CBI chief: Less than 1/3 exports related to oil

IRNA – Governor of the Central bank of Iran (CBI) Abdolnasser Hemmati said less than 1/3 exports is related to oil.

Oil has had the major share of production and exports in Iranian economy for 50 years, Hemmati wrote in his Instagram page, adding that today less than 1/3 of exports is related to oil.

Iran’s economic growth is also strongly affected by the oil sector and the direct effect of the sanctions is to reduce the oil sector growth and reduce resources for government’s budget, he noted.

He went on to say that the CBI will be able to create stability in non-oil sector by adopting monetary and currency policies.

Growth in oil sector is exogenous and depends on production and oil exports, Hemmati noted.

As Iran has lost a significant part of budget resources in tough sanctions times, it is necessary for the country to reform the budget structure so as to slash direct reliance on oil resources to zero, said the head of the Planning and Budget Organization Mohammad-Baqer Nobakht earlier.

It was necessary even in normal situation to reduce reliance on oil resources, he added.

He expressed hope that with the finalization of the reform of Iran’s budget structure, the government and the Parliament would interact so as to approve the plan and help the country overcome the tough situation.