TCCIM Boss Decries Forex Subsidy Policy

The head of the Tehran Chamber of Commerce, Industries, Mines and Agriculture (TCCIM,) Masoud Khansari, said the government policy of subsidizing foreign currency is partly responsible for the massive growth in money supply.
Addressing a TCCIM session, Khansari said the controversial subsidized currency policy increased broad money by at least 7,500 trillion rials ($26.7 billion) in the last fiscal year (March 2020-21), the TCCIM website reported.
In three years the government gave cheap currency for importing basic goods ($1=42,000 rials), which was and is almost a seventh of the rates in the open market.
The cheaper currency is sourced from oil exports and used only for importing basic necessities to avoid unaffordable price hikes in food and raw material.