Page 22 - IRANRptOct19

Iranian shipment of “titles” was smuggled cigarettes Kazakh authorities say
German exports to Iran fell by 48% to $759mn in the first half of this year and Iran's sales to Germany for the same period dropped 43% to $123mn, according to the BGA (Federation of German Wholesale and Foreign Trade) trade association.​"German companies are forced to choose between their market activities in Iran and the United States, so it's clear which market is preferred," the BGA trade association told Reuters.
Smuggled cigarettes from Iran worth Kazakhstani tenge (KZT) 1.2bn (around $3.1mn) that were disguised as a consignment of floor tiles were discovered at Morport Special Economic Zone (SEZ) in Kazakhstan’s Mangistau region, the Kazakhstan State Revenue service said on August 26.
Since Iran earlier this year struck a temporary free trade agreement covering designated goods with the Russia-led Eurasian Economic Union (EEU), Iranian traders and counterparts buying Iranian products have benefited from the severely low value of the Iranian rial (IRR), following depreciation in the face of US sanctions.
“Shipping documents were submitted to the customs authority for ‘floor tiles’ which arrived from the Islamic Republic of Iran in six 45-foot containers. But during the check, instead of the declared product, 333.9 million cigarettes were found. Excise stamps were absent. According to the results of the merchandising examination, the product was valued at more than KZT1.2bn,” customs officers reported.
There have been previous reports of cheap smuggled cigarettes making their way to Kazakhstan from Iran, including shipments sent across the Caspian Sea.
5.1.3​ Gross international reserves
Iran’s gold Imami sovereign breaks IRR25mn barrier amid dwindling hard currency supplies
CBI has over €70bn in hard currency
Iran’s gold sovereign of choice, the Imami, has again broken the IRR25mn barrier as buyers continue to purchase remaining stocks of the officially minted 18-carat coin, IBENA reported on June 18.
Iranians’ attraction to gold as a safe haven has intensified with hard currency supplies dwindling in Iran following legal changes suddenly brought in in early April to arrest the stark descent of the Iranian rial (IRR), hit by souring sentiment over Iran’s economic prospects in the face of hostility from the US Trump administration. The move banned open market trading of foreign exchange and made unofficial rates illegal.
In early May, a World Gold Council report said that​ ​gold coin and bar demand in Iran shot up to a three-year high of 9.3 tonnes​ ​in the first quarter as Iranians —correctly—anticipated that the consequences of deteriorating relations with the US would cause Tehran to introduce currency controls.
The Azadi gold coin, the former number one sovereign sold by the Central Bank of Iran (CBI), also reached a historic high on June 18, topping IRR24mn a coin, while smaller half-sovereigns increased in price accordingly.
According to the IMF in its Regional Economic Outlook on May 4, the value of Iran’s gross official reserves will reach $108.4bn in 2018.​ The country’s gross official reserves will experience a $13.3bn jump in the current year rising from last year’s $95.1bn.
The Central Bank of Iran (CBI) has more than €70bn in hard currency reserves, according to the National Development Fund of Iran (NDFI).
22​ IRAN Country Report​ October 2019 www.intellinews.com