Car imports devour the country’s foreign exchange resources / postpone the idea until at least 1401

EconomyOnline – Mehdi Beyk; Referring to the general trend of car imports, the representative of the people of Zanjan said: “The issue of car imports is a necessity that the representatives, after careful evaluations, followed its approval in the form of Article 4 of the reorganization plan.” Despite the fact that some people thought that the parliament might delay the passage of this article, the deputies voted for it due to the fact that they felt that this decision was in the interest of the people and the general supply and demand systems of the car market. Therefore, both the representatives and the executive officials do not disagree with the principle of this issue.

Taheri, noting that it is not possible to import cars this year, said: “Studies show that the process of importing cars, at least in the second half of this year will not be possible.” Of course, if the country’s economic indicators improve in the first half of 1401 and good foreign exchange resources are stored in the country, it can be planned to import cars in the future.

He added: “Because the car is a valuable commodity, other countries do not restrict its import to our country, even during sanctions.” Because car imports devour the country’s foreign exchange resources and create inflationary shocks in times of crisis. Even if the parliament provides solutions for importing cars only through exchange rates or currencies stored in foreign banks, some traders will still use domestic currencies to import cars.

Is the car a secondary need?

Member of the Parliamentary Committee on Industries in response to the question of when is the right time to import a car? It was reminded that in order to import cars in the first place, there must be sufficient foreign exchange resources in the country. In fact, the country’s oil and non-oil exports should flourish and the currencies derived from exports should be imported so that Iran can meet its import needs. On the other hand, the first priority is import with intermediate and raw materials, inputs, drugs, etc. After that, it is time to discuss car import as a secondary need.

Taheri added: “But in the current situation where Iran is facing foreign exchange shortages and no foreign exchange surplus, the lack of accurate foreign exchange monitoring, causes the country to face widespread currency smuggling as soon as the car import license is issued.” Of course, in Article 4 of the Law on Organizing the Car Market, it seems that it is planned to import cars using export currencies and currencies stored abroad, but detailed studies show that traders use legal loopholes and collect currency in the country’s markets to import cars. They will collect.

In response to a question from an online economy reporter, what will be the result of such a process? He said: “The objective result of any shortage in the foreign exchange market will lead to fluctuations in the exchange rate, and as a result, the prices of goods and services in the country will suffer from severe inflationary shocks.” It is with such arguments that even the proponents of this plan have agreed to postpone the implementation of this idea for the future perspective, which will probably be 1401.

The representative of Zanjan in the parliament added: in clearer terms and from the expert point of view, the law that is being announced needs a suitable hospital for proper implementation. A good platform for car imports is a normal currency situation. In a situation where the country is facing a currency shortage, the promulgation and implementation of this law increases the risk of currency fluctuations in the economy, so it is better to postpone this idea until the conditions for this necessity improve.

Taheri concluded: “Of course, these statements do not mean that the delegates believe in the effects of this idea on ‘improving the quality of the automotive industry’, ‘making the market more competitive’ and ‘ending monopolies’ and, most importantly, the people’s demand for a They have lost the “safe”, “cheap” and “quality” car. But it seems that this program will not be operational in the short term and we should think about its implementation for next year.