ZCZC
BCN-30
IRAN-NEW-FOREX-POLICY
New forex policy frets Iran’s auto parts makers
TEHRAN, Aug. 12 (BSS/Xinhua) — Iran’s auto parts makers expressed deep
concerns over the fate of their business due to the new forex policy, local
media EghtesadOnline reported Sunday.
Abdolnasser Hemmati, newly appointed governor of the Central Bank of Iran,
announced last week new state monetary policies to heal the hobbled forex
market.
According to the new policies, the government will no longer grant
subsidies in U.S. dollars at a discounted rate to imported items except for
essential goods and medicines.
Auto parts makers believe the latest policy does more harm than good to the
beleaguered sector as auto parts and the raw materials used by local
manufacturers are not considered essential.
“Following the implementation of the new monetary policy, a hike of 80 to
140 percent in prices of auto parts is foreseeable,” said Arash Mohebinejad,
spokesman of Iranian Specialized Manufactures of Auto Parts Association.
Carmakers and distributors “owe an outstanding debt of some 3.5 billion
dollars to parts makers from which 1.1 billion dollars are overdue,” he
explained.
A total of 100 domestic auto parts makers have either closed their
production facilities or put their business on hold because of the unstable
state of affairs, Mohebinejad noted.
U.S. President Donald Trump withdrew Washington from the 2015 landmark
Iranian nuclear pact in May, causing volatility in various markets in Iran.
Since then, the value of the Iranian rial has plunged to unprecedented
lows, wreaking havoc on its import-dependent industries.
BSS/XINHUA/SR/1925 HRS