI director of foreign exchange operations and commitments was quoted as saying by the bank's website.
In the past three years the former government gave subsidized currency for importing basic goods. Under the apparently failed scheme the dollar was sold to importers for 42,000 rials -- almost a seventh of the value in the open market.
The CBI has also launched a regulated market which is a network of banks and certified moneychangers working under CBI supervision and dealing in wholesale trade. The market aims to stabilize the chaotic currency market by creating and organizing an open and transparent environment where currency is traded in cash via an electronic platform.
Elaborating on CBI measures to stabilize forex rates and meet the omnipresent demand, Ravashi said, "Imports account for a recognized volume of demand for foreign currency. The 2021-22 budget law requires the CBI to allocate $8 billion for importing necessary goods, which has already been disbursed."
"We also have allocated $1.5 billion for importing Covid-19 vaccines," she said.
The CBI said earlier it provided $18 billion for imports not mentioned in the list of essential goods through Nima platform. Nima is an online platform affiliated to the CBI where exporters sell their overseas income and companies buy for imports.
"The CBI has several measures to supply the forex market and meet real demand for foreign currency. The new administration is determined to help improve the repatriation of non-oil export revenues."
According to the official, the government is working on new inventive packages to accelerate the repatriation of non-oil export earnings to help prop up domestic production units and lift the economy long saddled with chronic instability, inflation, rising prices and the US economic blockade.
