Page 17 - IRANRptJul19

Iran would never pursue a nuclear weapon because Islam prevented the country from doing so. “It is us who, because of our religious views, will never pursue a nuclear weapon,” he said.
The US is attempting to throttle the Iranian economy with sanctions to force Tehran into a broader nuclear deal, tougher on its nuclear development programme and delivering other concessions such as end to the arming of various militias across conflict zones of the Middle East.
5.1.1 current account dynamics
Iran current account, USD mn
2011
2012
2013
2014
2015
2016
2017
2018
Balance of payments overall
-947
21,436
12,213
13,189
8,561
2,233
Current account balance
27,554
58,507
23,362
25,105
15,861
1,237
16,388
15,816
Current account balance: % of GDP
5.66
10.08
3.87
5.43
3.12
0.32
3.92
Total Exports
130,500
95,500
82,000
88,800
63,000
Total Imports
62,661
59,999
51,914
48,138
52,007
40,097
41,945
54,459
Trade Balance
68,692
42,049
32,291
35,231
20,5000
Source: CEIC, Central Bank of Iran
Iran running a current account surplus and has over $100bn of gross official reserves, says IMF
The International Monetary Fund (IMF) estimated in March that the government held $112bn of foreign assets and reserves. It also indicated that Iran was running 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 World Economic Outlook released last October that Iran’s current account surplus would see a decline from 2.2% of GDP in 2017 to 1.3% in 2018 and 0.3% in 2019.
5.1.2 Import/export dynamics
Iran to open border market on Turkmenistan frontier
The Iranian government is set to open a border market located on the Turkmenistan frontier in North Khorasan province, Otagh News reported on June 25.
Iran continues to relax border crossings with its northern neighbours as part of its push to clear obstacles to trade in line with the start of Eurasian Economic Union (EEU) free trade zone agreed with Tehran. The deal with the Moscow-led bloc reduces tariffs on several thousand goods heading in both directions.
“A border market will soon open in North Khorasan Province that will benefit locals,” Iran’s Minister of Industry, Mine and Trade Reza Rahmani, reportedly said while addressing a meeting with provincial authorities and lawmakers on June 25.
North Khorasan shares a 300-kilometre border with Turkmenistan. However,
17 IRAN Country Report July 2019 www.intellinews.com