Iranian news agency ISNA reports that Iran could be facing problems with the economy if the oil prices fail to average around $60 a barrel, until March, end of the current year for Iran.
While the International Monetary fund and some economists have earlier said that Iran needs Oil at around $70 to $75 to balance its books, Ramin Pashaei, the deputy central bank governor for economic affairs, said that if the oil remains at an average price of $60.60 for the next 5 months of the year, Iran can pass the crisis soundly.
Though Pashaei has not mentioned the problems that may crop up, economists say that falling prices could take a toll on the government's spending and may also send the current account into deficit in the medium term.
Whilst on one hand we have consumers happy with the reduced oil prices, downslide of their economy seems to be a major problem for Oil exporting countries. So what is the most sustainable price for Oil ? or is this is just another example of the world's mantra.. some lose and some gain ?
While the International Monetary fund and some economists have earlier said that Iran needs Oil at around $70 to $75 to balance its books, Ramin Pashaei, the deputy central bank governor for economic affairs, said that if the oil remains at an average price of $60.60 for the next 5 months of the year, Iran can pass the crisis soundly.
Though Pashaei has not mentioned the problems that may crop up, economists say that falling prices could take a toll on the government's spending and may also send the current account into deficit in the medium term.
Whilst on one hand we have consumers happy with the reduced oil prices, downslide of their economy seems to be a major problem for Oil exporting countries. So what is the most sustainable price for Oil ? or is this is just another example of the world's mantra.. some lose and some gain ?