Iran's energy sector review

It seems that Iran's economic problems are going to be widened day to day. After falling the country's oil export by more than 50 percent, increasing USD rate from 13, 000 rials in the beginning of current year to 3620 rials on Oct.3, the obstacles occurred in transaction of exported oil and non-oil commodities' revenues into country. Now Hadi Ghavami, parliamentary Plan and Budget Committee member says that Iran imported much more than a half of its annual wheat from abroad. Wheat issue is very sensitive for Iran with 75.2 million people. Fars News Agency quoted Ghavami on Oct.2, saying that Iran imported 7 million tons of its 12 million annual wheat demands during last 6 months (Iranian solar year begins in March 20). Iran had reached self-confidence in wheat sphere several years ago. Iranian media outlets reported in June, which is the harvesting period of wheat in Iran, that farmers prefer to sell their harvested wheat to the private sector that pays more fo

The amount of liquidity in Iran has been announced officially at four thousand trillion rials. On Monday morning each American dollar sold at 29,700 rials and then reached 35, 500 rials in the evening, indicating a 16.5 per cent drop in the national currency's value versus the USD. Regarding the amount of liquidity, namely citizens' cash assets in the country, Iranians lost 660 trillion rials between the morning and evening on Oct.1. The Forex price fluctuation in Iran last occurred more than three decades ago after the Islamic Revolution occurred in 1979. Since then, the inflation rate in Iran has usually been above 10 per cent and Iran's rial value has decreased year-on-year versus the USD. However, slowly. Iranian government during the past 33 years has kept the rial value artificially up by injecting billions of dollars from exported oil crude revenues to the country's economic vessels, but during last 18 months rial value drop has accelerated. A USD in