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Strategic Impact of Preferential FX Removal on Feed Imports

Mr. Seyedjalal Tayeba-Tayeba, Board Member of Iran Feed Grain Importers’ Union

One of the main benefits of removing the preferential currency and moving it to the last link in the supply chain is reducing the risk for importers. In this case, the bargaining power of Iranian importers with foreign sellers will increase and the country’s credibility with foreign sellers can be restored.

Therefore, these things can help to secure basic goods and create better conditions in this area. However, if the government cannot provide the necessary funds to purchase basic goods on time, it seems that we will still remain in the previous vicious circle.

Given that approximately $12-15 billion is allocated annually for the import of inputs and basic goods, the main issue in transferring preferential currency to the second hall or other groups is how to secure these resources. The problem we faced in recent years, especially last year, was the lack of a specific and sufficient source for payment regardless of the rate of these resources. This lack of resources caused a long delay in the allocation of currency, purchase and provision of basic goods in the opinion of the institutions.

 

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