The Governor of the Central Bank of Iran Ali Salehabadi said $57 billion in foreign currency was supplied from assorted sources in fiscal March 2021-22.
“The amount was 57% higher on the preceding year when $36.5 billion were sold,” Salehabadi said in a press release posted on the CBI website.
He described the status of the domestic currency market as “stable” giving credit to non-oil exporters for securing a big segment of the forex income.
Non-oil exporters sold $29.3 billion or equivalent at the secondary foreign exchange market, known locally as Nima, indicating 66% growth compared to the year before.
In the Nima system, importers declare their currency needs, exporters register their overseas proceeds and banks plus certified moneychangers act as dealers.
As per law, non-oil exporters must repatriate a part of their earnings in the form of hawala and sell it via the Nima. They also can sell their currency to authorized exchange shops.
Surge in the repatriation of export earnings is partly due to the rise in forex rates in Nima, which apparently encouraged export companies to offer more of their foreign income.
According to Salehabadi, the dollar rose from 138,180 rials in the early months of fiscal 2020-21 to 232,000 rials in early 2021-22 ending the last fiscal year at an average 238,910 rials.
The rise in forex repatriation is also linked to the increase in foreign trade. According to Alireza Moqaddesi, head of the Islamic Republic of Iran Customs Administration, foreign trade (minus oil export) stood at 162 million tons worth $100 billion in fiscal 2021-22 – up 38% in value on the year before
“Exports stood at 122 million tons worth $48 billion, registering a 41% increase in value compared to last year. Iran’s top five export destinations were China, Iraq, Turkey, the UAE and Afghanistan,” Moqaddesi was quoted as saying by IRNA.
Imports reached 40 million tons worth $52 billion during the period, registering a 21% and 36% growth in volume and value, respectively.
The UAE, China, Turkey, Germany and Russia were the main exporters.
The CBI boss added that the regulated forex market, in which wholesale currency is sold in banknotes between banks and authorized exchange bureaus, also saw considerable growth in currency trade.
Almost $1.69 billion in banknotes was traded in the regulated market last year, up 176% on the year before. Likewise, €299 million was traded, up 186% annually.
