Page 24 - IRANRptJul20

Iran-Armenia trade grows 3.4% in Q1
to Kyrgyzstan as a gesture of goodwill.
Recorded Iran-Armenia trade grew by 3.44% y/y to reach $74.6mn during the first quarter, ILNA reported on May 9.
Data issued by Armenia suggested that exports from Iran made up the bulk of trade. However, a significant chunk of exports from Armenia were not listed, including pork consignments and bootleg alcohol, which remains popular with a significant number of Muslim Iranians when it is not off-limits.
Imports from Iran’s small neighbour increased 104% to reach $19.1mn in the first quarter, while Iran’s exports to Armenia stood at $55.5mn, marking an 11.5% decline y/y.
The latter part of the quarter was affected by the onset of the coronavirus (COVID-19) outbreak. The closure of border crossings to help prevent the spread of coronavirus clearly hindered trade.
Looking at data available on April, Iran’s exports to Armenia fell by 59% compared with February and 63% compared with the same month a year ago, reaching $10.2mn. Imports from Armenia stood at $5.8mn in the fourth month, the report added.
Items of import that arrived from Armenia included foodstuffs, construction materials and industrial and medical equipment.
5.1.3​ Gross international reserves
Iran’s gold prices skyrocket in Iran
Iran’s gold market has skyrocketed, following suit with the dollar, euro and sterling prices on Iran’s so-called “free” market. ​The Azadi gold sovereign on May 13 hit IRR70mn while the Emami sovereign touched above IRR72.5mn.
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 2018.​ The country’s gross official reserves will experience a $13.3bn jump in the current year rising from last year’s $95.1bn.
Iran’s economy is set to fall deeper into recession this fiscal year and foreign reserves were set to drop to $73bn by March, a loss of almost $40bn in two years, the Institute of International Finance (IIF) stated in January.
5.2​ FTA, multilateral agreements
EEU countries scrap tariffs on 10 Iranian export categories under temporary PTA
The five nations that form the Moscow-led Eurasian Economic Union (EEU) have removed tariffs on 10 categories of exports from Iran as part of the two-year preferential trade agreement (PTA) with Tehran that commenced last October, according to an Iranian official cited by IRNA.
The temporary PTA between Iran and the trade bloc—which groups Russia, Kazakhstan, Armenia, Belarus and Kyrgyzstan—was the first such economic agreement signed by the Islamic Republic since it was founded in 1979. It is likely to turn into a fully-fledged economic and possibly, to an extent, political union if both sides keep to stick to the agreement and build on it. The accord applies preferential tariffs to 862 agricultural and industrial products, of which 502 are Iranian. Its tariffs vary, while some are eliminated altogether.
A member of the Mining and Trade Organization of Gilan Province in Iran, Mohammad Feyz, said the EEU said the tariff exemptions on the 10 additional
24​ IRAN Country Report July 2020 www.intellinews.com