If the exchange rate of 4200Tomans for USD is removed, the market will calm down.

Feed: 2973 - Date: 7/7/2019 - Views: 160

Stating despite the fact that reasonable foreign currency was allocated to paper imports, the market is still turbulent, the secretary of the Syndicate of Paper and Cardboard Manufacturers said, "The Ministry of Islamic Guidance and the Ministry of Industry, Mine and Trade are not coordinated"

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In an interview with Mehr News Agency, Abolfaz Golpayegani , pointing to the inconsistencies between the two ministries responsible for adjusting the paper market, said, "Although the Ministry of Industry, Mine and Trade has provided some openings for the allocation of foreign currencies to paper import, the main problem is that these two ministries have continuously disputes over the paper import; because it seems that one ministry should be responsible in this area not two ones neither of which will not ultimately accept responsibility and be responsive."
The secretary of the Syndicate of Paper and Cardboard Manufacturers added, "It seems that if only one ministry is in charge of regulating and monitoring the paper market from A to Z, and if it is responsive about its measures, the paper market will be organized; however, although the allocated resources are appropriate, the issue is poorly managed."
He reiterated, "Firstly, the two ministries should be in agreement with each other, and the responsibility of the whole issue should be assigned to one ministry, but the paper market practitioners believe that the Ministry of Industry, Mine and trade can be a better authority to regulate the paper market; secondly, since this ministry only recognizes the importers, exporters and their eligibility, and the Ministry of Islamic Guidance usually confirm the list of the individuals provided by the other one and allocates the quota to them, and everything is done as a matter of course while there is no precise monitoring and control, which adds the market weakness." 
Roghani emphasized, "The resources allocated for paper import have been appropriate, and relatively good foreign currencies have been provided, and at present it seems that there should not be much paper problem on the market, but the cause of high price is the lack of suitable plan."
He pointed out, "One of the main reasons of market problems is the presence of 4200Toman USD exchange rate; I mean, if there is not the exchange rate of 4200Toman, the market will continue its natural and normal trend. Since the USD at exchange rate of 4200Toman was allocated to paper import, publishers and journalist have not benefited the imported paper at governmental rate." 
Roghani Golpayegani believes that the government should change the 4200Toman exchange rate of USD into NIMA exchange rate for paper imports; of course the price may naturally rise slightly, but the high supply of paper on the market will lead to the decrease in demand, which will lead to the exit of economic rents from paper market and more balanced price. At present, the imported paper at 4200Toman exchange rate has been meant to benefit the publishers and journalists, but in fact, the dealers have taken advantage of this rate."
HE said, "The Syndicate of Paper and Cardboard Manufacturers has frequently talked with the government on this issue, and discussed its opinion about the 4200Toman Exchange and the necessity to omit it, but the government have not listened to us and still pursues this wrong policy." 

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