Friday, March 21, 2025
Iran will keep its current subsidized exchange rates for imports of basic goods in the budget for the new year, 1404, according to the country’s chief banker and amid efforts to control food and medicine prices. Governor of the Central Bank of Iran (CBI) Mohammad Reza Farzin said March 1 that the bank will continue to allocate subsidized US dollars at a price of 285,000 rials for medicines and basic food products throughout the calendar year that started March 21.
He said it would also keep its rate for other essential goods, which is not a single fixed rate but varies somewhat, around 680,000 rials per dollar, the rate that has prevailed for the past two months. Farzin made the remarks in response to published rumors saying the government would increase its subsidized exchange rate for food and medicine at least a third in1404.
“The 30% increase in the exchange rate for imports of basic goods and medicines has been canceled in line with efforts to support the people’s livelihood,” he said. In recent years, the government has reduced the list of goods for which subsidized currency is made available. Farzin did not say the list would remain unchanged in 1404.
The CBI governor said that the bank would try to stabilize the semi-subsidized exchange rate that is used for imports of other essential goods, including machinery and equipment needed in the country’s manufacturing sector. CBI figures show the bank allocated $12.396 billion for imports of food and medicine in the 11 calendar months to mid-February.
Some $47.356 billion worth of hard currency was also earmarked at CBI’s semi-subsidized rate for imports of other commodities over the same period.
