Effect of Iran Oil Revenues on Liquidity and Ways to Manage It

Abstract

Monetary authorities each economy assesses the need of the money. Due to the change in the cash directly sometimes has an effect in production, income, employment and inflation. Affecting factors for these changes is highly desirable for economic and deficiencies caused by the country's deteriorating liquidity necessary and always part of the most important topics among economists country. As theoretic several factors may affect the liquidity of the country, but According to Iran's oil revenues, the country's major foreign exchange revenue and the budget is always set on it, this hypothesis is based on the fact that the liquidity of country have direct effect. In this case, another question is given that the amount of foreign income outside the Iranian economy, How could base on different policies and the volatility of oil prices and production and oil-importing countries, impact on country's liquidity which solely be based on demand and it's situation of the banking system and generally based on country's infrastructure managed.In this case, it was optimistic that its cash flow is adjusted based on the economic capacity of the country and the flood of liquidity that has been seen in recent years, wouldn't causing chaos, economic instability and devaluation of the national currency.