– After the other day’s news on USD/IRR Unification, the Central Bank of Iran changed the scheme of Iranian gold coin pre-sales. Following the administration’s decision to return stability to currency and gold markets, CBI’s chair announced that the pre-sale of “Bahar Azadi” coins shall be in line with the following table:
– Following the USD/IRR sudden jump surpassing the IRR 50,000 threshold, members of Iranian parliament criticized Iran Central Bank’s performance in managing the fluctuations and started to prepare a solution to establish calmness in the market. To this end, a meeting is planned between CBI officials and the Majlis Economic Commission members; in case the meeting fails to reach an agreement, the parliament commission will resort to a double-urgency motion to restore stability in the forex market later on. Nevertheless, the minister of economic affairs and finance has assured that such volatility is temporary and economic conditions will get back to normal soon.
– Following the recent hikes in USD/IRR and eyeing the future of global gold price, the options trades on Iranian gold coin future contracts took a pick on the very first days of the new year. More than 113,191 option contracts worth IRR 21,671 bn (cUSD 473.8 mn) have been sold during the first 3 days of 1397 (2018/19). The spot price of “Bahar Azadi” coins reached IRR +17,000,000 level amid yesterdays’ trade which offers a risk-free arbitrage opportunity of 26.58% profit in six months. CBI recently auctioned pre-sale of gold coins in 6 months and 1-year maturities at IRR 14,000,000 and IRR 15,000,00 levels. Paired with “short position”, an annual yield of 43.31% is not far-fetched. The below table demonstrates the details:
– As a part of President Rouhani’s transportation fleet renewal plan to reduce air pollution and fuel consumption, Iran’s truck fleet is to be renewed, which can pave grounds for resuming correspondent banking relations between Iran and Sweden. As estimated, this plan provides an investment opportunity worth EUR 5 mn, that in case financed by the Swedish party, might go beyond a mere business collaboration. In this regard, a Swedish delegation, made up of practitioners in financial services, insurance, banking, etc. fields, is also planned to pay a visit to the country on April 18th, to sit with members of Tehran Chamber of Commerce, Industries, Mines and Agriculture.
Tehran Stock Exchange went up by 342 points mostly influenced by mega-cap names like Esfahan’s Mobarake Steel and also thanks to better than expected Q2 performances of Metal producers. However, the value of trades in both the TSE and IFB was light ahead of the upcoming holidays.
– Following the foreign investors’ entrance to the real part of Iran’s economy, a female individual investor submitted her request to buy an 18.84% stake in Asia Insurance Co, (one of the Iranian Insurance Sector blue-chips) to the Central Insurance of I.R. Iran. Right now the SEO is evaluating the customer (KYC process) along with the possible routes of fund transfers. Earlier last year, Iranian government officially divested from Asia Insurance Company complying with latest privatization directives.
– Treasury Department of Iranian government announced the issuance of Sukuk Musharaka (on Iran Debt Market) worth IRR 2,000 bn (cUSD 42.03 mn) capitalizing the fast tracks (high-speed train) between Tehran, Qom and Isfahan provinces. These securities will be issued with a nominal yield of 20%, a maturity of 4 years and semi-annual coupon payments. The below table shows the latest status of Iranian debt market as of March 28, 2018.
– Following the policies to expand the scope of Iran Debt Market and providing Iranian companies with proper finances via debt securities, a new wave of corporate and governmental Sukuks are to be published soon on Iran Fara Bourse and Tehran Stock Exchange (see description below):
– In an interview, the head of the Securities and Exchange Organization of Iran enumerated the reasons for the 27% growth of the Tehran Stock Exchange major index (TEDPIX) in the current year. Referring to the whole trading value (4 exchange markets) exceeding IRR 2,100,000 (cUSD 47 bn) bn, he firstly mentioned President Rouhani’s administration’s economic policies to lower interest rate on banking deposits, which also dragged bonds yield rate and therefore, financing costs for companies down as well. Another factor was companies’ profitability growth, mostly due to facilities offered by the government and global commodity prices soar. A part of this growth was due to the USD/IRR increase, which raised export-oriented companies’ income. Applying changes to the halting-reopening mechanism of the market to accelerate the whole process played another crucial role by increasing the market liquidity. To all these, the reduction in trading commission must also be noted, which will show its positive effect in the long run.
– According to the Central Bank of Iran’s (CBI) statistics, the government’s tax income has surpassed its oil revenue of Iran’s Economy by IRR 76,000 in the first 10 months of the current year. In this regard, the Minister of Economic Affairs and Finance released a plan to revive the country’s current tax system in 2018/19 which contains 3 new tax bases as well as organizing tax exemption schemes mostly through lowering its ceiling in free trade zones and agriculture sector among other things.