Warning from the Head of Tehran Chamber: Currency Imbalance Will Increase to 17 Billion Dollars

The head of Tehran Chamber of Commerce has stated that due to the government's insistence on currency policies related to exporters, the country's trade imbalance will rise from 7 billion dollars in the first seven months of this year to 17 billion dollars. Mahmoud Najafi Arab told the ILNA news agency that efforts to exempt at least the net private sector from the currency commitment law have not yet yielded results, and the currency obtained from their trade, which is about 13 billion dollars a year, must be offered in the 'NIMA system.' According to this chamber member, in the early 1990s, when the currency commitment system was not in place, exports thrived, and for example, during those years, the value of Iranian carpet exports soared to over 2 billion dollars, whereas in 2022, this figure plummeted to 400 million dollars. Reports indicate that the problems faced by economic actors with the currency commitment led the heads of the country's chambers of commerce to send a letter to the heads of the branches of government on October 8, outlining the obstacles and issues related to this type of commitment and criticizing it. Economic actors have stated that the obligation for exporters to sell the currency obtained from exports at the government price is the main factor behind the decline in exports and the increase in imports into the country. Additionally, there is a proposal to set the dollar at 35,000 tomans for the 2024 budget, which Ahmad Alavi claims will exacerbate inflation and economic recession. The internal conflict regarding corruption continues, with the head of the judiciary rejecting the executive branch's claims. There is also a likelihood of a surge in the dollar price, as a director from the Research Center of the Parliament stated that factors contributing to the increase in currency prices are still active.