The full text of the three-emergency plan of resistance economy; From currency stabilization to production support
The 3-urgency plan of resistance economy in 24 articles, with the focus on stabilizing the exchange rate, reforming the banking system and supporting domestic production, was uploaded to the Islamic Council system.
According to Mehr reporter, with the continuous follow-up of the Philosophical Agreement, the representative of the people of Tehran in the Islamic Council, the three-emergency plan "Resistance Economy" in the form of 24 articles was uploaded by the Deputy of Laws of the Islamic Council in the comprehensive legislative system of the Council to be available to the representatives for signing.
This plan, which was developed with the aim of creating economic stability, curbing inflation, strengthening the value of the national currency, reforming the currency and banking system, supporting domestic production and reducing the dependence of the country's economy on the dollar, predicts extensive changes in various economic fields.
Among the most important axes of this plan, we can point out the stabilization of the official exchange rate, the ban on foreign exchange transactions outside of the announced rate of the Central Bank, changing the mechanism of returning foreign exchange from exports, reforming the pricing policies of energy and raw materials, zeroing the nominal bank interest rate, revising the subsidy payment system and supporting the agricultural sector.
The full text of the "Resistance Economy" three-emergency plan is as follows:
Honorable President of the Islamic Council
Respectfully, the following plan is submitted for legal procedures.
The Martyr Leader of the Revolution Imam Khamenei (RA): (The true solution to the country's problems is a resistance economy, and if all the ways in the world are open to us, but the country's economy is not endogenous, then this equation is ultimately a failed equation. 6/23/2015). (If the officials and the people can realize a resistance economy in the true sense and free the country from the financial and monetary magic of the enemy and break the value and majesty of the dollar in economic life, they will have saved other countries and will be an example for them. 28/6/2015)
The message of the Supreme Leader of the Revolution (Madazla Al-Ali) on the occasion of the beginning of the third year of activity of the twelfth parliament: (Now, the members of the parliament, focusing on the slogan "Resistance economy in the shadow of national unity and national security" in 1405, should put economic stability, inflation reduction, liquidity management, production boom and reform of the law of the 7th progress program as the main agenda and draw a roadmap for the movement of the government and other sectors).
Resistance economy complements military and social authority. After proving Iran's military authority in the third imposed war and the social authority of people's presence in the squares and streets, now we need economic authority by operationalizing resistance economy policies in the shadow of national unity and national security. Resistance economy was a macro-theory that was first proposed in 2009 by Imam Shahidman; Its policies were announced in 1392 and the two years 1395 and 1396 were respectively named "Resistance Economy, Action and Action" and "Resistance Economy of Production and Employment"; And the year 1405 was decorated with the slogan "resistance economy in the shadow of national unity and national security". The resistance economy is realized by strengthening the internalization of the country's economy while extroversion, creating economic justice, people-based and adopting a jihadist approach. Resistance economy is the concept of symptoms of the destructive policies of the International Monetary Fund and it is achieved by abandoning shock therapy and by strengthening the value of the national currency and de-dollarization of the national economy. With the emergence of the new Iran as a military superpower, now is the time to strengthen Iran's economic authority. In the implementation of paragraph (15) of the general policies of the legislative system announced by the Martyr of the Revolutionary Leader, based on the determination of legislative priorities with the focus on untying the country's executive affairs, the unimplemented principles of the constitution, the vision document, the general policies of the system, the five-year development plan and the demands of the leadership, the "Resistance Economy" legal plan is submitted to the Islamic Council with three terms of urgency.
Article 1 - Clause (t) of Article (20) of the Law on Permanent Decrees of the Development Programs of the Country approved on 10/11/2019 is amended as follows:
T- In the implementation of paragraph (9) of the general policies of the resistance economy based on reforming and strengthening the financial system of the country with the aim of establishing stability in the national economy and paragraph (2) of the general policies of the 7th plan regarding the establishment of stability in the exchange rate, the currency system of the country is "stable". The exchange rate in this system is determined with the aim of maintaining and strengthening the value of the national currency, curbing inflation, creating stability and economic growth in a fixed and fixed rate.
