If export of Iranian oil drops to zero, the government's currency revenues will decline, Alirza Shakibai, dean of the faculty of economics of the Shahid Bahonar University in Iran’s Kerman province, said.
Therefore, the government should have an alternative to oil revenues, Shakibai added, Trend reports referring to ISNA.
As for the change in the price of energy carriers as an alternative to oil revenues, Shakibai said that of course, an increase in the cost of energy carriers is not a good sign.
However, if the government's revenues in the national and foreign currencies decline due to the decline in oil export, there is no other way to manage the country, he said.
The government should control the currency market and avoid currency shock, Shakibai said.
If the government can do this, citizens will be pleased because the currency shock is higher than the changed price of energy carriers, he said.
"There is a non-oil export infrastructure. Taking into account the US sanctions, Iran may focus on non-oil export. The country may increase export and address the key problems in the Iranian economy," Shakibai said.
He went on to say that unfortunately, the structure of the Iranian economy depends on oil.
"This has always been a weak point in the Iranian economy," Shakibai added. "Presently, the only limitation for Iran is oil export. There are no restrictions on export of other products and there is the trade turnover with many countries."
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