Economic Activists Have Not Received Currency for 5 Months; Central Bank Unable to Provide Dollars

The Central Bank's claim of timely and sufficient currency provision for the import of essential goods and other national needs has faced backlash from economic activists. A member of the Tehran Chamber of Commerce's board stated that economic activists have not received currency for months and have been waiting for currency allocation for 5 months. The website 'Eghtesad Online' reported that on Sunday, April 2, Davood Rangi, a member of the Tehran Chamber of Commerce, announced that currency allocation for the import of essential goods has been halted for a month. The Central Bank immediately denied this claim, but 'Eghtesad Online' emphasized that this denial comes as economic activists and members of the Tehran Chamber of Commerce reiterated this issue in a working breakfast meeting with members of the Islamic Consultative Assembly on Tuesday, April 3. In this context, Kaveh Zargaran, a member of the Tehran Chamber of Commerce, stated: 'Economic activists have been waiting for currency allocation for 5 months.' Zargaran noted that since October 21 of last year, many companies have imported essential goods and sold them in domestic markets while waiting for currency allocation, and many goods have not been eligible for currency allocation since that date. Zargaran stressed that while the Central Bank claims that the Tehran Chamber has provided incorrect information, 'as the head of the Grain Association, I declare that multiple shipments from various companies have been waiting for currency allocation since October 21 of last year and have still not been able to receive currency.' Zargaran also emphasized that the allocation of currency for sugar and rice, which is set at 28,500, is to be eliminated, but this has not been communicated, and this process could complicate the supply of these goods in the market in the future. Currency provision has become one of the major challenges for the Islamic Republic, as access to oil and non-oil export dollars has become difficult due to U.S. sanctions. Iraq's cooperation with the U.S. Treasury and the cutoff of the Islamic Republic's access to Iraqi dollars have exacerbated this issue. Experts predict that with the intensification of sanctions in recent days and the possibility of widespread sanctions by the European Union against Iran, the economic situation, particularly in terms of currency reserves, will become more critical for the Islamic Republic.