13 April 2015 - 15:13
  • News ID: 238515
Single Rate Mechanism Can Boost Petchem Trade

TEHRAN April 13(Shana)--Managing director of the National Petrochemical Company (NPC) has said that the ongoing system of dual foreign exchange rate for trading petrochemical products has created numerous problems for the industry expressing hope a single foreign exchange rate mechanism will replace it to facilitate trade.

NPC chief Abbas Shari-moqqadam further noted that creating a single foreign exchange rate mechanism has many advantages including boosting trade in the sector.

He continued: "While petrochemical complexes can export their products based on free market foreign exchange rates, they avoid offering their products in the domestic market or selling them to other petrochemical complexes based on a foreign exchange rate below free market."

He stated that lack of legal infrastructures is another factor that bars producers and consumers from doing long-term transactions, so that petrochemical industry has no clear image or analysis pertaining to future transactions.

Shari-moqqadam concluded that signing long-term contacts and setting a specific price for feedstock will be a good contribution to downstream industries for doing business at Iran Mercantile Exchange (IME).

News ID 238515

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