Page 17 - IRANRptJun18

Bulgaria supports JCPOA and looks for further trade with Iran
40.54% to $4.391bn, it added. Petrochemical exports alone edged up by 1.19% to reach $2.318bn and gas condensate exports alone moved up 10.54% to $1.29bn, the report also said. Interestingly, the latest figures show that despite the growing political tensions between the United Arab Emirates (UAE) and Iran, the UAE remained the second biggest importer and exporter in relation to the Islamic Republic. Previous figures from Qatar-Iran trade show the country stands far behind that of Persian Gulf rival UAE with less trade. The total value of trade between Iran and Qatar in the previous Persian calendar year increased 137% in the previous Persian calendar year (March 2017-18) hitting $275mn. Meanwhile, Iran’s total trade to Qatar in the last Iranian year stood at $248mn registering a 140% growth.
Bulgaria’s Minister of Economy, Energy and Tourism, Emil Karanikolov, has said Iran is a strategic partner for Europe and stressed the continuation of EU’s cooperation with Tehran during meetings with his Iranian counterpart on May 15, Islamic Republic News Agency reported. Europe is trying to protect its interests following the pullout of the US from the multilateral agreement on May 8. Iran's Minister of Economic Affairs and Finance Masoud Karbasian said in response: “During the meeting, Emil Karanikolov welcomed the development of bilateral cooperation and proposed solutions to provide more areas of cooperation,” without going into specifics. “Iran and Bulgaria have long-standing economic cooperation in the fields of industry, agriculture and transport, and this trip is a good opportunity to expand these relations for both sides,” he added. Karbasian added that in the field of joint ventures, the two countries should work together to set up a joint economic commission to facilitate trade.
5.1.3 Gross international reserves
Gold demand in Iran soars to 3-year high amid nuclear deal anxieties
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 World Gold Council said in a report released on May 3.
The report also outlined how as opposed to demand for coins and bars, Iran’s gold jewellery consumption fell 16% y/y in the first quarter to 10.7 tonnes. The Iranian government imposed a 9% value-added tax on gold jewellery last year, noted Alistair Hewitt, the council’s head of market intelligence. Iran’s central bank also increased the gold coins supply during the first quarter, reducing the premium a little, he said, adding: “These factors would have made coins a more compelling investment for many investors compared to jewellery.”
In battling the anxiety among Iran’s 80mn-strong population that dollars are becoming hard to obtain—only licensed banks may now buy and sell the greenback—officials have been at pains to point out that the country is not facing a currency crisis, but a crisis in accessing currency notes. Currency in the form of letters of credit is said to be relatively easily available to both the private or public sector. Only 5% of Iran's hard currency is estimated to be in the form of notes for sale in banks and exchange markets. Iran reported a $17bn currency surplus for last year, with non-oil exports coming in at $47bn and oil exports recording $55bn.
17 IRAN Country Report June 2018 www.intellinews.com