Economy minister says the government’s move to unify the exchange rate and scrap preferential currency allocations was a long-standing demand of the private sector and would ultimately support production and boost national income.
Speaking at a meeting of the Government-Private Sector Dialogue Council in Iran Chamber of Commerce headquarters in Tehran on Monday, Ali Madanizadeh said the policy to establish a single exchange rate and organize the currency market was export-oriented and would benefit the productive sector, paving the way for broader economic reforms, including the removal of state-imposed price controls.
He said shifting subsidies from the beginning to the end of the supply chain would eliminate mandatory pricing, easing constraints on the private sector and allowing market mechanisms to function more freely. The effects of the policy would become clearer in the coming months, he added.
Madanizadeh said the reform was aimed at promoting economic justice, reducing inequality and ensuring fairer wealth distribution, adding that it had delivered positive welfare effects for eight income deciles.
He also said the policy would cut the dependence of basic goods supply on oil-linked foreign exchange.
Controlling inflation remains the top priority of the economy ministry and the central bank, he said, acknowledging that the plan was implemented under difficult conditions and more abruptly than originally intended, but stressing that authorities were managing the process.