According to CBI’s official website, during the meeting, it was decided to launch the long-awaited system in two weeks.

Integrated Forex Deals System — Nima — is a platform where exporters sell their currency earnings to companies importing non-essential goods.

The new deal system’s activity is expected to have a positive effect on the foreign currency market and help calm the foreign exchange market’s fluctuations.

Iran’s market has been experiencing fluctuations in the value of foreign currencies and gold coin prices since summer 2018.

The unified currency market can handle and ease the flow of money to and from banks and currency exchange stores.

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Turning to the secondary FOREX Market, he said, “CBI recognizes secondary Foreign Exchange Market and allows authorized FOREX shops to continue their activities at this market within the framework of rules and regulations in order to play leading role in financing trade and also implementing plans in the field of importing goods and services as well as exports.”

With regard to the organized Foreign Exchange Market, Karimi stated, “Central Bank of Iran will carry out its duties and responsibilities and continue its activity according to the bylaws ratified at the Money and Credit Council (MCC).”

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The Islamic Parliament Research Center (IPRC), in its recent report, has discussed ways to reach a non-oil economy, the one which is not dependent on oil revenues.Among the discussed methods by the Research Center, it can be referred to levying taxes on capital gains, on costly real estate and imports management.

“No economist supports continuation of sanctions. Economic sanctions weaken the country’s production power and reduces people’s welfare in the long and short run,” the report says.

However, the report admits that reducing reliance on oil income cannot be translated into decreasing oil exports to zero but as it discusses, in case oil exports drop to zero, the conditions would be manageable via managing balance of payments and controlling the forex market.

Urging the government to take a sustainable anti-sanctions attitude, the report calls for taking required measure to amend the foreign exchange rates, market and in general the structure of forex sector.

In recent months, the government has been dealing with unpredictable foreign exchange rate fluctuations which have directly influenced the prices of basic goods, raw materials, and domestic unofficial markets.

Accordingly, the government has been determined to review and modify its monetary policies about setting foreign exchange rates, curb the rampant inflation and high liquidity volume and supply the present budget deficit via relying on stock market.

It also has sought to move toward a non-oil-reliant economy to be able to prevent its operating costs, surpass its income, to tackle the rampant inflation, increase the income of its employees and pay the intended cash subsidies to lower income-earners without increasing the prices of energy carriers and fuel or levying higher taxes, which do not seem to be welcome by the Iranian nation under the ongoing conditions.

Based on the latest data released by the Islamic Republic of Iran Customs Administration (IRICA), in the first two months of the current Iranian calendar year (March 21- May 21), Iran exported $8.4 billion of non-oil products. The figure shows an increase of 7.1 percent from $7.7 billion in the same time span in the year preceding.

On May 14, Iranian first Vice-President Es’hagh Jahangiri announced that the country’s reliance on oil income has dropped below 30 percent. The government could manage to decrease Iran’s dependence on oil revenues from its previous 80-90 percent to less than 30 percent, the Iranian official said.

In recent days, the forex rates have experienced a cooling trend and the central bank claims to have more control over its foreign exchange market. CBI believes the decline is the result of the formation of the CBI’s planned Regulated Foreign Exchange Market, which could make the market balanced via fair distribution of forex resources among domestic exporters who have re-injected their exports revenues back into the economy cycle.

Some, however, believe that the drop is due to political reasons: the visit of the Japanese foreign minister to Iran.

Whatever the reason is, the predictability of this market is still low. No one can foresee the market’s trend even in near future.

As discussed, regarding Trump’s new round of sanctions on Iranian metal and petrochemicals sector, the need for an indigenous economy and boosting production to have non-oil exports revenues augment is more highlighted.

Increasing non-oil exports to neighbor countries besides making structural economic modifications are hoped to revive the breathless economy.

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Expressing content about the recent forex policies applied by the government and the central bank, he underlined that formation of the regulated market will organize domestic forex market without any negative consequences.

“The first advantage of the regulated market would be making the market balanced via fair distribution of forex resources among domestic exporters who have re-injected their exports revenues back into the economy cycle,” he described.

He also noted that the regulated market will impede rent and corruption caused by the different rating system of foreign currencies.

In early March, Central Bank of Iran (CB) announced its plan of launching a regulated forex market to keep the prices in the foreign currencies exchange market down.

At the time, the CBI governor Abdolnaser Hemmati reported of a new measure to further bring down the prices in the exchange market, in the form of the organized market, which according to him, was a mixture of the formal market and the free market.

Some, however, translated the CBI’s plan to launch the organized market as a preparatory step for omitting Iran’s domestic Foreign Exchange Management Integrated System (locally known as NIMA), where the forex rates stood somewhere in between those of the free and official market.

On Saturday, Hemmati announced that the central bank has no intention to omit NIMA from domestic forex trade market.

Calling NIMA the pivot of domestic forex transactions, Hemmati underlined that the system will not be crossed out under any circumstances.

“The news about eliminating NIMA is not true while domestic exporters are required to inject up to 50-60 percent of exports revenues to the country via NIMA,” Hemmati said.

As previously announced, CBI has also unveiled a decree containing a list of new incentives for the country’s exporters that re-inject their earned foreign currency to  NIMA. Based on the announcement, those exporters who return more than 60 percent of their earned currency to the country’s economic cycle in accordance with previous decrees, in addition to the listed incentives, they will become CBI’s priority for allocation and supply of foreign exchange [in case they need it].

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