Adjusting Currency Policies Essential to Preserve Zanjan's Production and Export Capacity

Zanjan – Deputy Governor for Economic Coordination of Zanjan Province said adjusting currency policies is essential to preserve Zanjan's production and export capacity.

According to Mehr reporter, Narges Muradkhani said on Wednesday at the meeting of the dialogue council between the government and the private sector of Zanjan province: the problems related to the settlement of foreign exchange obligations have continued since 2017 and despite the passage of several years, economic activists are still facing similar obstacles. Therefore, a decision must be made to solve this problem at the macro level of the country.

He added: the current mechanism of calculating and returning foreign currency from exports does not match the actual costs of production. Producers obtain currency at a higher rate to provide raw materials, but the currency obtained from the export of their products is calculated at a lower rate and offered to the government; An issue that has created a significant gap between production cost and export income.

The Deputy Coordinator of Economic Affairs of the Governor of Zanjan stated: The consequences of this rate difference have affected the economic power of manufacturing companies. The dimensions of this problem are clear to the authorities and related institutions, but no effective solution has been provided to solve it.

Moradkhani continued: Issues related to the settlement of foreign exchange obligations should be followed up by providing detailed documentation and expert review through national authorities so that decisions are made based on the real conditions of producers and exporters.

Referring to the economic capacities of Zanjan province, he said: This province has significant capacities in areas such as textile industries, detergents, electronic industries, agriculture, olive and dairy industries, and under normal conditions, its export potential can exceed one billion dollars.

Deputy Governor of Zanjan Economic Affairs Coordination added: According to the estimates, it is possible to realize about 700 million dollars of exports for the province, and by removing the obstacles, correcting cumbersome procedures and facilitating the activities of exporters, these capacities can be actualized.

Muradkhani stated: The existing obstacles should not lead to limiting the export capacities of the province. Realizing the real export potential of Zanjan requires the provision of suitable conditions for the activity of production units, easier access to raw materials and the modification of mechanisms that have increased the cost of economic activity.

He pointed out that the information and documents raised in the specialized meetings should be collected along with the previous follow-ups and presented to the governor in the form of a comprehensive report so that the issue can be raised at the national level and negotiations with the relevant authorities are provided.

Referring to the numerous problems of the production units, the deputy economic affairs coordinator of the Zanjan governor said: economic activists are facing insurance costs, labor challenges, restrictions on the import of raw materials and the difficulty of meeting production needs, in addition to the issues related to the settlement of foreign exchange obligations, and the sum of these factors has made the activities of enterprises more complicated.

Moradkhani added: Referral of foreign exchange liability cases to the judicial system can put additional pressure on producers. Therefore, before making a decision about these cases, the real situation of the companies, the level of fulfillment of obligations and the obstacles that were beyond their control should be carefully examined.

He emphasized: The processing of foreign exchange cases should be done in accordance with the conditions of each economic unit and should be separated between exporters who have tried to fulfill their obligations but faced obstacles beyond their control and other cases based on documentation.

Muradkhani further pointed out the problems of some exporters in the field of temporary entry of goods and blocking of business cards and said: Follow-ups are being continued to prevent the suspension of business cards of affected economic operators so that judicial issues and related cases are determined and the business activities of these units are not stopped.

He expressed his hope that the decisions made in this regard will be implemented by the end of the week with the cooperation of the relevant authorities and that disruptions in the commercial and production activities of the affected units will be prevented.

The necessity of coordinating currency policies with production realities

The Deputy Governor of Zanjan Economic Affairs Coordination found the current mechanisms of the Central Bank in the field of currency management to be reviewed and revised and said: Some policies that are implemented with the aim of reducing dependence on the dollar or changing currency mechanisms may actually put more pressure on producers. Therefore, their real effects on the cost of production, export capacity and activity of economic enterprises should be evaluated.

Muradkhani added: A significant part of economic activists' problems are rooted in the macro-economic structures of the country, and their solution requires national decision-making, but the provincial administration also has the duty to prevent further damage to producers by using existing capacities, coordinating between executive bodies and following up on the demands of the private sector.

Appreciating the cooperation of the judicial system and related officials in dealing with the problems of economic activists, he stated: It is expected that hurried decisions should be avoided in the review of foreign currency obligation cases, and the conditions of each production and export unit should be evaluated according to the documents, the amount of obligations fulfilled, and the existing obstacles.

In the end, the Deputy Governor of Zanjan's economic affairs coordination emphasized: The provincial administration considers it one of its duties to follow up on the problems of producers and reduce obstacles to economic activity, and by collecting documents, strengthening coordination between institutions, and transferring issues to national decision-making authorities, provide the ground for reforming the procedures for resolving foreign exchange obligations and supporting the continuation of production and export development of the province.