Iran’s government has proposed adjusting the subsidized exchange rate based on inflation for the upcoming fiscal year, a move aimed at aligning currency policy with economic realities, a senior lawmaker said.
In a meeting held on Monday, Mohsen Zanganeh, the vice chairman of a parliamentary commission in charge of mulling the proposed budget bill, stated that the proposal was presented during a session with officials from the Plan and Budget Organization and the Central Bank of Iran to review the government’s currency strategies for the next fiscal year.
Zanganeh noted that exchange rates play a crucial role in the state budget, impacting everything from revenue allocation to the subsidy distribution for essential goods, wheat purchases, and support for pharmaceuticals and livestock inputs.
The exchange rate is also a vital consideration in discussions related to inflation control and other economic indicators, he explained, emphasizing the importance of examining currency policy across multiple dimensions.
The committee has set up a dedicated currency sub-committee to conduct a detailed analysis of the proposed policies and their potential impacts on the economy, Zanganeh added.
Iran allocates foreign currency at subsidized rates for the supply of essential commodities to protect the vulnerable classes of the society.