The Industries Ministry and Central Bank of Iran signed a memorandum of understanding to coordinate the foreign trade programs of the former with the forex policy of the latter.
According to a press release seen on the CBI website, a joint taskforce was formed and became operational to this end soon after the MOU was signed.
The taskforce will craft measures “to augment non-oil export, facilitate repatriation of export forex income, supply currency for import and reform foreign trade procedures”.
It will meet once in a week and examine issues related to foreign trade, namely repatriation of export income.
In the first meeting attended by the CBI Governor Ali Salehabadi and Industries Minister Reza Fatemi Amin, it was decided to improve the export income repatriation method that allows companies use part of their earnings to import goods, raw material and machinery either for their own needs or for a third party.
Henceforth the number of items that can be imported under the framework known also as “currency barter between exporters and importers” will increase.
Currency barter is one method available to exporters’ for meeting their forex repatriation commitments. Insofar as the law goes, non-oil exporters must bring back a segment of their earnings in foreign exchange hawala and sell it via the secondary foreign exchange market, known as Nima. They also can sell currency to authorized exchange shops.
Nima is an online platform affiliated to the CBI where exporters sell their currency income and companies buy for import. Rules oblige exporters to return their earnings within four months starting from the date the export permit is issued by the customs authorities.
Struggling to find alternative sources of income to substitute lost oil revenue, the government is trying to promote non-oil export and has said that it is committed to removing obstacles.
Parties signing the MoU said the taskforce is expected to offer new ideas to boost exports and foreign trade.
The CBI says under facilitative rules announced in recent months export activity and, by extension, currency revenue have increased.
Export companies sold $18.1 billion or equivalent in the Nima market in eight months (March 21-Nov.20). The amount was $10.7 billion in the corresponding period last year, according to CBI data.
Iran’s foreign trade (minus crude oil export) reached $63.1 billion in the eight months -- up 40% year-on-year, according to Mehdi Mirasharfi, the head of the Islamic Republic of Iran Customs Administration. Exports grew 10.5% and 42% in volume and value, respectively YOY.
