Page 5 - IRANRptAug19

The Central Bank of Iran (CBI) on July 2 updated the official exchange rates. Several currencies weakened against the Iranian rial (IRR). Under the changed list of official rates, the US dollar remained at IRR42,000. Iranian officials have moved away from actively using the currency in the country’s daily dealings, avoiding US sanctions.
Iran should work to eliminate the gap that currently exists between the Iranian rial (IRR) market exchange rates and official exchange rate, according to the IMF, which will help tame and control inflation and reduce pressure on the exchange rate. The IRR is around two-thirds weaker against the dollar on the unofficial market compared to where it stood before it became clear early last year that the US was switching its Iran policy back to a sanctions-led approach.
Meanwhile, Iranian lawmakers have ratified a joint free-trade agreement struck between Iran and the Russian-led Eurasian Economic Union (EEU) on June 10. Iran sees access to Russia and the other markets in the EEU—Armenia, Belarus, Kazakhstan and Kyrgyzstan—as a major move in expanding its trading area to the north, with US sanctions continuing to take chunks out of its trade with other countries. The bill allows the government to authorise trading when other representative governments that are part of the bloc clear the FTA.
2.0 Politics
2.1 Remaining major power nuclear deal signatories to
meet Iran in Vienna to discuss saving accord
Remaining major power nuclear deal signatories Britain, France, Germany, Russia and China will meet Iran in Vienna on July 28 to discuss how to save the 2015 accord, the EU’s foreign policy service said in a statement on July 23.
“The meeting has been convened at the request of France, Germany, the United Kingdom, and Iran, and will examine issues linked to the implementation of the JCPOA [Joint Comprehensive Plan of Action, as the deal is formally known] in all its aspects,” the statement said.
What will be a sitting of the Joint Commission of the Joint JCPOA will be chaired by the EU foreign policy service’s Secretary General Helga Schmid.
The nuclear deal situation has been complicated by Iran’s seizure of a UK-flagged oil tanker in response, it is widely thought, to the UK seizing an Iranian tanker at what the Iranians see as the behest of the US, which walked out of the nuclear deal in May 2015. The imminent arrival of Boris Johnson in 10 Downing Street as Britain’s new PM may also bring some new policy influence to bear on European unity shown so far to preserving the nuclear deal, particularly if Johnson proves close to Donald Trump.
This week started off with UK Foreign Secretary Jeremy Hunt pushing for a European-led maritime security force in the Gulf to protect shipping from any further attempted seizures by Iran. But Iranian vice-president, Eshaq Jahangiri, on July 23 said any international coalition to protect the Gulf would bring only insecurity. “There is no need to form a coalition because these kinds of
5 IRAN Country Report August 2019 www.intellinews.com