Page 30 - IRANRptJul20
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Source: World Bank, CEIC
Iran’s total external debt at $9.33bn in March 2019
Iran's total external debt decreased 17% to $9.33bn at the end of the previous Persian financial year (ended March 20), according to the Central Bank of Iran (CBI) and IBENA on July 8.
Despite suffering from bad debt internally, Iran is in a remarkably strong position in terms of its international debt, most notably down to international lenders not being allowed to interact formally with the Islamic Republic.
The central bank report shows that Iran's external debt reached $9.339bn at the end of the Iranian fiscal year ending March 2019. In comparison, Turkey’s external debt reached $286.2bn at the end of 2018, according to its central bank, Hurriyet reported.
Iran’s short-term external debt totalled $7.18bn at the end of March this year and $2.15bn is mid-term and long-term debts.
The central bank report then switches to euros saying, “Iran’s potential commitment was placed at €8.23bn of which €6.33bn belongs to mid-term and long-term debts and €1.86bn belongs to short term debts”.
“At end of March 2019, Iran’s external debt was placed at $9.3bn, recording a decrease of $0.4 billion over its level at end-February 2019." the CBI said. The CBI added, "At the end of March 2018, Iran’s external debt was placed at $11.3bn, recording a decrease of $2bn over its level during Iran’s fiscal year.”
7.0 FX
Iran’s rial stumbles further setting new low against dollar
After weakening to a lowest ever rate of 200,000 to the dollar on the unofficial market on June 22, the Iranian rial on June 23 suffered another bruising day, at one point sinking to 205,000 but settling at 201,500 at the end of business hours.
The Iranian rial (IRR) on June 23 also hit record lows against the pound sterling and euro at 255,650 and 231,600, respectively, Bonbast.com reported on June 23. By the end of the trading day, the rial stood at 251,050 versus sterling and 227,8000 against the euro.
Iran’s continuing difficulties in battling its resurgent coronavirus (COVID-19) outbreak and the impact they are having on an economy already under huge strain from crushing US sanctions appear to have left he rial exposed to its latest rough ride.
The tension on Ferdowsi Street—known as the Tehran hub of FX trading with its many bureaux de change shops—is palpable, but Iranian President Hassan Rouhani insisted to Iran’s state broadcaster on June 23 that the currency difficulty was “temporary”.
Iran - FX
Jun-18
Sep-18
Dec-18
Mar-19
Jun-19
Sep-19
Dec-19
Feb-20
May-20
Currency (units per EUR) (eop)
49,268
48,754
48,011
47,165
47,754
45,926
47,055
46,543
45,835
Currency (units per USD) (eop)
42,590
42,000
41,995
42,000
42,000
42,000
42,000
42,000
42,000
30 IRAN Country Report July 2020 www.intellinews.com
