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Only 20 percent of Iran’s oil revenues spent on non-consumer goods

Business Materials 5 July 2013 20:18 (UTC +04:00)
During the last 100 years, just 20 percent of Iran's oil revenues have spent on goods and permanent assets, the former Minister of petroleum, Akbar Torkan said during an interview to Mardomsalari newspaper on July 4.
Only 20 percent of Iran’s oil revenues spent on non-consumer goods

Azerbaijan, Baku, July 4 /Trend, N. Umid/

During the last 100 years, just 20 percent of Iran's oil revenues have spent on goods and permanent assets, the former Minister of petroleum, Akbar Torkan said during an interview to Mardomsalari newspaper on July 4.

He said that, some $440 billion have spent to imports consumer goods during Ahmadinejad's two-term presidency (2005-2013).

Ahmadinejad imported $487 billion worth of goods in total from 2005 to March 20, 2013.

According to Torkan, the amount of liquidity in Iran was about 630 trillion rials in 2004, however this figure increased by 6 times to 3,800 trillion rials.

The USD rate, when Ahmadinejad took the presidency in 2005, was 8,000 rials, but this figure has risen to 33,200 rials now.

"Despite increasing liquidity by six times, the amount of supply of goods has only increased by 20 percent, then there is a huge deference between liquidity and supplying goods in the country, which led to rising the price of goods by 500 percent during last 8 years.

According to statistics released last week by the Central Bank of Iran, the inflation rate in last month (May 20 to June 20) was above 32 percent compared to same period in last year.

During Ahmadinejad's two-term precidency, Iran's 8-year oil revenues reached $720 billion. Oil
exports make up 80 percent of Iran's total export earnings and 50-60 percent of government
revenue, according to the Economist Intelligence Unit.

Ahmadinejad has been charged of importing a huge amount of consumer goods, instead of supporting domestic production.

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