Country Risk Summary: IRAN

May 2003
Middle East Monitor: The Gulf;May2003, Vol. 13 Issue 5, p10
Country Report
Country Report
The article reports on economic and political conditions in Iran. At the end of March, 2003 US Defence Secretary Donald Rumsfeld, warned both Iran and Syria not to become involved in the war. While we do not expect to see a US invasion of Iran in the short-term, there is certain to be added US pressure on the political regime of Iran once the war in Iraq has drawn to a close. The death of the governor of the Central Bank of Iran in March may prove a blow to the exchange rate reforms that he began to introduce last year. Given that the power of the conservatives remains the single largest constraining factor on economic reform, and this is unlikely to change in the short term, it is important that the new governor is as reform-driven at Mohsen Nourbakhsh.


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