Page 38 - IRANRptAug22

IMF forecasts Iran’s net debt at 44% of GDP
The International Monetary Fund (IMF) has estimated that the Iranian government's net debt reach around $260bn by the end of 2020, equivalent to 44% of Iran's GDP.
Before the reimposition of heavy US sanctions on Tehran in 2018, the net debt stood at less than $118bn.
Muddying the picture, however, is the fact that estimates of how much crude oil Iran manages to sell on the grey market despite US sanctions vary rather widely.
The IMF, meanwhile, has also calculated that Iran's total budget deficit for the current fiscal year will be around $58bn.
7.0 FX
Iran - FX
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
May-22
Currency (units per EUR) (eop)
47,215
49,274
51,609
49,171
50,004
48,773
47,613
46,888
45,264
Currency (units per USD) (eop)
42,000
42,000
42,000
42,000
42,000
42,000
42,000
42,000
42,000
Ruble, rial exchange window opens at Iran Currency Exchange as Putin arrives in Tehran
The Iran Currency Exchange (ICE) officially listed the ticker for the Russian ruble (RUB)—Iranian rial (IRR) pair on July 19, the same day Russian President Vladimir Putin arrived in Tehran for bilateral meetings, as well as trilateral meetings involving Turkey.
A first trade of RUB2mn was executed on the pair’s ledger immediately after the listing at an exchange rate of RUB 5,390.
The move follows an agreement made on banking between Iran and Russia during a recent Moscow trip undertaken by the governor of the Central Bank of Iran (CBI).
Discussions have been ongoing in recent weeks to open a currency exchange window between the two countries. This should change the situation in which those entering Iran with rubles are given poor exchange rates.
According to the CBI, the official exchange rate is RUB272 to the Iranian rial. On the black market, used in day-to-day transactions, the RUB was on July 19 trading at RUB5,800 — closer to the amount given in the official test transaction
“Having launched trading in this currency pair, Iranian exporters through banks and exchanges can offer the RUB at an agreed rate in this market, just like the dollar and the euro,” said Mostafa Ghamari-Vafa, head of the CBI’s press service.
38 IRAN Country Report August 2022 www.intellinews.com