Page 19 - IRANRptNov18

Iran clamps down cross-border traffic flows to Iraq amid currency turmoil
Afghanistan and India.
Most imports came from China, the United Arab Emirates, the Republic of Korea, India and Germany.
Islamic Republic of Iran Customs Administration (IRICA) has banned cars from departing the country for Iraq through the western Shalamcheh border crossing, IBENA reported.
Iran has clamped down on cross-border traffic flows to Iraq in recent weeks following the collapse in the value of the rial against the dollar and other hard currencies amid the reimposition of US sanctions. The exchange rate shift has made it more attractive for some traders to sell their goods outside of the country. For instance, earlier this week there were reports of the panic buying of tomato paste given sudden market shortages. The government banned tomato exports to help curb the situation, but trade association representatives claimed tomatoes were still being smuggled out of Iran to foreign markets. Export bans on other fruit and meat have also been applied lately by Iranian authorities.
Mohsen Memari, chief patrol officer for the Shalamcheh border crossing in Khuzestan province, reportedly said that due to high traffic volume on the roads leading to the border post, cars with temporary cabotage (the transport of goods or passengers between two places in the same country by a transport operator from another country) have been banned by customs officials from entering Iraq.
He added that the entry of buses, vans and minibuses was still allowed.
Iran has seen surges of Iraqis, Armenians, Turks and Azerbaijanis crossing its borders to exploit the collapse of the rial by obtaining food and fast moving consumer goods (FMCG) at bargain-level prices fixed by government decrees. In recent months, the sight of products as large as cookers and gas fires being shipped out of the country has not been unusual.
5.1.3 Gross international reserves
Iran’s gold Imami sovereign breaks IRR25mn barrier amid dwindling hard currency supplies
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.
19 IRAN Country Report November 2018 www.intellinews.com