Iran Economy in Brief – No 55

Which foreign currency will replace US Dollar in Iranian reports?

“Central Bank of Iran will change the currency used in the economic reports from US-Dollar to another foreign currency within the next two months”, announced Valiollah Seif, Governor of Central Bank of Iran.

Little contribution of US-Dollar in Iran’s foreign trade has led the monetary authorities to take such decision. Since Iran’s largest trade partners are Europe, China and United Arab Emirates, Central Bank is deciding to either define a basket of foreign currencies or simply take the most common currency used in trades.

Read More about Base Currency for Iranian Reports

Who are the most unemployed graduates in Iran?

Latest statistics show that unemployment rate in Iran in summer 2016 was around 20%. One million graduate students are jobless which makes the unemployment rate among university graduate to be around 18%.

Since many courses are more focused on theoretical topics, when students leave the university, their skills are rather poor to help them be hired quickly.

Ministry of Labour of Iran says IT-graduates form the most unemployed group among the students. In this regard, this ministry in a collaboration with the Ministry of ICT is designing new projects to change this trend. So far the result has been the creation of 100 thousand new jobs.

Read more about Unemployed Youths in Iran

Housing Market’s Flourishing Signals

In the first three quarters of the Iranian fiscal year, housing market has grown 9%, says the Ministry of Roads and Urbanisation.

Stagnation in this market led to recession in many other related sectors such as cement and steel. Now according to this Ministry, the market indicates positive signals: the number of finished apartments has increased and the growth is back to new construction license requests. However, the market needs not only investment but also consumers. To support this, Central Bank has promised to provide new facilities such as loans to empower the households to buy houses.

Seven cities in Iran face water crisis

Less rain, illegal wells, weak water management lead to a worrying situation in water resources in the country. Currently seven cities, Kerman, Zahedan, Bandar Abbas, Mashhad, Yazd, Esfahan and Boushehr are faced with a water crisis in the coming Iranian year.

“86% of our renewable water sources are in use, equivalent to 100 billion cubic-meters. This figure is far beyond any international standard”, said Mr Haj Rasouliha, CEO of Iran’s Water Resource Management Co.

50 new dams will be opened by March 2017. Should this help the situation?

Read more about Iran’s water resources