Iran's energy sector review

Iran's economic performance for 2012 was composed of alarming indicators for Iranians. An 0.9 economic contraction, 27.4 per cent inflation rate, 14 per cent unemployment, 50 per cent decrease in oil exports which shared 87.9 per cent of the country's total exports in 2011, increasing bad loans to $60 billion and increasing liquidity to around $350 billion. Now the Iranian government headed by Mahmoud Ahmadinejad whose rule will finish in six months, has new disputed economic plans. According to a Mehr News Agency report, the government wants to issue 17 million 'food cards' for poorer citizens aimed to support them with oil, rice, sugar and probably meat and chicken. The Iranian government reportedly agreed with parliament to pay a monthly sum of between 800, 000 to 1000, 000 rials to very poor families as well. Several days ago,the government and parliament agreed to allocate $2 billion from the National Development Fund (NDF) to provide staple foods for 15 million

Iran's national currency has dropped in value yet again by nine per cent during the past three days against the USD which is soaring from 33,700 to 39, 000 rials. According to official statistics, the dollar rate in Iran on January 23, 2012 was 21,000 indicating an 18, 000 rials difference compared to same date this year. A sharp decrease in Iran's rial value took place when western sanctions on Iran's banking and oil exports came into force in late June. However after arresting tens of dollar dealers in the open market and also establishing the Forex Centre to provide limited USD to importers several per cent cheaper than the dollar rate in the open market, the USD rate on Iran's open market decreased a little in September and the rate has been kept almost unchanged until last Sunday. Re-increasing the USD rate in Iran during the past few days has several internal and external reasons. First of all, the Iranian government had provided importers of vital p