Fall in the value of the dollar has affected the revenues of OPEC members because most of them price and sell their oil in US currency.

Oil transactions by OPEC’s second largest producer, Iran, are no longer conducted in dollars, said Oil Minister Gholamhossein Nozari.
“The greenback is an unreliable currency given its depreciation against other currencies such as euro and losses incurred by exporters of crude,“ he told ISNA on Saturday.
The fall in the value of the dollar, which has weakened considerably against the euro and other currencies in the past 12 months, has affected the revenues of OPEC members because most of them price and sell their oil in US currency.
“In line with national policies to sell crude in non-dollar currencies, selling oil in dollar has currently been stopped.“
He said that in the recent summit of the Organization of Petroleum Producing Countries, Iran had suggested that members choose another reliable currency to quote oil to offset further losses to producers.
According to Nozari, a working group comprising OPEC finance and oil ministers has been set up to evaluate and follow up the issue. The outcome of the assessment will be unveiled at the next gathering of the 13-member grouping.
An Iranian oil official earlier told Reuters that Iran has effectively severed all ties with the dollar when it comes to oil revenues.
For nearly two years, world’s fourth biggest exporter has been reducing its exposure to the dollar, saying the weak US currency is eroding its purchasing power. Tehran is now fetching roughly $87 a barrel on daily crude sales of 2.4 million barrels.
“This is an economic decision and we’ve been proven right. Over time the dollar has got weaker and weaker,“ Hojjatollah Ghanimifard, international affairs director of the state owned National Iranian Oil Company (NIOC) said.
“At the macro-economic level, nearly all of Iran’s crude oil sales are now being paid for in non-US currencies.“
Ghanimifard said less than 20 percent of Iran’s oil export earnings are in yen and the rest in euros.

New managing director of Tejarat (trade) Bank said lending rate is lower than inflation rate and this is risky for banks.
Majid Reza Davari told MNA that inflation, which reached 17.2 percent in the month to October 22, is higher than the 12 percent lending/profit rate envisaged for banks and this is dangerous.
“Inflation is lower than lending rate in most countries and if this happens here, it will lead to economic stability.“
In banking terms, when lending/profit rates are high, the money is expensive and will tend to be in short supply (low liquidity), thus overall prices will go down (or inflation is low).
If money is in plentiful (lending/profit rates are low and liquidity is high) then prices overall will go up (inflation is high).
He termed as positive the new decision by the Central Bank of Iran Governor Tahmasb Mazaheri to ban withdrawal from the top bank to extend loans to clients.
The official, however, acknowledged that state-run financial institutions would face difficulties in meeting their financial commitment such as extending loans and completing unfinished projects. “But we should look at the decision at the macro economy level.
Davari proposed that banks manage their financial resources in way to do without CBI funds. “Budget deficit feeds liquidity and inflation. As the government is determined to reduce its budget shortfalls, banks should move in a way to avoid taking money from CBI.“
The top bank in a circular issued last month asked the banking system to control liquidity. It banned them from withdrawing funds from CBI reserves.
Some banks have granted loans from CBI credits in recent years. If the trend continues, it will lead to an increase in liquidity and boost inflation.
Given the serious impact of excessive withdrawals of banks from CBI reserves on inflation rate, he said that it is essential to avoid the use of CBI resources for meeting commitments.
Davari further explained that using CBI resources to grant loans would increase liquidity. “Injection of each toman into the economy will add to liquidity by 4.5 folds.“
High liquidity will increase demand for goods and this will consequently push inflation rate up, the official said, warning that runaway inflation is ’very dangerous’ for the national economy.
Liquidity growth has reached an alarming level climbing to 1,400 trillion rials this year from 700 trillion rials two years ago (the year to March 2006).

A meager share of gross domestic product (5.7 percent) is spent on healthcare.

