By: Mir M.Hosseini
Iran started importing wheat from the U.S. The agreement had been made in November same year but because the treasury was almost empty a loan application was submitted to the International Money Fund. Iran's incomes were low because of low international oil prices and the fact that foreigners were actually plundering the country IMF agreed to give a 35 million dollars to Iran to import 250,000 tons of wheat. This was the year Iran established its own central bank and started issuing bank notes observing a new monetary policy. Iran's economy became stronger during 70's when oil prices rose to nearly 20 dollars per barrel. In 2005 Iran announced self sufficiency in production of wheat in the country. This had been one of main dreams for Iranians since the 1979 Islamic revolution. However Iran still runs a closed economy and economies of scale and a reliable fiscal policy is not being implemented causing high inflation. The U.S. sanctions and international embargo are major causes of the current situation.