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Iran's foreign exchange reserve hits $100B

Aug 7, 2016, 8:50 AM
News ID: 1208
Iran's foreign exchange reserve hits $100B

EghtesadOnline: Iran’s foreign exchange reserve stands at $100 billion, Kamal Seyed Ali, head of the Export Guarantee Fund of Iran (EGFI), said.

Meanwhile the International Monetary Fund (IMF) earlier reported that the Iranian reserve of foreign exchange rose by $14.3 billion in 2015, registering a record of $125.9 billion, reports ILNA.

The IMF also forecasted that the reserve could slightly slim and settle for $125.6 billion in 2016.

Seyed Ali further said that the EGFI has issued $165 million worth of guarantees for exporters during the first four months of the current fiscal year (March 20-July 20) which indicates a 20-percent rise compared to the same period of the preceding year.

He further expressed hope that the Organization for Economic Cooperation and Development (OECD) will improve Iran's rating in the country risk classifications (CRE) from six to five in its upcoming meeting in October.

Seyed Ali said that Iran’s ranking improved one notch, moving from seven to six, according to the international body's latest risk classification table updated last June.

However considering Iran’s current level of foreign exchange reserve, the country’s good track record on debt payments, especially during the sanctions period and increasing revenues through non-oil exports the Islamic Republic’s CRE ranking should be three or even two, he added.

According to credit risk classification by the OECD, countries are divided into seven groups from low risk (1) to high risk (7). The Islamic Republic was placed in the 4th risk rating during in 2001 and was later moved to the 7th rating in recent years after the imposition of international sanctions.

The countries’ risk rating determines investment attraction limit, the cost of credit insurance and foreign financing.