Central Bank of Iran Insists on Export Revenue Repatriation in Foreign Currency

Governor of the Central Bank of Iran says the government is opposed to the repatriation of export earnings in rial as it would weaken the economy.

Financial Tribune- “It does not make sense to repatriate earnings in rial. When you export to a country, the earnings should return in the national currency of the importing country,” or any other major currency, he told state TV on Friday.
“When export earnings are returned in rial, it is akin to bleeding of the country, which gradually weakens the economy”.
As far as the government is concerned, export in rial is tantamount to capital flight. Hemmati argued that returning export earnings in rial means goods manufactured in the country and the added value flows out of the country.
Exporters to some neighboring countries especially Iraq and Afghanistan have always complained that their bills are paid by the importing companies in rial rather than foreign currency (not even in afghani or dinar) and therefore they should be exempt from currency repatriation rules.

Publish Date: Aug 11, 2019