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Human Services

New foreign currency plan to be implemented on Tuesday (UPDATED)

Tehran, The new package of foreign currency, passed in the cabinet on Sunday, will be put into effect on Tuesday, said the new governor of the Iranian Central Bank.

'With this program, the depth of the currency secondary market, in which 20% of the non-oil exporters presented their foreign currencies, will become more,' said Abdonnasser Hemati in a televised program on Iranian national TV on Sunday evening.

Saying that the main exporters, including petrochemical plants, steel and non-ferrous metals, can sell their foreign currencies on the basis of 'supply and demand' in the secondary market, Hemmati said, 'The importers can use the money only if their orders have been registered in the Ministry of Industry, Mine and Trade and the ministry has decided that their goods are necessary for the country.'

He added that petrochemical products, non-ferrous metals, steel, natural gas and oil products are main exports of Iran.

'Having floating rates doesn't mean there won't be any inspection; the Central Bank will not interfere in the rates, but it will use its powerful currency to manage the market if necessary. That is, the floating market will be controlled,' Hemmati noted.

He said that the currency price for travelers will be the same as the floating market.

He added that the currency to enter the country is expected to reach at least $40bn this year.

According to the new policy, the Industry Ministry had the duty to update the list basic goods and medicine and monitor their distribution throughout the country.

Hemmati said that all the legal currency exchange centers 'can continue retailing foreign currencies for travel purposes with respect to the law and anti-money laundry regulations.'

'Bringing foreign currencies and raw gold into the country, according to the Central Bank laws, is legal and exempt from value-added tax and legal duties.'

The foreign country needed for importing other goods, such as oil and petrochemical products, and nonferrous metal and steel products will be provided through the currency secondary market, said the governor of the Iranian Central Bank.

Hemmati also said that the Central Bank of Iran will be allowed to open account for individuals and legal entities and pay interest to them and charge them as it decides.

Source: Islamic Republic News Agency - IRNA

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