Damages caused by FOREX market fluctuation to be offset: Iran official
Tehran, Iran, Oct.19
Abbas Soroush, a deputy for water affairs at Iran's Energy Ministry, told Trend that the ministry is looking for a way to compensate contractor losses due to rising value of the US dollar against rial.
The rial has slumped due to a weak economy, difficulties at local banks and heavy demand for dollars among Iranians, who fear renewed US sanctions could shrink Iran’s oil exports and derail its economy.
A set of US sanctions targeting Iran’s oil industry is due to take effect in November. President Hassan Rouhani has called the sanctions an “economic war” against Iran.
The Iranian rial hit a record low in the unofficial market and has lost approximately 75 percent of its value so far this year.
"We are looking for ways to compensate to contractors and those who buy equipment for their losses,” deputy minister of energy said.
Referring to the impact of FOREX market's fluctuations on the implementation of water and wastewater projects, he said the increase in the dollar rate does not affect the implementation of water projects.
He added that the Planning and Budget Organization is seeking to find mechanisms and solutions to offset the losses.