Evaluation of Foreign Currency Reserve Account in Iran: Optimal Using Oil Revenue Approach

Iran enjoys blessing of underground resourses and among them oil is an important resourse so that it’s export revenue is the most important foreign earnings and the main source of government income. Experience shows that changes in world oil price has lead to volatility in those earnings. "The foreign currency reserve account of the oil Income" with the objective of stablishing oil earnings and converting it’s revenues to productive investments, has established since the beginning of the third development plan.Therefore this article aims to evaluate the performance of this account. In this regard, beside the theoretical related issues and the other fund experiences, the performance of this account has also been investigated. The results shows that the foreign currency reserve account, not only did not succeed in achiving stated goals but also in comparision with funds in other countries has a less transpancy. So, "The national development fund (Oil Fund)" stablished in the fifth development plan, can be expected to increase the efficiency of oil earnings in Iran’ economy.