News ID : 2419
Publish Date : 19 April 2018 - 09:15
Yesterday, the government emphasized on replacing dollar with euro and clarified the currency transactions. Do industries such as auto making and part manufacturing who are struggling with dollar turbulence, have the ability to transfer all of their transactions to euro or not?
Khodrocar – replacing dollar with euro is not a new thing and there were some talk about it since last year. Most of businessmen start to use euro but still dollar transactions is way more than other currency transactions.

Now, these days dollar's price became stable at 42000 IRRs after a sudden rise,  but the government published an instruction to replace dollar with euro.

Automakers and part manufacturers question is, are they able to buy first materials with the current euro price and how they would handle their transactions?

On the other hand, part manufacturers association said that part makers' debts will be paid back over time. It seems that parts makers are going to have a rough year with different challenges for income and costs.

"Exchange rate fluctuation had greats on impacts on port industry and New Year currency turbulence, reduce their decision making power and eager for working." Reza Rezaei told khodrocar reporter.

"In the year of support for Iranian products, we have to produce more encouraging products, but our manufacturers are not eager to do it." He added. "While the country's budget is based on the dollar, we shouldn't change it to the euro because transactions would be more difficult."

"Part industry stood on the 3rd place of GDP during 1395 and it shows the importance of this industry to all economic activities. The government has published the instruction of unified exchange rate, but the auto part market hasn't changed yet." he continued.

He also talked about the effects of 42000 IRRs exchange rate on the part industry transactions and said: "the market should sync with the new exchange rate and since then we can’t predict anything.” Reza Rezaei then mentioned the part manufacturers’ debt and said: "during the past two weeks nothing happened in this matter but some good news heard that the paybacks would be better compared to last year.”

Khodrocar Reporter: Negar Mirkarimi

Khodrocar Translator: Amin Zamani
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