Article 2 - Clause (a) of Article (44) of the Law on the Central Bank of the Islamic Republic of Iran approved on 3/30/1402 is amended as follows:
A- The currency system of the country is "stable" and the goal mentioned in part (4) clause (b) of article (3) of this law must be pursued within the framework of this currency system. The central bank of the Islamic Republic of Iran is the authority for providing all foreign exchange needs, pricing and announcing the official exchange rate in the country, and only the central bank is authorized to manage foreign exchange transactions in the country. The free market exchange rate is a smuggled and illegal rate, and any recognition of it and adherence to this illegal rate in determining the official exchange rate of the country by the Central Bank is prohibited.
Article 3 - In the implementation of Part (4) Clause (B) of Article (3) of the Law on the Central Bank of the Islamic Republic of Iran approved on 30/3/1402, the Central Bank is obliged to gradually and daily reduce the official rate of the country's currency (the dollar rate of the current exchange center) within a period of two months, and after the end of the two-month period, stabilize the official rate of the currency at the number of twenty-eight Rials and Fifty Korans 28.50 (currently 285,000 Rials) for five years. After this period, the Central Bank It is allowed to correct and stabilize the official exchange rate in order to strengthen the value of the national currency.
Note - The base exchange rate in the annual budget of the country and the base exchange rate for customs calculations must be equal to the official exchange rate of the country.
Article 4 - In the implementation of Article (3) of this law, the Central Bank is obliged to provide, in cooperation with the National Bank of Iran, the Ministry of Economic Affairs and Finance, and the Securities and Exchange Organization, a mechanism for the purchase of foreign currencies by natural and legal entities in the following two ways:
1- Rial and cash purchase of foreign currency at a reduced rate by foreign exchange branches of National Bank of Iran throughout the country within a period of two months. After the end of two months, the currency purchase rate for a period of five years is 28 Rials and 50 Korans 28.50 (currently 285,000 Rials).
2- Buying foreign currency in foreign exchange branches of the National Bank of Iran at the official rate of the country's currency and granting government bonds, participation bonds in financing half-finished and strategic construction projects and reconstruction of war-damaged industries, and bonds of state-owned enterprises and companies equivalent to the value of the purchased currency to currency sellers after the end of the two-month period for cash purchase of currency at a reduced rate.
Note - In the implementation of Part (21) of Article (4) of the Law on the Central Bank of the Islamic Republic of Iran approved on 30/3/1402, the Central Bank and the Ministry of Economic Affairs and Finance are required to liquidate the foreign exchange investment fund. Any actions and foundations aimed at weakening the governance of the national currency and strengthening the competitors of the national currency by encouraging people to buy and hoard foreign currency and gold or investing in foreign currency and gold are prohibited by the Central Bank, the Ministry of Economic Affairs and Finance, and all the executive bodies of the country.
Article 5 - In line with the implementation of a fixed and single-rate currency system, the central bank is obliged to dissolve the Iranian currency and gold exchange center, the commercial, agreed, etc. currency market within a period of two months. It is prohibited to create any currency exchange center, market and system for direct exchange of currency by the central bank.
Note - Part (2) of Clause (A) of Article (11) of the Seventh Development Program Law is amended as follows:
2- All exporters of goods and services in the country, without exception, are obliged to fulfill their foreign exchange obligations only by selling one hundred percent (100%) of the currency obtained from exports to the Central Bank.
Article 6 - The central bank is obliged to single-rate common and widely used currencies such as the dollar, euro, yuan, pound, dirham, and the like and stabilize their official rate within the framework of a fixed currency system.
Note 1 - The Ministry of Communications and Information Technology is obliged to identify and block all websites that post and announce unofficial and fake rates (rates other than the official rate of the country announced by the Central Bank) for foreign currencies.
Note 2 - Exchanges with a license from the Central Bank throughout the country are allowed to trade foreign currencies according to the exchange rate announced by the Central Bank with a two percent (2%) profit.
Note 3 - The Central Bank is obliged to purchase all the foreign currency obtained from non-oil exports of the country at the official rate of the country's currency from all exporters.
Note 4 - The Central Bank is obliged to provide the foreign currency needed by importers for the import of basic goods, primary production materials, intermediate goods, medicine and medical equipment and other essential needs of the country at the official rate of the country's currency. Any import of goods and their clearance from the customs of the country without determining the origin of the currency and without providing the currency by the central bank and the official currency network of the country is prohibited, with the exception of goods clearance.
