TEHRAN - The head of the Iran-UAE Joint Chamber of Commerce has criticized the Central Bank of Iran (CBI) for significant delays in foreign currency allocation, calling it the primary bottleneck in bilateral trade — particularly for essential and perishable goods.

Speaking on the sidelines of the Iran Expo 2025, the official recalled that trade between Iran and the United Arab Emirates had exceeded $27 billion annually in past years, underscoring the vast potential for renewed economic ties between the two neighbors. “Despite ups and downs over the years, bilateral trade has persisted,” he said.

He noted that Iranian traders, especially from the private sector, have consistently shown strong interest in expanding trade with the UAE. “If domestic investment conditions and foreign exchange policy improve, we could witness a sharp surge in bilateral trade,” he added.

Contrary to public belief, he argued that sanctions are not the main challenge. “Export and import processes with the UAE continue despite sanctions,” he said. “The real obstacle lies in the internal policies of the Central Bank.”

According to the chamber head, delays in currency allocation have sometimes stretched beyond 120 days, creating severe disruptions — particularly in the trade of time-sensitive goods. “Such lags are unacceptable when essential and perishable commodities are involved,” he warned.

Agricultural exports to the UAE are especially vulnerable. “Delays in customs clearance or forex provision can lead to spoilage,” he said, warning that such inefficiencies not only harm Iranian exporters but also erode the confidence of foreign buyers in Iran’s trade mechanisms.

He concluded that prolonged delays in foreign currency allocation are diminishing supply in the market while demand remains steady or grows. “This imbalance contributes directly to inflation. If policymakers aim to control prices and stabilize markets, they must urgently reform the currency allocation process,” he said.

EF/MA