Page 18 - IRANRptMay19

positive 11-month trade balance despite US sanctions assault
Iran’s non-oil trade balance remained positive in the first 11 months of the Persian year (ending February 22) despite efforts by the US to choke off the country’s international trade flows with sanctions, Mehr News Agency cited the Islamic Republic of Iran Customs Administration (IRICA) as saying on March 14.
The trade surplus was officially recorded at $1.577bn.
Iran exported 105.9mn tonnes of non-oil goods worth approximately $40bn in the stated period. The value of the goods fell 0.74% y/y while the tonnage decreased 6.36% y/y.
Also in the 11-month period, 28.92mn tonnes of items worth $38.5bn were imported into Iran.
Gas condensates were registered as the main export. Some $3.93bn of gas condensates were exported.
The figures were calculated using the government’s official and preferential exchange rate of IRR42,000 to the USD, which is available only to selected businesses. The unofficial rate stood at IRR133,000 by the market close on March 14.
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 reserves
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). However, as restrictions continue on trade and withdrawal of cash from forex reserves, the country is looking for ways to find new revenues of hard currency.
5.2 FTAs
18 IRAN Country Report May 2019 www.intellinews.com
Iran and Iraq sign preliminary trade deals during
Iraq and Iran signed several preliminary trade deals on March 11, the first day of Iranian President Hassan Rouhani’s first official visit to the Islamic Republic’s neighbour. Iran hopes building ties with Iraq will help offset the