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CBI has over €70bn in hard currency reserves
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 opens trading house in Bishkek
EEU member states approve roadmap to bring Iran into free trade zone
Iran has opened a trading house in Kyrgyzstan’s capital city of Bishkek, Mehr News Agency reported on November 15. Iran’s trade volume with Kyrgyzstan is minimal compared to commerce conducted with the rest of Central Asia. For instance, the trade numbers with Kazakhstan, which lies across the Caspian Sea, are boosted by an arrangement under which Iran uses Kazakh farms to grow required grain.
The trading house in Bishkek was opened by Iran’s deputy minister for management development and resources, Alireza Daliri, the Iranian ambassador to Bishkek Ali Najafi and the chair of the Kyrgyz Chamber of Commerce and Industry, Marat Sharhekeev.
Several CEOs of Iranian private companies were present at the inauguration ceremony. The business centre intends to facilitate transactions for traders wishing to embark on business in either Iran or Kyrgyzstan.
The Commission Council of the Russia-led Eurasian Economic Union (EEU) has approved a roadmap for Iran’s entry into a free trade zone to be shared with the trade bloc, AzerNews reported on September 22.
Trade between the EEU—which groups Russia, Kazakhstan, Kyrgyzstan, Armenia and Belarus—reached $2.7bn last year.
Since it was founded in 1979, the Islamic Republic of Iran has never managed to conclude a free trade agreement (FTA) with another country or economic bloc . In recent months, Tehran has repeatedly pushed Moscow to enable the sealing of the EEU deal. Iran sees access to Russia and the EEU as a major step to expanding its trading area to the north.
The applicable FTA list of goods for EEU countries in the deal with Iran would include meat and fat-and-oil products, certain types of confectionery, cosmetics and electronic and mechanical equipment. Iran on the other hand would enjoy tariff preferences on items including vegetables, fruits, dried fruits and building materials. Iran’s deal with the EEU will include most commodity groups, however, there remains a doubt whether automotive and industrial machinery will be covered by the deal.
22 IRAN Country Report February 2019 www.intellinews.com