Reduction of Tensions Helped Strengthen Rial – Iran

CBI Also Injected Large Amount of Hard Currencies Into Market

Iranian Minister of Economy and Treasury Shamsoldin Hosseini told reporters in Tehran today that recent reduction of sanctions-related anxieties in the markets has helped the country’s national currency to regain some of its value. Hosseini also said the Central Bank of Iran (CBI) has increased the injection of hard currency to the markets in recent days to shore up rial’s value.

“Of course the reduction of some of the anxieties caused by the sanctions has resulted in strengthening the exchange rate,” Hosseini said. “And in recent days, CBI has also been able to inject much more hard currency in the exchange market which has been the main reason for the improving exchange rates.” (Fars News Agency, 5 March)



The rial has gained more than 15 percent in value against the dollar this week in the aftermath of the Almaty Talks, now being traded at open markets at around 32,000 rials to a dollar.

Iran Oil Revenues Down by Half- Economy Minister

Iran's Minister of Economy Shamseddin Hosseini said in Tehran that because of U.S. and EU sanctions, the country’s oil revenues have been cut in half this year compared with last year.

“Because of the sanctions, revenues collected from the country's oil have dropped by 50 percent,” Hosseini said. “By managing our resources and revenues, there will be no problem in paying salaries until the end of this year,” Hosseini added, referring to Iran's calendar year which ends on 20 March 2013. (Donya-e-Eqtesad, 16 December)

Donya-e Eqtesad, Iran’s leading business journal, said the minister had originally made the comments during an interview with state-run TV on Saturday. To read the journal's article in Farsi, please click here.

Hosseini’s comments confirm earlier reports by oil reporting agencies that Iran’s exports had fallen by 46 percent for the 12-month period ending 31 October. It is also estimated that Iran’s oil exports in December will be at a record low of 824,000 barrels per day, a drop of 66 percent over the export averages of 2.4 million b/d in 2011.

Meanwhile, starting 6 February 2013, buyers of Iranian oil must hold payments in special funds that can be used only for bilateral trade on a list of approved commodities. The measure would effectively lock up a substantial amount of Iran’s future oil revenues.   

Photo credit: Iran’s Kharg Island Oil Export Terminal. (Getty Images)