BAKU, Azerbaijan, January 20. A single exchange rate for foreign currencies in Iran will benefit producers and exporters, Iran's Minister of Economic Affairs and Finance Ali Madanizadeh told local media, Trend reports.
According to the minister, the Iranian government has ceased selling foreign currency to importers at preferential rates for certain products. The full benefits of this decision are expected to become clearer in the coming months.
Madanizadeh explained that the government had been working on a plan for an extended period to stop providing foreign currency at subsidized rates to importers. Instead, these funds are now allocated to Iranian citizens.
He further emphasized that delaying the implementation of this plan could have exacerbated both the living conditions of citizens and the volatility in the foreign currency market. Before the plan’s execution, the value of foreign currencies against the Iranian rial had been increasing rapidly.
"By selling one US dollar to importers at the rate of 285,000 rials, a specific group was able to increase their profits through this currency, while ordinary Iranian citizens, as the ultimate consumers, were unable to benefit from this subsidy," he noted.
According to the Iranian government, foreign currency has been allocated to the country at low prices as a subsidy for the import of a number of essential goods and medical supplies. This has led to an increase in rent-seeking and corruption in the country, as a result of which citizens have been unable to take advantage of this subsidy. On this basis, each citizen receives funds from the government for the monthly purchase of essential goods for 10 million rials (about $10). The program, implemented by the government to support the living conditions of citizens, actually creates competition in the market.
The protests, which erupted in late December, were primarily triggered by the sharp depreciation of the national currency, escalating inflation, and various other economic hardships. While casualty reports have been circulating, the exact figures remain undisclosed.
On January 19, the selling price of $1 in Iran for remittances was over 1.26 million rials, and the buying price was 1.25 million rials.
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