TPO reports surge in export gains as forex reforms boost trade flow
A senior Iranian trade official said a significant volume of foreign currency from past and new export commitments is returning to the formal economy, signaling improved liquidity under recent foreign exchange reforms.
“An appreciable amount of export-related foreign currency — from both past obligations and new earnings — is flowing back into the economic cycle,” said Mohammad Sadeq Qannadzadeh, deputy for commercial services at Iran’s Trade Promotion Organization (TPO), ISNA reported.
He added there was “no particular issue regarding the entry of foreign currency into the country,” noting that large companies are also settling past obligations under the new framework.
Qannadzadeh outlined the implementation of the government’s foreign exchange reform package, highlighting its positive impact on trade development and a shift in policymaking approach toward foreign trade. He attributed previous distortions to the existence of multiple exchange rates across different trading platforms.
“The provision of different exchange rates in separate trading halls had created an exchange rate rent in the country, which fostered widespread corruption and strongly discouraged exporters from repatriating their earnings through official channels,” he said.
Under the new policy, approved by the government’s economic team, all foreign currency transactions are now centralized in a single trading hall with a negotiated rate aligned closely with market prices. “This allows exporters to benefit directly from the export process by offering currency at a rate close to the market value,” Qannadzadeh explained.
The policy’s main thrust is a shift from allocating foreign currency at the beginning of the supply chain to transferring subsidies to the end of the chain and the final consumer.
The official pointed to developments over the past two weeks as evidence of the policy’s early success. “Signs of this strategy’s implementation confirm that a considerable amount of foreign currency has returned, import financing for essential goods is underway, and the commercial foreign exchange hall has performed relatively well.”
Qannadzadeh noted tangible improvements, including the re-entry of money exchange offices into formal currency transfer operations and enhanced foreign exchange facilitation mechanisms.
The TPO also reported that strategic reserves of essential goods — which had declined in recent months — have begun to recover. “In recent weeks, following the policy shift, a significant volume of essential commodities has been imported and is now ready for offloading and storage at ports, which is a very positive development,” Qannadzadeh said.