How Do Oil Revenues Affect the Currency Market?

Although in the long run the currency market is more affected by macroeconomic indicators such as inflation and liquidity growth, the strong impact of oil exports on this market cannot be ignored. Examining Iran's oil export statistics from unofficial and secondary sources, and the point-to-point growth of the free-market dollar rate over the past decade, shows a link between oil sales restrictions and the formation of currency fluctuation waves, such that each time oil export restrictions tightened, b…

Although in the long term, the foreign exchange market is more effective than macro indicators such as inflation and liquidity growth, the high impact of oil exports on this market cannot be ignored. The analysis of Iran's oil export statistics from unofficial and secondary sources and the point-to-point growth of the dollar rate in the free market during the last decade indicates the connection between the restrictions on oil sales and the formation of currency fluctuation waves, so that every time the restrictions on oil exports are tightened, the domestic currency market has been accompanied by an increase in prices.