A senior official with the Medical Registration Organization has warned that access to medical services will become difficult if the per capita spending on healthcare does not increase in the budget bill for 2008-2009.
The organization’s deputy head for parliamentary and legal affairs, Gholamreza Ashrafi regretted that a meager share of gross domestic product (5.7 percent) is spent on healthcare while the figure should reach between eight and nine percent, IRNA reported.
Stressing that 70 percent of the medical services are costly, the official stated that modern medical facilities, equipment are needed for providing swift treatment to the sick.
“Given the meager funds for healthcare, how they can be provided with modern medical services?“ he asked.
Ashrafi noted that insurance companies are currently facing problems in paying medicare charges for their clients.
Noting that Health Ministry faces budget deficit each year, Ashrafi suggested that the government spend more on healthcare to ensure development in all areas, including political, social and economic fields.
“A person who is not healthy cannot go to work, earn his/her living and this leads to underdevelopment of a society,“ the official elaborated.
According to the World Health Organization, each year 100 million people slide into poverty due to exorbitant medicare costs. Another 150 million people are forced to spend nearly half their incomes on medical expenses. That is because in many countries people have no access to social health protection--affordable health insurance or government-funded health services.
Social health protection is not only a key tool to make healthcare accessible to all and to rid millions of people from poverty. It is also an investment in health, productivity and development--an investment that is a prerequisite for competitiveness at the international level.

A number of local and foreign companies, including India’s Hinduja Group and International Container Terminal Services (ICTSI), have expressed willingness to buy all the shares of Ports and Shipping Organization (PSO) in the Tidewater Middle East Marine Service Company, announced deputy head of PSO for ports affairs, Alireza Satei.
Based on a report faxed by PSO’s Public Relations Department to Iran Daily, in line with implementing the policies of Article 44, PSO has agreed to offer 45 percent of its shares in the Tidewater Company via the stock market by March 2008.
He added that in addition to Iranian companies, a number of foreign firms have submitted official request for purchasing the shares.
Tidewater, the largest Iranian company managing port and marine services, is well-known in the local and international arenas and renders transportation services that are compatible with international standards.
Meanwhile, five percent of the shares of Telecommunication Company of Iran (TCI) will be put on sale in the stock exchange for price evaluation on December 22, announced TCI’s Managing Director Saber Feizi.
He noted that the TCI is ready for privatization, adding that the plan to convert the company’s subscribers’ deposits to stocks has not been abandoned yet, IRIB reported.
The official said that 30 percent of TCI’s shares will be offered in the form of Justice Shares, adding the remainder will be put on sale in the Bourse.
Feizi said that the TCI will float four percent of its shares to its staff following price evaluation.
Preparations for privatization of this giant state company have been made in line with Article 44 of the Constitution.
The article seeks large-scale privatization in key economic zones which were off limit for private enterprises for almost three decades.
Shares of the company were planned to be offered at the stock market in October but the process was delayed due to its financial structure.
Earlier in July, Feizi said that three foreign companies from Asia, Europe and the Middle East have submitted official requests to purchase the company’s shares.

