According to the International Exhibition of Iranian Stone, perhaps until just two years ago, few people thought that the dollar exchange rate would reach more than twenty thousand tomans, but it seems that the value of the rial has fallen sharply. So much so that the dollar also broke the record of twenty-two thousand tomans.

This unprecedented growth has caused great concern in the hearts of the people and economic activists. Undoubtedly, the success of any kind of economic activity requires stability. Calmness in the foreign exchange market is also one of the most important things that disrupt the stability in the market and disrupt the process of producers' activities and the realization of their development vision.

We have now talked to economic actors to investigate the causes of this disruption in the foreign exchange market. Most of these experts believe that international sanctions and a significant drop in oil exports are the main reason for the significant growth of the foreign exchange market, because over the past years, foreign exchange from oil exports has been the main source of supply for the country.

In such a situation, and with the impossibility of selling oil, we are witnessing a significant growth of the currency every day. In such a situation, policymakers are expected to facilitate the business conditions of the private sector, producing producers and exporters to provide the currency in the country.

At the same time, some economists and activists believe that while we are in such a situation, we should make the most of this opportunity. In other words, in such a situation, exports are taken into consideration and the ground for its further development is provided. It has been observed many times that even some of the world's most powerful economies have used the policy of reducing the national currency to increase exports and increase imports.

Exports at daily rates

Bahram Shakoori, head of the Mining and Mining Industries Commission of the Iranian Chamber of Commerce, said: "The devaluation of the national currency does not in itself have positive consequences for the country's economy, because it is a weakness in economic foundations." However, this opportunity can be used to expand exports and reduce imports, to the point that in some cases some developed countries use these tools to expand their exports. That is, with the devaluation of the national currency, they increase the desire of foreign buyers to buy, while imports to these countries become more expensive and decrease. In fact, the adoption of this policy will pave the way for a positive trade balance. As in many cases, China has devalued the yuan to the point that some differences between China and the United States go back to this issue. That is, the United States believes that China is deliberately devaluing its yuan, and this policy is causing the United States to face a trade deficit. Even at one point, Japan devalued the yen to increase its exports.
Now in our country, the value of the national currency has decreased due to inflation created in society. In such a situation, the current situation should be used as a tool for export development. As has happened in the current situation. That is, rising exchange rates have changed the conditions of many export-oriented manufacturing firms, whose activities have not been economically viable in the past. In such a situation, the export has returned these units to the production circuit or the units that were on the verge of closure have returned to the production process. However, an important part of production in our country depends on imports. Imports of equipment, parts, machinery and even raw materials are among the main requirements for a production process. Of course, these imports need currency. In addition, according to the policies of the Central Bank, registration of orders and allocation of currency is a long and difficult process. Finally, these producers are forced to import their desired goods in expensive currencies. This also affects some of the positive effects of export development. But in spite of all the above, the devaluation of the national currency has caused various economic sectors, especially in the mining and mineral industries, to find economic justification in production and exports.

Private sector development, rescue version

The head of the Mining and Mining Industries Commission of the Iranian Chamber of Commerce said: "The only way to save the country from the economic crisis is to develop the activities of the private sector." Therefore, government policy makers are expected to facilitate the start-up of production activities, facilitate the production process, facilitate production, exports, imports, etc. to improve the situation. Undoubtedly, if production and exports continue to increase, the currency generated can be used to meet the country's needs. The supply and demand for currency supply its price. For years, revenues from oil exports have been the main source of foreign exchange in our country; Therefore, the government has also controlled the foreign exchange market. But now international sanctions against Iran have blocked oil exports and the return of currency. Therefore, in such circumstances, it has become difficult for the government to control the foreign exchange market.

He added: "In such a situation, the basic solution to the challenge in question is to take advantage of the order of the Supreme Leader of the Revolution to fulfill the slogan of production jump." That is, in the shadow of the growth of production and exports, the country's need for foreign exchange will be met. The government also hopes for non-oil exports in the current poor economic climate. The mining and mineral industries account for 33% of the country's non-oil exports; Therefore, the government can play an effective role in improving the country's economic situation by strengthening this sector. If the government makes efforts to implement privatization in the true sense of the word, or increases the share of private companies in the economy by transferring management from ownership to the private sector, it will continue to facilitate and enforce barriers to production and continuous improvement. Business environment Many of the current challenges in providing foreign exchange will be met, because in the first step, relying on domestic capacities will enable the growth of production. In the next steps, the import of foreign currency can be increased by increasing exports. Undoubtedly, in such a situation, with the increase in the supply of currency, its price will be balanced. In fact, the government has the task of facilitating, which unfortunately is not implemented in many cases.

The real producer returns his currency

"Corruption exists in all sectors, as if we are even witnessing the presence of corrupt people in the judiciary," Shakouri said of the role of economic actors in this instability. The private sector is no exception. This means that some private sector actors may also seek to make a profit and take advantage of these unhealthy conditions. However, the real private sector is far from making such accusations. Even some of the economic corruption committed by some activists attributed to the private sector should be considered as corruption in the economic body of the country.

Regarding the accusations leveled against the private sector for the return of currency, he said: "Every producer must return the currency from the export of its products in order to continue its activities." However, it sometimes does not use the systems set by the government to return the currency, as there is a significant difference between the price of the currency in the systems announced by the government and the currency in the open market. Exporters also have no good reason to sell their currency at a lower price. But this producer has a considerable cost in Rials. Employee salaries, supply of raw materials, taxes, etc. are among the most important Rial payments of a production complex. If a producer does not return his export currency, how can he cover these costs?

Currency instability is the scourge of industry

Ali Mohammadi, CEO of Khuzestan Steel Company, stated: "Without a doubt, creating stability in the market will guarantee profitability." An increase in the price of a currency may in the short run provide the basis for the profitability of operating in a group, but in the longer term it will lead to problems. Including the fact that the cost of raw materials, transportation, purchase and maintenance of equipment increases, in such cases, the cost price increases. It should be noted that the domestic market may not have the traction of this price growth. It is important to note that the stability of the exchange rate is desired by economic actors and producers, because in the shadow of this stability, it is possible to plan to continue the activity. Stability and calm in the market guarantee profitability and sales continuity. Steelmakers and producers of strategic products must realize their future long-term planning and vision in a calm and stable environment. For example, Khuzestan Steel Complex has planned to produce three and eight million tons of steel ingots for this year. One of the factors in achieving this volume of production is the stability of projected costs.

 The CEO of Khuzestan Steel Company further pointed out: Production in the steel chain is interconnected. If the price of each product increases in the production circles, it will consequently affect the sales rate of other products. For example, if the price of steel ingots rises, it will affect the rate of other long steel sections. It also spreads the rising price trend to other manufactured goods in the market.

Mohammadi, in response to a question about the impact of the dollar rate on the performance of export-oriented companies, said: "In the current situation, oil sales have sharply decreased due to international sanctions." In such circumstances, the export of steel products is of particular importance. In fact, relying on non-oil exports such as steel products, in addition to boosting exports, can bring significant appreciation.

He added: "The price of steel ingots in international markets is commensurate with supply and demand." Therefore, the fluctuation of the dollar exchange rate in the country has no effect on this market. As a result, it cannot be said with certainty that the change in the exchange rate will affect the company's profitability. In addition, as the price of the dollar rises, so does the other production inputs required by the collections.

The CEO of Khuzestan Steel Company continued in response to a question about the negative impact of the growth of the dollar price on the performance of producers: The most important negative effect of the increase in the price of the dollar in the short run is market turmoil and in the long run, the increase in the cost price due to changes in the prices of raw materials for ingot production.