Demand falls and supply freezes in the livestock input market after currency liberalization

Currency fluctuations have severely reduced market liquidity and delivered a downward shock to demand. Although the market appears to be calm after the surge in demand caused by the war, this calm is actually a stagnation caused by a lack of liquidity. In such circumstances, suppliers have increased financing rates for long-term sales.

To compensate for the decrease in liquidity of importers, who are mainly merchants, Rial facilities have been provided to producers, but no measures have been taken to strengthen the supply side and merchants.

Therefore, eliminating or weakening the preferential currency is a necessary and vital measure for the country’s economy, but the manner in which it is implemented is more important than the policy itself. Also, this policy was implemented at the worst possible time and in the most undesirable way, and so far it has achieved nothing other than disrupting the input market.