IMF Staff Country Reports

Islamic Republic of Iran: Recent Economic Developments

Publication Date:

April 15, 1998

Electronic Access:

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Summary:

This paper reviews economic developments in the Islamic Republic of Iran during 1990–96. Iran experienced heightened macroeconomic instability in the first quarter of 1995/96. Among the contributing factors, the announcement by the United States of intensification and extension of sanctions had a pronounced negative impact on expectations. This triggered a run on the foreign exchange market and buying in the goods market. The free market exchange rate shot to Rls 6,200 per US$1 and consumer prices rose by 14 percent during April–May, which raised the 12-month consumer price inflation to 59 percent in May.

Series:

Country Report No. 1998/027

Subject:

Exchange rates Exports Foreign exchange Imports International trade Oil exports