The government allocated $20 billion for imports in the first four months of current fiscal year (March 20- July 22).
This was $6 billion higher than the $14.2 billion given in the first four months last year, according to state-owned news agency, IRNA.
As per data from the government news agency, the government disbursed $56.9 billion for import in the last fiscal year. In the before that it gave $36.4 billion.
The noticeable rise in forex allocation for import was despite the fact that government stopped subsidizing imports in May.
On May 10, the Raisi administration officially put an end to the controversial and costly subsidy policy wherein successive governments gave tens of billions of dollars to importers of essential goods.
Time and again economists and experts warned that huge amounts from this money was being embezzled and stolen by vested interests as the promised basic goods were not imported by some companies.
Reducing the currency needs for import was among the pivotal goals of the ending the subsidy plan, which was dubbed by the government as “economic surgery”.
However, it appears that fresh increase forex allocations for import is linked to the staggering rise in commodity and food prices globally in the follow-up to the Russian invasion of Ukraine. Countries across the spectrum are suffering due to the high and rising costs of importing food and fuel.
Despite the US sanctions, IRNA said the government has been able to meet its currency needs from non-oil exports.
in recent weeks and following fresh volatility in the forever chaotic currency market, the Central Bank of Iran allowed exporters to sell their overseas earnings at prices beyond rates quoted in secondary forex market, known as Nima.
Nima is an online platform affiliated to the CBI where exporters sell their overseas income and companies buy for import.
Rules oblige exporters to repatriate their earnings within four months starting from the date the export permit is issued by the customs.
As per rules, exporters have to 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 their currency to authorized exchange shops.
In addition, exporters can use part of their earnings to import goods, raw material and machinery either for their own needs or for a third party under “currency barter between exporters and importers”.
Striving to find alternative sources of income to substitute shrinking oil revenue, the government is trying to promote non-oil export and has pledged to remove obstacles and curb the bloated bureaucracy hampering vital exports.
