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The Central Bank of Iran (CBI has provided over $28 billion of subsidized foreign currency to importers of basic goods since the start of the current Iranian calendar year (March 20) up to August 25. CBI figures showed that some $28.971 billion has been allocated to imports of basic goods, medicine, commercial goods and products and imports that have taken place in return for exports of goods or services from Iran, Tasnim News Agency reported. As reported, of the mentioned figure $6.307 billion was supplied for importing medicines and essential goods, and the rest was for trade-commercial products.
Basic goods and medicine are imported into Iran at a rate of 285,000 rials per U.S. dollar. The rate is much lower than a market price which is currently hovering around 590,000 rials per U.S. dollar. That comes as importers can also receive hard currency at a rate applied in CBI’s Forex Management Integrated System, known by its Persian acronym NIMA. The price was 450,937 rials per U.S. dollar on August 17. Back in March, Iran’s Expediency Discernment Council authorized the government and the state management apparatuses, including the CBI, to spend 13.6 billion euros at a preferential exchange rate for the import of basic items such as agricultural products, medicine, and its raw materials as well as medical equipment.
Council members took the decision on the import fund allocation while meeting under the chairmanship of Ayatollah Amoli Larijani to discuss and review the budget for the current financial year. They stressed that the government would offer preferential rates for clearing or exchanging foreign resources resulting from the export of oil, gas, and gas condensates for the import of “only basic agricultural goods and medicine”, the list of which was approved by the Council of the 13th government ministers at the end of April.
The imports are overseen by a working group consisting of the first vice president, the head of the central bank, the head of the country’s planning and budget organization, the minister of economic affairs and finance, the minister of agriculture as well as the minister of industry, mining, and trade. The Minister of Health along with other relevant bodies are also required to implement and monitor the allocation, distribution, and use of currency for medicine and equipment. In addition, the central bank is obliged to prepare monthly reports on the implementation of Clause 4(A) of the Budget Law.
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