Dr. Seyed Ali Madanizadeh, Minister of Economic Affairs and Finance, told IRIB that under the previous multi-rate currency system, when preferential foreign exchange was given to importers, the result was that certain groups received currency at rates far lower than the free market, yet consumers did not benefit from lower prices.

He noted that instead of curbing inflation in essential goods, preferential currency actually fueled inflation and never reached the end consumer. In practice, he said, the government was allocating foreign exchange, but the subsidy for essential goods was not reaching the people. Statistics even showed that some subsidized livestock foods and raw materials were being smuggled out of the country.

The Minister added that preferential currency is no longer allocated for imports. The Central Bank now has firm control over the market, and no new preferential exchange rate will be introduced.