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Real Rial Rate Main Booster of Exports

Real Rial Rate Main Booster of ExportsReal Rial Rate Main Booster of Exports

Iranian exports are currently suffering as a result of an "illogical" endeavor by the government to keep the national currency, rial, strong against other foreign currencies, the head of Exports Commission at the Iran Chamber of Commerce, Industries, Mines and Agriculture said.

"One of the main reasons behind the low volume of non-oil exports is that exchange rates are not real. Illogically keeping the currency overvalued is one of our most serious hurdles," Razi Haji-Aqamiri was also quoted as saying by the official news portal of ICCIMA.

The official said many countries that have achieved significant growth have done the opposite, such as China that has kept its national currency weak  to the chagrin of the US.

"If currency rates are low in a country and it is striving to keep the value of its national currency high, exports must be forgotten because that country cannot compete for exports at the global level," he added.

According to Haji-Aqamiri, the only solution to boost non-oil exports is unification of dual foreign exchange rates and attraction of foreign investments.  

 

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