Page 27 - IRANRptMar19

6.2 Debt
Iran - Gross external debt 2010 2011 2012 2013 2014 2015 2016 2017 2018
External debt (USD bn)
20.030 17.344 7.406 7.006 5.441 6.322 7.475 8.481 10.910
External debt (% GDP)
4.281 2.929 1.258 1.366 1.277 1.577 1.9 2.0 2.4
Source: World Bank, CEIC
Iran's external debt stood at $10.9bn in 2018, up 28.6% compared to the figure in 2017, due to sanctions placed on the country, according to CEIC data. The ratio of external debt to GDP stood at 2.4% in 2018.
The World Bank (WB) said in its International Debt Statistics 2017 report that Iran’s foreign debt stood at $6.3bn in 2015, falling substantially by almost 64% compared to the figure in 2011, thanks to the post-sanctions country being able to access frozen assets in several nations, including the US.
The report said that in 2015 Iran's long-term foreign debt was $2.3bn, its foreign short-term debt was $2.0bn and its debt owed to international financial organisations was also $2.0bn. The ratio of external debt to GDP stood at 1.6% for 2015, down from 2.9% in 2011.
7.0 FX
US dollar breaks 130,000 rial barrier as slide continues apace
The Iranian rial continued its slide on February 17, hurtling past the IRR130,000 barrier, according to local sites like bonbast.
Traders familiar with the situation blame the government for losing its grip on its previously heavy-handed approach to keeping markets calm. Some in Tehran are suggesting the rial could surpass the IRR150,000 mark by the end of the trading week on Wednesday.
Iran’s rial has been on a rollercoaster ride in recent months with its weakest point heading towards IRR200,000 to the dollar, causing the government to effectively close down the local foreign exchange market for several months. The IRR is weaker by around 60% against the USD compared to February of last year. For the past month, the dollar has been trading at between IRR110,000-120,000 on the open market.
Despite the drop in the rial, the Central Bank of Iran (CBI), which claims it has control over the street forex market, assured citizens it has more than enough in reserves and is in control of the local foreign exchange market to stem the loss.
CBI governor Abdolnasser Hemmati said on February 17 the country was facing "unique conditions" as it is engaged in a "financial war" with the US. IRNA previously reported.
Iran - FX
Sep-16
Dec-16
Mar-17
Jun-17
Sep-17
Dec-17
Mar-18
Jun-18
Sep-18
Currency (units per EUR) (eop)
35,339
34,056
34,859
37,057
39,666
43,273
46,522
49,268
48,754
Currency (units per USD) (eop)
31,460
32,375
32,422
32,489
33,805
36,064
37,743
42,590
42,000
27 IRAN Country Report March 2019 www.intellinews.com