$3b Worth of Import L/Cs in Q1

The Central Bank of Iran said the total number of letters of credit opened for imports during the first quarter of the year to June 21 amounted to 3,447 that were worth $3 billion.  According to statistics published by CBI, 17,494 import L/Cs valued at $19.2 billion and export L/Cs worth $2.7 billion were opened during the year to March 20, IRNA reported. In August 2016, banks got permission to engage in foreign exchange trading at the free-market rate, in line with the government’s plan to unify exchange rates. The Cabinet in May 2017 also approved the details of the foreign exchange hedging directive proposed by the Export Guarantee Fund of Iran. A foreign exchange hedge transfers the foreign exchange risk from the trading or investing company to a business that carries the risk, such as a bank.