Iran’s Economy Outlook

Market News

• In its latest forecast on Iran’s Economy, the Economist has announced Iran to experience 5.4% economic growth as well as one-digit inflation rate to hover around 9% in 2017. Besides, referring to the current administration’s success in bringing about economic and political prosperity, it predicted President Rouhani success in his second term.
• After the crawling increase in US dollar price to hit 37,430 IRR in the market, gaining 1,320 Rials over the past month, some concerns have popped up specifically over the implementation of the unification program defined by the Central Bank of Iran before 19 March 2016. In this regard, an official in the Banking and Monetary Institute assured that this price will not reach 38,000 IRR since there is no crisis in the country and referring to what was promised in Trump’s election campaign, no vulnerability is predicted.
• As a leading private bank in Iran, Bank Saman inked an MoU with DF Deutsche Forfait Group in the field of trade financing as well as offering services to investors interesting in entering into business with Iranian partners.
• In a meeting taken place between officials from Saipa Group and Bank Mellat, the CEO of Saipa Group stated that the group has managed to increase its production by 53% compared to the same period last year, contributing to about 0.5% of Iran’s Economy growth, which could not have been done without the support of the banking system and asked for the special attention to this industry as a key player in realizing the 5% economic growth. The CEO of Bank Mellat also stressed on the potential for growth, based on Saipa Group’s financial statements and expressed hope over the implementation of promises within the next month regarding the foreign exchange facilities, including opening LC.