The Price of Government Dollar Exceeds 4400 Tomans

The Central Bank of Iran has increased the price of the government dollar, known as the single-rate dollar, from 4200 tomans to 4403 tomans. At the same time, the Mehr news agency reported that raw materials and intermediate goods for production have been excluded from receiving government currency. On Saturday, August 6, ISNA reported that the reference rate for the dollar is announced as 4403 tomans, but according to this news agency, this dollar is sold to applicants at a price of 4425 tomans. ISNA noted that unofficial reports had predicted that the government dollar rate would not change for six months, but in the past two months, this dollar has increased by about 200 tomans. Following widespread turmoil in the currency market about four months ago, the Iranian government finally announced on April 21 that the currency needed for imports and the entry of currency from exports into the monetary and banking network of the Iranian economy would be provided at the rate of 4200 tomans, and all other rates would be considered 'unofficial and illegal.' However, this policy faced widespread criticism and, according to some officials and analysts, fueled corruption. For instance, Akbar Turkan, an advisor to the President of Iran, criticized the Central Bank's performance, stating that some importers 'get the 4200 toman currency through various tricks and sell goods at the rate of 8000 tomans.' With the failure of the single-rate currency policy, the Central Bank announced on July 4 the establishment of a 'secondary currency market,' thereby making the currency price in Iran three-tiered. Furthermore, the Mehr news agency criticized the 'wrong' policies of Rouhani's government over the past 110 days, which led to the 'formation of rents,' reporting that raw materials and intermediate goods for production have also been excluded from receiving government currency. According to Mehr, the government dollar will only be allocated to 'importing medicine and essential goods,' while other needs will be met at the secondary market rate, which is a place for interaction between exporters and importers. This news agency quoted a banking official stating that petrochemical companies are no longer required to offer their export currency to the government at the rate of 4200 tomans and will only fulfill their currency obligations by providing currency at the agreed rate in the secondary market. The turmoil in the Iranian currency market, especially after the U.S. withdrawal from the JCPOA, peaked, and in recent days, the verbal conflict between Iranian and American officials has further fueled this chaos. According to reports from the unofficial market in Tehran, on Sunday, each U.S. dollar reached over 9500 tomans.