Exchange Rate - As of March 2002, the old multi-tiered system has been replaced by a unified single market driven exchange rate. The Central Bank of Iran plans with the assistance of the IMF to gradually make the Rial fully convertible to other currencies. As a first step, full convertibility has been introduced as of January 1, 2003 in Iran's Free Trade Zones. The official rate on March 21, 2006 was 9,152 Rials for US$1. In recent years the Rial has been devalued against the US$, which remains the unofficial lead currency by an average of 3 - 5% p.a. under a tightly managed float.

Government Budget - Since 2002, oil revenues are only recorded at the pre-determined price (presently approx. US$ 40 / bbl) in the budget. The difference is put in the Oil Surplus Fund. Generally, in recent years projected budget revenues could not be realized which was compensated through the reduction of development expenses, issuance of participation papers and withdrawals from the Oil Surplus Fund.

Subsidies - Subsidies remain high with US$ 5.5 billion allocated to basic commodities and (based on the concept of opportunity cost) US$ 29.5 billion to energy in 2006.

Credit Rating - Iran's credit rating by Fitch is presently B+.

Foreign Debt - In March 2006, Iran's foreign debt was about US$ 24.3 billion (less than 13% of GDP) as compared to US$ 23.1 billion in March 2005 and US$ 17 billion in March 2004. The external debt profile of Iran shows that $12.8 billion are due within the next 12 months.

Foreign Reserve - Iran's foreign reserves principally comprise its foreign exchange balances, which have grown significantly in recent years following the establishment of the Oil Surplus Fund. The country's gross foreign reserves (including the Oil Surplus Fund) are about US$ 63.2 billion (34% of GDP).

External Sector - As a direct result of high oil prices, Iran's trade balance as well as current account balance have seen a substantial boost in the past 1.5 years.