Iran has reduced its allocation of subsidized currency for imports, marking a significant economic development. The move affects businesses relying on cheaper foreign exchange for essential goods and equipment. According to the Central Bank of Iran (CBI), the country allocated $32.134 billion in subsidized currency for imports during the first seven months of this year, down 20% from $40.405 billion over a similar period last year.
The CBI highlighted that $8.364 billion was directed toward basic goods and medicine imports from April to October. This figure represents a slight decline from last year’s $8.757 billion allocation. The bank applies a rate of 285,000 rials per US dollar for these goods, while the market rate on Monday stood at 1.07 million rials per dollar in Tehran.
For other goods and manufacturing equipment, the CBI used a secondary rate of 703,000 rials per US dollar. Around $22.878 billion was allocated through this channel, slightly higher than $21.855 billion last year. Additionally, $0.892 billion went to imports related to Iran’s services sector, compared with $0.903 billion last year.
The central bank did not mention allocations for exporters, which had reached $8.89 billion last year to ease access to subsidized currency. The reductions reflect Iran’s broader efforts to manage limited hard currency resources under U.S. sanctions. These sanctions continue to restrict oil exports and access to international banking.
Experts note that the cut in subsidized currency could increase import costs, strain supply chains, and affect prices of basic goods. Businesses dependent on foreign equipment may face delays or higher expenses. Furthermore, the disparity between the official and market exchange rates creates challenges for companies trying to plan import budgets.
Officials emphasize that the policy aims to prioritize essential goods and stabilize the currency system. Analysts suggest that Iran may continue adjusting allocations to balance economic pressures with domestic demand. The government’s next steps could include revising rates or targeting specific sectors for support.
In conclusion, the reduction in subsidized currency allocations signals Tehran’s cautious approach to foreign exchange management. The move underscores the ongoing economic strain caused by sanctions and highlights the need for strategic planning in import-dependent sectors.