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FOREIGN
EXCHANGE POLICIES AND REGULATIONS
The exchange market
and exchange rate policies in 2000/01 and the first quarter of 2001/02
were aimed at maintaining a relatively stable nominal exchange rate,
with liberalization of exchange regulations. One major development
in the foreign exchange system of Iran in recent years was
the elimination of export rate (Rls. 3,000 per US$) and the establishment
of a fully functioning market for foreign exchange transactions
in Tehran Stock Exchange. As of the beginning of this new system
(March 2000/01), the exchange system is principally based on two
exchange rates; an oil-notional rate which is solely applied to
government budget, approved specific transactions, and a non-oil
export rate which is used for other foreign exchange transactions.
As of the beginning of 1379 and the first quarter of 1380 the following
policies have been implemented:
1. Non-oil exporters
are entitled to receive certificate of deposits (CDs) after the
surrender of foreign exchange to their agent bank. Hence, the foreign
exchange certificate of deposit was substituted for import certificate.
These CDs can be used to open letter of credit for import purposes,
to be sold either through TSE to other importers, or directly to
agent banks within three months of the issuance of CDs.
2. The manufacturing
units are allowed to import raw materials, spare parts and other
required equipment against export of their own products, and settle
their foreign exchange obligations through this mechanism.
3. The minimum deposit
requirement for the opening letters of credit for imports by non-public
sector was reduced to 10 percent.
4. Following the
phased expansion of the “positive import list” from authorized imports
with non-oil export receipts, the “positive list” was effectively
replaced by a “negative list” at the end of 1379 and beginning of
1380. In line with the targets set in the 3rd FYDP, all non-tariff
barriers, quotas and certification procedures (except for obligatory
standard reasons) by line ministries and specialized government
agencies for imports of raw materials and industrial products (except
for car and transportation vehicles), were eliminated and replaced
by commercial benefit taxes.
5. The exporters
who export and settle their accounts through banking system are
exempted from pledging collaterals or advance payments. The export
ceilings on uncollaterized non-oil exports with regard to surrender
requirements will not be applied to exporters who settle their accounts
through banking system, exporters with more than five years of experience
and with good reputation and approval of Export Promotion Center,
and the exporters of technical and engineering services. Moreover,
exports of all non-oil goods and services were exempted from all
taxes and customs duties in line with the guidelines of the 3rd
FYDP.
6. In line with policies
of the 3rd FYDP, upto fifty percent of accumulated deposits in government
Oil Stabilization Fund could be lent to non public sector. However,
banks should collect sufficient guarantees to ensure that repayments
of the facilities will be made in foreign exchange. As of the beginning
of 1380, banks were allowed to extend foreign exchange facilities
from OSF resources to non public sector. The individual ceiling
for real persons was set at five million US dollars.
7. The regulations
on LCs at CD rate were facilitated and simplified. Banks were authorized
to extend the maturity of opened LCs at CD rate and endorse import
documents with minor discrepancies.
8. The ceilings and
foreign exchange quotas of universities and research centers for
registration and subscription fees and other payments to international
conferences and seminars were eliminated. Moreover, sale and transfer
of foreign exchange by banks to local corporations and organizations,
government agencies, real and legal persons for international conferences
and organizations, were allowed at negotiated rates.
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