Page 18 - IRANRptApr19

Dejpasand said.
“We must try to develop economic relations between the two countries in the fields of trade, investment and science and technology,” he added.
The joint Iranian-Chinese Bank of Kunlun has repeatedly said it was set to restart banking connections with Iran.
In 2012, the US used the Comprehensive Iran Sanctions, Accountability, and Divestment Act of 2010 (CISADA) against Kunlun to bar it from accessing the US financial system.
The bank remains under sanctions triggered by that move, even though 100% of its trade is conducted in Chinese yuan and euros.
5.1.3 Gross international reserves
Iran’s gold Imami sovereign breaks IRR25mn barrier amid dwindling hard currency supplies
CBI has over €70bn in hard currency reserves
Iran’s gold sovereign of choice, the Imami, has again broken the IRR25mn barrier as buyers continue to purchase remaining stocks of the officially minted 18-carat coin, IBENA reported on June 18.
Iranians’ attraction to gold as a safe haven has intensified with hard currency supplies dwindling in Iran following legal changes suddenly brought in in early April to arrest the stark descent of the Iranian rial (IRR), hit by souring sentiment over Iran’s economic prospects in the face of hostility from the US Trump administration. The move banned open market trading of foreign exchange and made unofficial rates illegal.
In early May, a World Gold Council report said that gold coin and bar demand in Iran shot up to a three-year high of 9.3 tonnes in the first quarter as Iranians —correctly—anticipated that the consequences of deteriorating relations with the US would cause Tehran to introduce currency controls.
The Azadi gold coin, the former number one sovereign sold by the Central Bank of Iran (CBI), also reached a historic high on June 18, topping IRR24mn a coin, while smaller half-sovereigns increased in price accordingly.
According to the IMF in its Regional Economic Outlook on May 4, the value of Iran’s gross official reserves will 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.
The Central Bank of Iran (CBI) has more than €70bn in hard currency reserves, according to the National Development Fund of Iran (NDFI). However, as restrictions continue on trade and withdrawal of cash from forex reserves, the country is looking for ways to find new revenues of hard currency.
5.2 FTAs
Iran and Iraq sign preliminary trade deals during Rouhani visit
Iraq and Iran signed several preliminary trade deals on March 11, the first day of Iranian President Hassan Rouhani’s first official visit to the Islamic Republic’s neighbour. Iran hopes building ties with Iraq will help offset the impact of US sanctions on its economy.
A plan to build a railway linking the neighbouring countries and signed memoranda of understanding on oil, trade and health were presented by Rouhani and Iraqi Prime Minister Adel Mahdi. The railway is to link the southern Iraqi oil city of Basra and the Iranian border town of Shalamcheh. Moves to make it easier for businessmen and investors to obtain visas, and a
18 IRAN Country Report April 2019 www.intellinews.com