The Start of the Single Exchange Rate Project in Iran; Nima Currency on the Rise

A government news agency has reported the gradual increase in the Nima exchange rate in recent months, stating that the project to establish a single exchange rate in Iran has begun with efforts to bring the official currency price closer to the free market rate. The Tasnim news agency, affiliated with security institutions, reported on the trend of unifying the currency rates in Iran: "Since the beginning of last winter, the upward trend of the Nima rate has accelerated, rising from about 40,000 tomans to 44,600 tomans, indicating the policymakers' intention to align the Nima rate with the free market rate." This news agency emphasized that any increase in the official exchange rate will naturally lead to higher import costs. Consequently, Tasnim noted that the increase in the Nima rate will lead to higher prices for these goods and ultimately for domestically produced items. In this context, Hossein Samadsami, a member of the Economic Commission of the Islamic Consultative Assembly, criticized the government's and the Central Bank's approach to establishing a single exchange rate and eliminating the preferential currency for essential goods, stating, "Since 2017, we have increased the official currency rate from 7,000 to 44,000 tomans following the free market rate, but now the free rate is 60,000 tomans. Can you guarantee that if you raise the official rate to 60, the free market rate won't surge?" Concerns about the official exchange rate reaching 60,000 tomans have intensified with the appointment of Ali Tayebnia as senior advisor to Mohammad Bagher Ghalibaf. During the electoral competition in which Tayebnia participated, he emphasized the necessity of a single exchange rate, stating: "In a society where foreign currency resources are sold to people at a preferential rate of 40,000 tomans while the dollar price in the free market is 60,000 tomans, and some buy dollars at 40,000 tomans or even lower, anyone with access to preferential dollars can suddenly gain billions of tomans in income. So why should anyone strive for creative production in such a society?" At the same time, Seyyed Morteza Afaqeh, an economist and university professor, expressed hope to the newspaper 'Etemad' that Tayebnia's statements do not imply that they intend to eliminate the preferential currency and establish a single exchange rate. The single exchange rate policy has also been emphasized by Massoud Pezeshkian, and it seems that in this new round of economic reforms in Iran, the government will engage in a "large economic auction" without considering the consequences of implementing these policies. Experts believe that under conditions where people's purchasing power has significantly decreased and the government has taken no action to improve people's livelihoods, the implementation of these policies could lead to social protests, a significant portion of the middle class falling below the poverty line, and those already below the poverty line descending into absolute poverty. The Central Bank Governor stated: "Our dominance over the currency market is increasing." The response of the Political Bureau of the Islamic Revolutionary Guard Corps to the beginning of the "economic war" and the "rush of people to the market" has been noted. The dollar has reached the threshold of 62,000 tomans, and the heavy decline in the stock market continues. An unprecedented drop in the Tehran Stock Exchange occurred; the death of Haniyeh disrupted the markets, and the dollar reached 61,000 tomans. A member of the Chamber of Commerce stated: "The key to developing trade with Iraq is to exit the FATF blacklist." The dollar has reached 62,000 tomans, and gold coins have reached 43 million tomans.