Jo Harper, DW: How will Iran's economy hold up if sanctions return?
Trump’s decision to end the Iran nuclear deal will hit the Iranian economy, although with China and the EU not on board the impact may be less severe than some fear. How Iran's banking system fares could tell us more.
President Hassan Rouhani sought this week to reassure Iranians that their country's economy could withstand the likely reimposition of sanctions. after US President Trump's nuclear deal pull out.
But opinions differ on the extent to which Rouhani's words are bravado.
"The sanctions could significantly reduce Iran's oil revenue, making it hard to have access to its oil revenue in cash and could push Iran to have oil for goods and services deals," Sara Vakhshouri, the head of Washington-based consultancy SVB Energy, told DW.
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WNU Editor: I concur with the above analysis. Iran's currency has been in free-fall for the past year .... Iran's Currency Has Hit A Record Low (March 26, 2018), and Iranian banks are especially vulnerable. The last thing that Iran needs right now are sanctions .... especially when many Iranians had expectations of better times two years ago and acted accordingly when the Iran nuclear deal was made.
2 comments:
The Iranian have to replace the stuff the Israelis blew up and maintain their economy.
A 2 front war.
A lot of companies in the world incorporate American components in their products. And, more than political words, this is a big deal. For example, Airbus stop to sell plane to Iran at the beginning of the sanction many years ago because at least 30% of their planes are made with American components. A blockade on them will stop Airbus to sell planes all around the world. Iran is only 5% of their sale...they don't have to be a rocket scientist to see their interest. It could be the same thing today.
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