Central Bank of Iran disputes car import priority amid currency scarcity

A dispute has emerged between the Central Bank of Iran and car importers regarding the prioritization of foreign exchange resources for vehicle imports. Mehdi Darabi, assistant to the Governor of the Central Bank, stated that under current resource constraints, car imports are not a priority for currency allocation. He noted that while the bank does not strictly oppose imports, the high cost of luxury vehicles poses a significant challenge to managing limited foreign exchange reserves.

Darabi also addressed the use of personal foreign currency or funds from Iranians living abroad. He argued that even if importers use external funds, the subsequent sale of vehicles in the domestic market leads to the conversion of rials back into foreign currency to cover capital, profits, and taxes, thereby still impacting domestic currency demand.

Hadi Malekan, head of the Car Importers Association, responded by emphasizing the government's role in setting import rules. He argued that since the state collects revenue through tariffs, entry fees, and taxes, it is inconsistent to blame importers for the resulting pressure on foreign exchange reserves. Malekan maintained that policymakers hold the authority over import ceilings, tariffs, and currency origin regulations.