Iran submits bill to dismantle heavily subsidized exchange rate

The administrative government in Iran has introduced a bill in parliament to remove a heavily subsidized exchange rate which is used to fund imports of staples and medicine into the country.

A letter signed by President Ebrahim Raeisi on Wednesday informed the Iranian parliament of the outlines of government’s bill which is aimed at using the resources released by dismantling the subsidy system to support poorer households in Iran.

The bill stipulates that the government will provide up to 270 trillion rials (nearly $1 billion) in cash handouts and other forms of support to Iranian families to compensate them for unwanted consumer price hikes that could be caused by ending the subsidies on foreign currencies.

The government currently allocates billions of dollars worth of hard currency each year to fund imports of medicine and staple grains at an official price of 42,000 for the rial against the US dollar.

That comes as the market price of the greenback in Iran is nearly seven times the official price.

 

Source: Press TV