Economy

Iran Currency Market Unaffected by Presidential Election (Financial Tribune – 20 May 2017)

Governor of the Central Bank of Iran has dismissed claims that Friday’s presidential election would trigger fluctuations in the foreign exchange market, reassuring the public that all is calm in the Iranian currency market.

“In recent days, some have been trying to spread rumors in the country that after the presidential elections, foreign exchange rates would go up,” Valiollah Seif also wrote in his channel in the social media app Telegram.

These people, who are merely following their own interests and political goals, “have targeted the stability and calm of the economy”, the support for which has been underscored by Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei.

“While unable to witness and attest the stability of the economy in the foreign exchange market, these individuals have taken to denying the truth, which is an important achievement of the government,” Seif added.

Iran Fara Bourse Joins FEAS Executive Board (Financial Tribune – 20 May 2017)

Iran Fara Bourse has joined the executive board of the Federation of Euro-Asian Stock Exchanges.

Its membership was decided at the 23rd FEAS meeting held in Tehran on Tuesday.

Representatives of stock exchanges of Kazakhstan, Turkey, Armenia, Cyprus, Oman and Syria were present at the event, Securities and Exchange News Agency reported.

Cyprus Stock Exchange also became a new board member. It was also decided at the meeting that FEAS’s headquarters be transferred to Yerevan.

Armenia became the new rotating head of the organization.

Currently, FEAS has 33 members, 11 affiliate members, three observers and four bilateral members from 29 countries.

Energy

Petrochemical Investments Will Pay Off in 2 Years (IRNA – 20 May 2017)

It will take a minimum of two years for petrochemical investments to pay off, said an official at the state-run National Petrochemical Company, urging a mid- and long-term vision  to develop the key industry.

“We need to wait at least two years to see the impact of foreign investment in the petrochemical projects, such as employment and economic growth,” Hossein Alimorad, the NPC deputy for investment affairs, was cited as saying by IRNA.

“The perception of international companies about Iran has improved as they show strong enthusiasm to play a part in the post-sanctions market, particularly in the petrochemical field,” Alimorad said.

Last year, Iran was unchained from years of international restrictions imposed over its nuclear program following a landmark agreement with six world powers in 2015.

The lifting of sanctions allowed Iran to resume trade and collaboration with the world in an effort to make up for years of underinvestment and reenergize a backward economy.

Iran’s 2-month electricity exports tripled (Tehran Times – 20 May 2017)

Iran’s exports of electricity to its neighboring countries tripled in the first two months of the current Iranian calendar year, which began on March 21, compared to the same period last year, Fars news agency reported on Friday quoting an energy official.

According to Hooshang Falahatian, the deputy energy minister, it is not expected for the figure to stay at a 150 percent high all year, “it depends on the importing countries and maintaining the deals as well,” he said.

“However, it is estimated that electricity exports will experience a 50 percent rise by the end of the current [Iranian calendar] year,” Falahatian added.

The official further noted that Iraq has settled the second installment of its dues to Iran. Last January, Iran halted electricity supplies to Iraq because of the outstanding arrears, which have piled up to more than $1 billion.

With the second payment done, now the dues are reduced to $800 million.

National

EU Closely Watching Vote (Financial Tribune – 20 May 2017)

European Union foreign policy chief Federica Mogherini said the bloc is closely watching Iran’s presidential election, which was held Friday.

“On the elections in Iran, we obviously follow with a lot of attention,” Mogherini said at the press conference in Brussels on Thursday, according to the website of the European External Action Service.

On the impact of the vote on Iran-EU ties, she said, “What I can say is that we have worked with the Iranian authorities in these years in an intense manner on many different files. And in some cases we have some common ground and good cooperation, for instance on the implementation of the nuclear agreement.”

New US Sanctions Prompt Reciprocal Action (Financial tribune – 20 May 2017)

Iran added nine US individuals and entities to its list of sanctions for human rights violations and cooperation with Israel on Thursday, a tit-for-tat to the fresh US sanctions announced a day earlier.

That list had already targeted 15 US companies on March 26 in retaliation for a barrage of unilateral US sanctions at the time.

In his latest anti-Iran move on Wednesday, hawkish US President Donald Trump imposed narrow penalties on Iranian and Chinese figures for contributing to Iran’s ballistic missile program, even as he extended wide sanctions relief for Iran required under the 2015 nuclear deal.

“In response to the illegal move by the US administration … the Foreign Ministry of the Islamic Republic of Iran, in a reciprocal move, adds nine persons and firms to [its list of sanctions],” the Foreign Ministry announced in a statement carried by Iranian media.

The statement noted that the new sanctions targets “have a proven record of direct or indirect assistance to inhumane crimes of the Zionist regime in the occupied Palestine and the regime’s terrorist actions in support of takfiri terrorism and … its acts against the national security of the Islamic Republic.”