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Iran had over $100bn of gross official reserves in 2019, says IMF
The International Monetary Fund (IMF) estimated that the government held $112bn of foreign assets and reserves in March last year. It also indicated that Iran ran a current account surplus.​ The figures imply that Iran might withstand the sanctions without an external payments crisis.
But the IMF also noted that Tehran was having difficulty accessing some of its reserves as its relations with foreign banks were constrained by the threat of US sanctions. Meanwhile, sanctions could cut the current account surplus sharply given the severe disruption they are causing to trade.
The IMF estimated in its latest World Economic Outlook released on April 14 that Iran’s current account balance​ across 2019, 2020 and 2021 would likely be at -0.1%, -4.1% and -3.4% of GDP, respectively, as a result of the impact of the coronavirus (COVID-19) pandemic.
5.1.2 ​Import/export dynamics
Iran-China trade recorded as 40% down in Jan-Apr
Iran expresses interest in creating barter system with Kazakhstan
Iran sends humanitarian aid to Kyrgyzstan to fight coronavirus
Chinese customs data released this week indicates that trade between Iran and China in the January to April period was valued at $5.26bn, marking a decline of around 40% y/y, IBENA has reported.
Figures from the General Administration of Customs of the People’s Republic of China also put Iran’s exports to China during the four months at $2.92bn, translating to a 61.2% y/y drop. China’s exports to Iran were given as 3.2% y/y up at $2.92bn.
China imported $5.93bn worth of goods from Iran between January and April 2019, the report also said.
Iran-China trade was given a value of $1.32bn for April, with Iran’s exports to China accounting for $526.24mn and imports from China $796.07mn.
Oil is the main import item China takes from Iran. The collapse in oil prices would appear to be a key reason for the reduced flow of Iranian exports to China during the period in question. Reduced demand in China due to the coronavirus (COVID-19) outbreak was likely another reason.
Iranian President Hassan Rouhani has stated that Iran is ready to establish a barter system with Kazakhstan to deepen bilateral trade relations​, according to a summary of a phone conversation between Rouhani and Kazakh President Kassym-Zhomart Tokayev released on May 20. Rouhani also told his counterpart that it was important to develop rail and road transit and banking cooperation and to finalise an agreement on facilitating the issuance of visas for citizens of the two countries. As of October last year, Iran entered into a two-year preferential trade agreement with the Eurasian Economic Union (EEU), of which Kazakhstan is a member.
‘‘A barter system can deepen trade relations between the two countries, and Iran is ready to establish this mechanism,’’ Rouhani said, according to the Iranian president’s​ official website​.
Kazakhstan on May 20 approved a bill on the ratification of an agreement between the country and Iran on mutual legal assistance in civil matters.
Iran has sent humanitarian aid to Kyrgyzstan to fight the coronavirus (COVID-19) pandemic, the Iranian embassy in Kyrgyzstan said on May 19. Despite its own ongoing infection, the Iranian government sees the chance to send aid including masks and anti-bacterial gels to its neighbours as a PR coup in its own local press. The Islamic Republic has shipped several consignments to other Central Asian countries as part of the outreach effort in
22​ IRAN Country Report June 2020 www.intellinews.com