Letter of 3 large manufacturing association to the president in support of the new currency decision

Cement Industry Employers’ Association, Petrochemical Industry Employers’ Association and Oil Refining Industry’s Employers’ Association as the country’s three largest associations in a letter to President Ayatollah Seyed Ebrahim Raisi called the government’s new foreign exchange measure a brave, wise decision and in line with the country’s national interests. .

According to Energy Press, the text of the letter of these three associations, which was published on Tuesday, the 14th of September, is as follows:

Mr. Dr. Raisi, President of the Islamic Republic of Iran

Greetings and Regards

Recently, the Cabinet of Ministers took an admirable step towards equalizing the exchange rate based on the calculation of the price of gas and liquid feed of petrochemical companies and refineries, as well as the products of these industries in the commodity exchange (based on the remittance rate of Iran’s Gold and Currency Exchange Center). Before this approval, this rate was 28,500, which caused significant sources of government revenue to be reduced from the sale of crude oil and feed to petrochemical and gas units of various industries.

Since basically the price of the final products of petroleum, petrochemical, mineral and metal product chains was determined not based on the cost price but on the basis of the real exchange rate and the inflation rate, therefore, these huge resources lost from the government’s income have a significant effect in There were no people at the table and it only created the basis for rent and corruption in the production chains.

The recent resolution, while restoring the rights of the people, from the improvement of the government’s income due to the actualization of the exchange rate, the basis for calculating the price of refinery feed, petrochemical and gas in the mining and metal industries, to the elimination of rent in the products of these industries and the possibility of the departure of manufactured goods from the country and the improvement of the exchange rate Inflation will result from reducing the government budget deficit.

Although this decree has increased the cost of large industries for the benefit of the government, but since it is in line with the realization of prices and the elimination of shadow prices in intermediate goods, it is considered a desirable and admirable measure.

We have not forgotten that the long-term stabilization of the exchange rate of 4,200 by the previous government imposed a heavy cost on the system that could not be sustained and its removal, despite all its short-term effects, resulted in great achievements for the country’s economic system and was a good experience for the honorable government board to The timely reform of the 28,500 Toman currency from the chain of oil, petrochemical, mineral and metal products will take another step in improving the macroeconomic variables of the country.

This brave action of the respected government board is a wise decision and in line with the national interests, and we economic activists expect that the respected government will be based on rational decisions based on its economic principles, regardless of some uproar.