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Businesses Concerned About Liquidity Crunch After Lifting of Forex Subsidies

Businesses Concerned About Liquidity Crunch After Lifting of Forex Subsidies
Businesses Concerned About Liquidity Crunch After Lifting of Forex Subsidies

The reported government move to eliminate forex subsidies for import of basic goods would pose importers with new  liquidity problems, businesspeople say.

The government has called for putting an end to the controversial currency subsidies in the draft 2022-23 budget it presented to the parliament last week. 

In 2018 the former government subsidized currency for importing food and other basic goods selling the US dollar for 42,000 rials. This rate is less than a seventh of the price in the open market where the greenback buys 300,000 rials. 

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