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Proposed Rise in Forex Rate for Essential Goods Import Censured

Proposed Rise in Forex Rate for Essential Goods Import Censured
Proposed Rise in Forex Rate for Essential Goods Import Censured

The abolition of the 42,000 rials per dollar exchange rate for the import of essential goods recently approved by Majlis Joint Commission is bound to increase inflation, says the head of Plan and Budget Organization.
“The public cannot afford higher inflation rates and further economic pressure under the current circumstances,” Hamidreza Haji-Babaie was quoted as saying by IRNA.
Majlis Joint Commission recently decided to change the exchange rate for essential goods import from 42,000 rials to 175,000 rials per dollar, suggesting that the prices of essential imports would be set in accordance with the exchange rate of the secondary FX market, known by its Persian name Nima. 
The real market price of the dollar is around 60% higher. 
Also known as necessity goods, essential goods are products consumers will buy, regardless of changes in income levels.

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