Loans will be extended to private and state airlines in the next Iranian year to March 2009 to purchase aircraft, minister of road and transportation announced.
Speaking at a ceremony to mark the International Civil Aviation Day on December 7, Mohammad Rahmati said unlimited amount of loans will be allocated from the Oil Stabilization Fund to domestic airlines to renovate their aviation fleet, Fars news agency reported.
“There is no limit in using OSF deposits and bank loans to renovate the fleet.“
Almost three decades of flight embargoes imposed by the United States has caused dilapidation in Iran’s aviation fleet leading to high rate of air crashes. Domestic airliners date back to 18 years.
“Restrictions imposed by Washington will not impede development of Iran’s aviation industry,“ the minister said, adding that domestic engineers have managed to remove some of problems facing the sector.
Turning to the budget, Rahmati said development funds allocated to airports would double next year.
Budget allotted to Imam Khomeini International Airport (IKIA), some 35 km south of Tehran, would increase from the current 500 billion rials to one trillion rials if the Majlis approves the budget bill for fiscal year 2008-2009.
This is while budget for other airports would rise from 700 billion to 1.4 trillion rials.
Meanwhile, on the sidelines of the ceremony, head of Civil Aviation Organization of Islamic Republic of Iran said that talks are underway with International Civil Aviation Organization (ICAO) to persuade the US to lift the sanctions.
Hossein Khanlari noted that the issue was raised by Iran at the last ICAO General Assembly.
Iran’s permanent representative to the ICAO is currently following up the case with the Montreal-based international organization, he added.
The official stated that ICAO President RobertoÊGonzalez assigned executive and economic committees of the organization to assess Iran’s demand.
“For now a country has been chosen for supplying aircraft spare parts to Iran and negotiations are underway,“ Khanlari said without elaboration.
In 1996, the United Nations General Assembly recognized December 7 as International Civil Aviation Day. The purpose of the global celebration is to generate and consolidate worldwide awareness of the importance of international civil aviation in the social and economic development of states, and of the role of ICAO in promoting safety, efficiency and regularity of international air transport.

Bourse indices (cash profits and prices) rose by 33.83 units in stock exchange trading on Saturday.
Contrary to recent lethargic weeks in which shares experienced a downward trend, the stock market bounced back and the shares of giant companies have gained since last week, ISNA said.
The shares of private Parsian Bank, Saipa Industrial Group, Fars Cement Factory and Khuzestan Cement Factory have increased. The biggest rise was recorded by Fars and Khuzestan cement factories followed by Tehran Cement Factory and Khorasan Steel Complex.
The biggest demand for purchase of share was for Golgohar Iron Ore Company, Kharg Petrochemical Company and Khuzestan Steel Company.
The positive trend was a reaction to the US National Intelligence Estimate (NIE) report stating that Iran is not after nuclear weapons.
The NIE report released by six US spy agencies had boosted share trading relatively since Wednesday in a way that over 22 million stocks were traded in the early hours of Saturday.
Akbar Mardani, a bourse expert told Fars news agency that the NIE report widened the gap among UNSC member states to impose fresh sanctions against Iran.
This has created a positive atmosphere and the stock market will thrive in the coming weeks, he predicted. The expert stated that shares would go up if new negative news was not released in the future.

Construction of new cities near large metropolises has been proposed as a way to stem the steep rise in the prices of land and houses in large megapolises which are rapidly expanding.
Expressing this, managing director of New Cities Development Company said that since the government owns most of the land in new cities, these townships can play a significant role in preventing the expansion of big cities and bringing the price of land and housing units back to normal, reported Far news agency.
Mehdi Zaker-ol Hosseini further said that when land is in short supply in large cities, the prices can be regulated by offering more lands in new cities.
Highlighting that expansion of large cities would create traffic jams and air pollution, he said that land and housing prices are lower in new cities compared to the metropolises in an effort to attract those who need houses.
The official pointed out that about 230,000 housing units were constructed in the new cities until March 2007. This is while, the government plans to cede land in form of 99-year lease for constructing 375,000 housing units in new cities during the year to March 2008, he added.
In related news, Housing Minister Mohammad Saeedikia criticized constructors for failing to observe quality standards in the construction sector, ISNA reported.
Speaking at a gathering on National Building Regulations in Shiraz, Fars province, he said that unfortunately the construction sector lacks satisfactory quality and when a house is built, it should be renovated again after a short time.
This is beneath the dignity of Iranian people and engineers, he underlined, urging that everybody should try to observe the rules and regulations.
The minister put the country’s population at 71 million including 17.5 million households. This is while, there are only 16 million housing units, he pointed out, adding the country faces a 10 percent shortage in the housing sector.
He explained that about 67 percent of the entire houses are owned, 27 percent are rented and about 6-7 percent are possessed by organizations.