http://www.lobelog.com/how-sanctions-relief-can-help-and-hurt-the-iranian-economy/#more-29664

How Sanctions Relief Can Help and Hurt the Iranian Economy

by Djavad Salehi-Isfahani
Removal or relaxation of international sanctions will benefit Iran’s economy just as surely as they hurt it when they were imposed. But not all sanctions have the same effect, and removing some will have a faster impact than others. President Rouhani has staked his political fortunes on reviving the economy, so how a nuclear deal benefits the economy and how quickly is of critical importance for Iran’s politics, especially for the coming parliamentary elections in March 2016.
Sanctions relief will affect Iran’s economy in four principal ways. The most immediate effect will come from the release of Iran’s frozen funds abroad, estimated at over $100 billion. This is about one-fourth of Iran’s GDP and one-third greater than this year’s government budget. The removal of sanctions against exports of Iranian oil, currently at about 1.4 million barrels per day, will increase oil revenues but with a lag of a few months at least. The third type of sanctions relief opens the way for foreign firms to invest in Iran’s oil and gas, automobiles, hotels and other sectors. The fourth type will restore Iran’s ability to trade with the rest of the world and use the global banking system, especially the interbank system of payments known as SWIFT.
Easing of sanctions of all types will come gradually and may be subject to uncertainty. Some sanctions may snap back if disagreement arises after the deal.http://www.lobelog.com/how-sanctions-relief-can-help-and-hurt-the-iranian-economy/#more-29664