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barter system with Kazakhstan
Iran-Armenia trade grows 3.4% in Q1
relations, according to a summary of a phone conversation between Rouhani and Kazakh President Kassym-Zhomart Tokayev released on May 20. Rouhani also told his counterpart that it was important to develop rail and road transit and banking cooperation and to finalise an agreement on facilitating the issuance of visas for citizens of the two countries. As of October last year, Iran entered into a two-year preferential trade agreement with the Eurasian Economic Union (EEU), of which Kazakhstan is a member.
‘‘A barter system can deepen trade relations between the two countries, and Iran is ready to establish this mechanism,’’ Rouhani said, according to the Iranian president’s official website.
Kazakhstan on May 20 approved a bill on the ratification of an agreement between the country and Iran on mutual legal assistance in civil matters.
Recorded Iran-Armenia trade grew by 3.44% y/y to reach $74.6mn during the first quarter, ILNA reported on May 9.
Data issued by Armenia suggested that exports from Iran made up the bulk of trade. However, a significant chunk of exports from Armenia were not listed, including pork consignments and bootleg alcohol, which remains popular with a significant number of Muslim Iranians when it is not off-limits.
Imports from Iran’s small neighbour increased 104% to reach $19.1mn in the first quarter, while Iran’s exports to Armenia stood at $55.5mn, marking an 11.5% decline y/y.
The latter part of the quarter was affected by the onset of the coronavirus (COVID-19) outbreak. The closure of border crossings to help prevent the spread of coronavirus clearly hindered trade.
Looking at data available on April, Iran’s exports to Armenia fell by 59% compared with February and 63% compared with the same month a year ago, reaching $10.2mn. Imports from Armenia stood at $5.8mn in the fourth month, the report added.
Items of import that arrived from Armenia included foodstuffs, construction materials and industrial and medical equipment.
5.1.3Gross international reserves
Iran’s gold prices skyrocket in Iran
Iran’s gold market has skyrocketed, following suit with the dollar, euro and sterling prices on Iran’s so-called “free” market. The Azadi coin hit IRR108mn on the street, while the Imami peaked at IRR115mn on July 18.
According to the IMF in its Regional Economic Outlook on May 4, the value of Iran’s gross official reserves was estimated to 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.
Iran’s economy is set to fall deeper into recession this fiscal year and foreign reserves were set to drop to $73bn by March, a loss of almost $40bn in two years, the Institute of International Finance (IIF) stated in January.
5.2 FTA, multilateral agreements
Iran set to open commercial office in China as officials continue to work on potential ‘mega’
The Iranian Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) has announced it is to open a commercial office in Beijing, IRNA has reported. Iran is hammering out a 25-year agreement with China under which both countries will further integrate their economies. As part of the deal—still in draft form but in some quarters talked of as having a potential
23 IRAN Country Report August 2020 www.intellinews.com
