The sharp rise in exchange rates is not supported by exporters

In an interview with ILNA’s economic reporter on the foreign exchange market and its impact on exports, Mohammad Lahouti said, “The increase in the exchange rates has always been one of the main concerns of exporters. Our critique of the government has always been in the context of not increasing the exchange rates in proportion to inflation what is also stipulated in the law, and we do not want more.”

 

The head of the Iran Export Confederation continued, “This increase s effective when it will be intermittent and monotonous during a year; i.e. if the government declares the inflation of 9%, and if the global rate of inflation is 2%, the exchange rates will increase by 7% in a year. Otherwise, the price of our exported goods will rise, and the competitive power of exporters will reduce. However, it is neither reasonable nor desirable when the dollar exchange rate suddenly increases by 20% in an interval of 2 months.”

 

Lahouti specified, “This sudden increase will have a false impact on the price of raw materials and would exclude the opportunity for exporters to export within a period of three or four months because the rates are not real resulted from the increase in false demand. The dollar exchange rate is currently not real and the bubble will soon be empty. It itself is a kind of anti-support for exports, and this model of increase in the exchange rate will be supported by no economic activists. Of course, it is expected that there will be a periodic increase in exports within these two months.”