In a recent radio interview, Amir Alijani stated that during the latest meeting of the Foreign Investment Board, an unprecedented $5 billion in foreign investment was approved. This meeting was notable for two reasons: it reviewed 77 foreign investment applications in a single session and marked a significant increase in investment volume.
Alijani emphasized the necessity for coordination among various entities to eliminate barriers to investment. One critical obstacle that has been addressed is the establishment of an agreed exchange rate, allowing foreign investors to import resources at a rate more favorable than the NIMAI exchange rate, thereby enhancing the attractiveness of investing in Iran.Currently, Iran operates with three exchange rates: the open market rate, the official rate, and the NIMAI rate. The NIMA system, introduced by the Central Bank of Iran in April 2018, facilitates currency transactions for licensed importers and exporters.In the Iranian calendar year 1401 (March 20, 2022 – March 20, 2023), parliament eliminated the preferred currency exchange rate of 42,000 rials per USD. Since 2018, approximately $10-15 billion has been allocated annually at this subsidized rate to food importers, significantly lower than both free market and semi-official rates.
To further enhance investment appeal, Alijani noted that promoting investments in export-oriented projects is essential. He acknowledged that while challenges exist for investors looking to bring capital into Iran, these hurdles are not insurmountable. He assured that there are no significant barriers regarding non-cash capital entry and that channels for cash capital transfer have been successfully diversified.
Additionally, Alijani mentioned that gold and gold bars have been approved as forms of capital investment, with the Central Bank preparing relevant guidelines for this process.
The Iranian Investment and Economic Technical Assistance Organization plays a crucial role in advising and guiding the private sector on attracting foreign capital. Alijani stressed that it is vital for Iran's private sector to transition from short-term business relationships to long-term investments. This shift presents two main benefits: it allows for comprehensive studies to ensure project profitability and enables the government to provide necessary guarantees related to both principal capital and investment profits.