Page 24 - IRANRptAug21

5.1.3 Gross international reserves
Iran lifts restrictions on carrying cash and gold into country
Iran’s foreign exchange reserves $85bn in 2020, estimates IMF
Iran’s Supreme Council of Economic Coordination (SCEC) has announced an end to the restrictions placed on carrying cash and gold into the country without the need to make a declaration, LIT reported on June 13.
The €10,000 limit has been removed. Flows of cash and gold into Iran have been hindered since the coronavirus crisis brought most global travel to a halt early last year. The rule change might be designed to recover some of the lost circulation of gold and hard currency as the effects of the pandemic on global travel ease.
“The carrying of foreign currencies in the form of banknotes into the country is [from now] authorised for legal and real entities without maximum limits,” the LIT report said.
It added, however, that transfers should comply with laws and regulations adopted by the Central Bank of Iran (CBI) and be consistent with Iran’s laws on fighting money laundering.
Based on a previous decision by the CBI, announced in June 2020, individuals were required to declare the holding, carrying or exchanging of foreign banknotes in amounts above 10,000 euros or the equivalent in other foreign currencies.
The SCEC has also waived duties imposed on raw imports of three precious metals, namely gold, silver and platinum.
It said importers of the three metals would be exempt from paying all duties and taxes, including a 9% value-added tax charged on finished products.
According to the IMF in its Regional Economic Outlook on May 4, the value of Iran’s gross official reserves was estimated to reach $108.4bn in 2020. The country’s gross official reserves will experience a $13.3bn jump in the current year rising from last year’s $95.1bn.
In an April report, the IMF predicted that Iran's foreign exchange reserves would be $85bn in 2020, but around 90% of the reserves are frozen abroad by sanctions.
The prices of Iranian gold sovereigns have also been rising on the open market. The Emami coin price moved up by around 0.7% on May 17, while the prices of half coins and quarter coins gained by more than 2.5%.
5.2 FTA, multilateral agreements
Armenia and Iran sign MoU on expanding cooperation with Iranian SMEs
Armenia and Iran have signed a new agreement on cooperation with Iranian small and medium sized enterprises (SMEs), particularly those active in exporting foodstuffs and home appliances.
The CEO of the Iran Small Industries and Industrial Towns Organization Ali Rasoulian told IRNA on July 16 that last week Yerevan and Tehran signed a memorandum of understanding to expand cooperation.
Rasoulian said Armenia is a member state of the Eurasian Economic Union (EEU), a fact that could play a key role in transiting Iranian commodities to Russia and even European countries.
24 IRAN Country Report August 2021 www.intellinews.com