exchange of oil with housing; The dream or nightmare of the national economy
Apparently, the insistence and coming and going of oil brokers has kept the discussion of oil clearing with housing construction alive, and every now and then, news about this is heard from the Ministry of Roads and Urban Development, and it is even stated that the price of Chinese construction is lower than that of local builders. is
Although it was discussed in the previous note that the exchange of oil against any commodity is detrimental to the national economy and it is better that the exchange of oil leads to the development of infrastructure or the growth of technology in the country, but it is necessary to mention a few points in this regard. To check:
In clearing oil against housing, it is more important than how the other party calculates the construction cost with us, how we calculate the price of oil. If we lower the price of oil by 20% and they calculate the cost of building housing by 10%, who will benefit?
The fact that the cost of building housing in the country is high is exactly where the Ministry of Roads and Urban Development comes in to organize the market in this regard. A task that is not seen in the promises of the president or in the plans of the relevant ministry, and is far more important than the fulfillment of the promise of building 1 million residential units annually.
It is also necessary to check how the technical and executive process of clearing oil for housing will be. How will the transfer of currency resources inside the country be formed and will this be possible in the real world?
Since the main cost of building housing is formed from the cost of construction materials and the cost of manpower, the question that should be investigated is, in what situations is the implementation process of oil clearing with housing possible:
1. The contractor will import the required currency into the country and convert it into Rials in the country. The only question is that if possible, why not export oil in this way? Not only in a mandatory contract that he developed with full authority.
2. The contractor should import construction materials to the country in exchange for imported oil, which will increase the cost of construction due to the increase in transportation costs, and it will not be rational.
3. The contractor should bring other imported goods into the country and by converting them into Rials in the country, the possibility of supplying materials and construction will be provided. In addition to increasing imports, this method will not create new sources for financing due to the amount of fixed liquidity in the country.
4. The contractor will pay the foreign exchange resources to the Iranian builders and factory owners in his country as he received the oil. For example, it will be settled with cement and steel suppliers in Türkiye or China. It seems that this method will be another form of foreign currency exiting the country, and unlike the export methods, people will not have guarantees regarding the obligation to enter the country in this method, considering the ease of obtaining foreign currency in the country of origin, it is also relatively attractive. will have the only obstacle in front of it will be the problems caused by the exit from countries like Turkey and China to another third country. become a country
It seems that none of the above paths can provide national interests in the field of economy, and it is necessary for upstream institutions to be more active in this field in order to prevent further damage to the country’s economy.
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This post is written by Abedbeigy