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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