MP: Iran has not excluded itself to foreign currency coming from oil

An Iranian technician is working on an oil installation. (File photo)

Tehran, Jan 14, IRNA – Iran has not excluded itself to foreign currency coming from the oil sales, but, the oil market must not be ceded to Saudi Arabia to monopolize the issue, first secretary of Parliament’s Energy Commission said on Wednesday.

‘Oil production and sales aimed at gaining foreign currency and covering a part of the annual budget is one aspect of the matter, but the more important issue is that if under the current circumstances we will decrease production and sales that means leaving the scene of the OPEC market fully open for the competitors,’ Amir Abbas Soltani told IRNA Economic Desk.

‘Even if we will fully eliminate the oil incomes chapter from the country’s annual budget, in order to preserve Iran’s status as an oil producer within the OPEC and the world oil market, we should not leave the scene in favor of our competitors,’ he said.

The parliamentarian said that under no circumstances, even if we do not need the oil money, we should not retreat from producing our one million bpd, or more quota, and continue our oil exports.

‘On the other hand, If we will break up with the oil market we will face budget deficit, under such conditions that the country’s Foreign Currency Fund is not satisfactory and Iran needs to increase its assets some 20% to be able to face the country’s financial and economic needs.’

The Energy Commission member said that making investments on infrastructure oil facilities is needed so that in shared field we will not allow the Arabs to gain the greater quota, which equals betraying the nation.

On ongoing Tehran-Moscow oil consultations, Soltani said: Keeping in mind that Iran and Russia are both experiencing emergency conditions, interactions with Moscow are to the benefit of the country today, and some people should not assume that the entire contracts with Russia resemble the colonialist Turkmencahi Pact.

‘We need money and in order to gain economic success in our oil policymaking, we need to have some exchange of ideas with Russia, feeling certain that Russia is not in a position today to enable it to pressure Iran, or to gain concessions from us,’ he said.

‘Just as the Saudis increased their production aimed at imposing pressure against Iran and Russia and lower the prices, Tehran and Moscow can as major oil producers, can use the lever of bilateral understanding at the service of planning against the enemies,’ said the member of parliament.

It is noteworthy that parallel with the oil price falls to lower than 45 dollars, the Iranian Parliament is surveying an appendix to the annual budget, which if approved and ratified, will detach the Iranian New Year 1394 budget plan from the oil and foreign currency income, and make clear the hidden budget deficit.

According to Ahmad Tavakkoli, who has presented the appendix bill, if it will be approved the government will for good get rid of dependence on oil and foreign currency assets, and the Iranian budget will in real sense of the word be come a rial (Iranian currency) budget, at the service of the objective of ‘resistance economy.’



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