Iranian MP: Dollar Rate has Troubled Iran’s Car Market

Dollar Rate has Troubled Iran's Car Market

Seyed Hadi Hosseini, member of Iran’s parliament, believes the current crisis of foreign exchange rates in Iran has made many troubles for the manufacturers of cars and it has caused the increase in cars’ prices.

“Iran’s car market has got into a big trouble and it is mainly because of the high fluctuations in exchange rates. Local car makers must import their necessary raw materials and spares from other countries and this cost them much.” Seyed Hadi Hosseini answered a question regarding cars’ prices in Iran.

“If foreign exchange rates against Rial reduce, the price of produced cars will be diminished too. At this moment government must provide the needed foreign currencies to local producers and car makers. In this current condition we cannot impose producers to sell their manufactured cars at low price.” Seyed Hadi Hosseini reiterated.

“Raw materials, energy and manpower are three main factors determine the price of a production. If we impose certain price for producers, they will stop manufacturing.” Seyed Hadi Hosseini added.

The exchange rate of Dollar against Iranian Rial has been increased dramatically in the recent six months due to the recent heavy financial sanctions applied by United States against Iran over its controversial nuclear program.

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