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EghtesadOnline: Iranian auto importers, who had brought vehicles into the country when the open market forex rate was significantly lower than the current average of 95,000 rials per US dollar, need to slash the price of the cars they are offering in the market or the government will claim a share of their incomes.

Industries Minister Mohammad Shariatmadari censuring profiteering dealers and auto importers has announced that entities which are exploiting the plummeting value of rial as a pretext to charge car buyers exorbitant sums are required to lower the price of imported cars, ISNA reported.

Since US President Donald Trump pulled the country out of the historic Iran nuclear deal, the value of the rial has plunged to unprecedented lows. In a move aimed at curbing the outflow of foreign currency reserves, the government of President Hassan Rouhani banned imports of several goods calling them non-essential luxuries. Cars have been among the commodities which have been barred from entry into Iran, according to Financial Tribune.

Following the sharp fall in the value of the rial and the introduction of the ban, prices of imported vehicles skyrocketed in the auto market. However, Shariatmadari says importers are required to sell the vehicles at prices announced when the USD exchange rate was under 42,000 rials since the firms had purchased and brought the goods into Iran at that time. He further notes, “In case importers overcharge customers, the government will seize the quick buck they are hoping to make.”

 

Iran US dollar Forex Rate Auto Importers Price Gouging