Article 7 - In the implementation of paragraph (19) of the general policies of the resistance economy, the following text is added as paragraph (x) to the repeated article (2) of the Law on Combating Smuggling of Goods and Currency approved on 3/10/2013:
K- Conducting any foreign exchange transaction based on a rate other than the official rate of the country's currency announced by the Central Bank, including smuggling and unofficial free market rates, virtual space rates, foreign rates and the like.
Note 1 - Note (6) of Article (2) of the Law on Combating Smuggling of Goods and Currency approved on 3/10/2019 is amended as follows:
Note 6 - All exporters of goods are required to sell one hundred percent (100%) of the currency included in the customs license or its currency equivalent in other currencies to the Central Bank within a maximum period of sixty (60) days from the date of issuance of the customs license. In addition to being required to fulfill the obligation of the violation, the violator is sentenced to a fine equal to one-fifth of the violation and two or more of the exclusions of Article (69) of this law. In case of non-fulfillment of the obligation within three months from the notification of the final judgment, the equivalent of the value of the obligation at the time of the issuance of the judgment will be added to the offender's fine. If the non-fulfillment of the obligation subject to this note and notes (5) and (7) is determined by the investigation authority to be due to the Cairo authority (foreign unforeseeable and unavoidable incident), the condemnation subject to these notes will not be applied.
Note 2 - All the exporters who have not completely settled their foreign exchange obligations since the beginning of 2017 and thereby caused disruption in the country's economic system have a six-month deadline to fulfill their foreign exchange obligations by returning the currency in full and selling it to the Central Bank, otherwise the judiciary is obliged to identify the violator exporters and impose legal punishment according to Note (6) and (7) of Article (2) of the Law on Combating Smuggling of Goods and Currency.
Note 3 - Determining any exemption for the return of foreign currency from non-oil exports is prohibited, and foreign exchange contracts must be fully and 100% applied to all goods and exporters. Also, selling foreign currency from exports in the open and informal market and investing abroad using foreign currency from exports by exporters is prohibited.
Note 4 - Exporters who do not fulfill their foreign exchange obligations within the legal deadline, in addition to the punishments specified in the Law on Combating Goods and Currency Smuggling, are not allowed to leave and export their products from the country. The country's customs organization is obliged to prevent the export of the products of the offending exporters until the full settlement of foreign exchange obligations. The clearance and export of the mentioned goods is unimpeded after the full settlement of the foreign exchange obligations and the notification by the central bank to the country's customs organization.
Article 8 - With the aim of eliminating competitors of the national currency and preventing the wastage of the country's gold resources, it is prohibited to mint any gold coins, sell gold bullion, gold bullion and non-ornamental gold by the Central Bank and all banks.
Note 1 - It is prohibited to advertise the purchase of gold and conversion of national currency to gold on public roads, radio and television, and in cyberspace. The Ministry of Communications and Information Technology is obliged to block the offending platforms, software and web pages.
Note 2 - The Central Bank is obliged to announce the price of all types of gold coins on its website in order to facilitate the payment of the Riyal equivalent of the coin price by the debtors and those sentenced to pay dowry.
Article 9 - The Central Bank is obliged to provide, in cooperation with the National Bank of Iran, a mechanism for the purchase of non-ornamental gold, including gold bars, gold bullion, raw gold, molten gold from natural and legal persons through rial and cash purchase of non-ornamental gold at a reduced rate (corresponding to the reduction of the exchange rate) in Rial branches of the National Bank of Iran throughout the country within a period of two months.
Article 10 - Conducting any economic transaction within the country where the price and consideration of the transaction, competitors and substitutes of the national currency include gold, gold coins, foreign currency, foreign currency tokens and the like, is prohibited and such transactions cannot be pursued legally. Transactions before the effective date of this law are valid, and the exchange of goods for goods is excluded from the scope of this article. Converting movable and immovable assets into national currency or Rial code and conducting transactions with it under the supervision of the Central Bank is allowed and valid. The central bank is obliged to provide the implementation mechanism for the use of the national currency within six months.
Article 11 - The Central Bank is obliged to completely remove the US dollar from the service currency supply cycle of the country and through the foreign exchange branches of state banks and authorized exchanges, provide all types of service currency with the national currency of the travel destination country. Provision of service currency for travel to countries whose common currency is the US dollar or have a small number of travelers or it is difficult to provide the currency of that country should be done with universal currencies other than the US dollar.