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Businesses’ Need for Cash Skyrockets After Gov’t Ends Forex Subsidy Policy

Businesses’ Need for Cash Skyrockets After Gov’t Ends Forex Subsidy Policy
Businesses’ Need for Cash Skyrockets After Gov’t Ends Forex Subsidy Policy

A poll conducted by Iran Chamber of Commerce, Industries Mines and Agriculture (ICCIMA) shows that most businesses are now struggling with the rising need for liquidity after the government restructured its forex subsidy policy.  
Of the 115 companies polled, 91% procured 55% of their raw material and production input needs via subsidized currency.  
On May 10, the government officially ended the forex subsidy policy or the so-called preferential foreign currency.
Highly subsidized currency was used by importers of key essential goods, namely corn, soymeal, unprocessed oil, oilseeds, barley, wheat, flour and medicine.

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