– Stats show that the pace of money supply (cash component) growth in Iran Economy has been accelerated over the month of Mordad (Jul-Aug 2018) reached 39.7% which is the highest since 1390 (2011-12). This figure for the “near money” part was 17.5% that made the total number for money supply around 20%.
– On Monday, Oct 25, 2018, 10% of Avicenna pharmaceutical company offers publically for the first time on Iran Fara Bourse. The company has 35 mn shares and each individual and institutional investors can only place orders for 700 shares through book building method. The price range has been anticipated to be between IRR 3,000 and 3,300. This pharma producer has a development plant to go deep into coated dosage form drugs which are the baseline for anti-cancer pharmaceuticals.
– In an attempt to deepen their business relations, Iran & Turkey are to establish a dedicated bank easing the trade processes between the nations. Economy, Banking and Petrochemical, Iron ore and industrial part purchases are the areas of interest between two countries and in that regard and as the first step, an export guaranty fund shall be formed that assures any sale and purchases. The process of establishing such a bank will take at least 6 months and central banks of the two nations are responsible for keeping its shareholding structure intact.
– Reuters reports that IMF released its latest research on the global economy and of course Iran’s situation. According to news, IMF reduced Iran Economy growth rate to -1.5% for the year 2018 (previously was +4.4%!) and also predicted that Iran will face with an inflation rate of 29.6%. The unemployment rate would reach 12.8 as well which shows 1.1% growth.
– After the recent chaotic situation dominating the Iranian economy, Iran Chamber of Commerce offered an exit plan to the president Rouhani’s administration containing 12 reformative approaches. According to the headlines which the head of ICC sent the first VP, Eshaq Jahangiri, the government, most importantly, shall:
– After months of pointless disputes around joining CFT convention, Iranian Parliment finally voted “Ay” on the bill and as its result, Iran will officially join FATF countries’ list. Although the voting was anonymous, yet the numbers of senators in favour (143) outweighed the against members (120) and there were 5 blanks votes. This would have massive effects on the future of Iran’s banking and financial transactions in the absence of united states after their withdrawal from JCPoA.
– After the recent directive allowing Iran Central Bank to get involved with the nation’s FX market, now the cabinet members is to expand the scope of CBI activities even more to include not only FX policies but also monetary ones. Doing as such, the CBI has now granted 3 new instruments to balance the currency/monetary needs:
– After a series of wild and inept fluctuations of FX rates on the Iranian economy, caused USD/IRR pair to reach +19,000 level, yesterday and by the injection of some good news, the Iranian Rial appreciates and the FX market got relieved for a while when rates went south rapidly for both USD/IRR and Bahar Azadi gold coins. Analysts believe the following reasons are the main catalysts behind the other day’s downward rally:
– In an attempt to maintain the risks that brokerages firms take on their clients’ accounts, Iran SEO is to perform a pilot run of its newest risk management system from Oct 2nd, 2018. For the first step, there will be only authentication of clients’ accounts credit status and no preventing (rejection/confirmation of trades) measures. According to this new scheme, clients’ purchasable balance shall be calculated with regards to their dedicated credit amount and remaining cash balance at the end of the day.
– After the recent jumps of FX rates for the second time again, Iran Central Bank is to utilize Open Market Operation in order to maintain the falling value of Iranian Rial against foreign currencies. News has that CBI is going to allow authorized banks and exchange houses to inject FX into the market and maintain the current chaotic situation. The required resources to do as such will be supplied from the CBI currency reserves along with the export revenues of non-oil producers.