Iran: economy, ForEx and banks
The best Forex brokers for Iranians
Iran, officially the Islamic Republic of Iran. A large Muslim state, known as Persia until 1935.
A country with large oil and gas reserves (3rd largest gas producer in the world), member of the OPEC oil cartel.
Economy of Iran
Iran is one of Asia's largest economies in terms of GDP. However, its economy is strongly affected by international sanctions, which were first imposed on it in 1979. Iran has lived under sanctions for decades. Periodically they are eased or increased (oil embargo, etc.). The country is still disconnected from the SWIFT payment system, so it cannot make international payments.
Much of Iran's economy is tied to oil, although decades under sanctions have prompted Tehran to develop other sectors: car manufacturing, tourism, etc.
Iran's per capita GDP figures are not impressive, especially in nominal terms. Iranians' salaries are small, and the state is far from the top 20 countries in terms of average wages. Pensions in Iran are also low. There is no fixed value. There are two dozen pension funds, and pensions are based on individual savings. Payments are small because wages are small and you can't save much. The state constantly subsidizes the pension funds with injections from the state budget.
Iran: macroeconomic overview
Unemployment is high in Iran. Officially it is 10.4% in 2019, but in reality experts believe it is much higher. A great many Iranians have left for other countries. Some for high salaries, some for a free lifestyle.
Because of sanctions, the Iranian rial is constantly falling, which also negatively affects the financial strength of the country and the provision of citizens. Experts note a very high level of corruption. On the one hand, Iran has the strictest laws, criminals are not treated with mercy, and people are always executed. In reality, all of the more or less high-ranking officials live far better than ordinary citizens, and everyone understands where their money comes from.
Iran's public debt is negligible - just 2.4% of GDP in 2018. This is easy to explain: no one lends to a country under sanctions pressure.
The mainstay of Iran's exports is oil. Of the $62.6bn in revenues, $43bn is crude oil sales. Others: polymers $2.66 billion, metals $1.65 billion, alcohol $1.65 billion, refined oil $1.42 billion.
Major imports from Iran: cars $3.47 billion, corn $1.67 billion, rice $1.4 billion, auto parts $1.34 billion and soybeans $951 million.
Stock market in Iran's economy
The Iranian stock market is represented by the Tehran Stock Exchange. It is the only stock exchange in the country.
Key index: TEPIX (which shows the value of all shares on the exchange).
The Iranian exchange is regulated by:
- Supreme Securities and Exchange Council,
- Securities and Exchange Organisation.
The Exchange of Iran offers shares, fixed income bonds, mutual funds and other exchange products for trading.
Forex brokers in Iran
When trading forex, a novice trader is advised to do so with caution. The forex market is complex and risky. As a result they are not suitable for everyone. You can lose all your money in a short period of time.
If you want to join other forex traders in Iran, besides understanding the market trends, it is important for you to choose the right broker. However, the best Forex brokers for Iranians are available here: https://best-forex-brokers-in-iran.com/
Iran's Top Banks ($ assets):
- Bank Melli Iran - 9.6 billion.
- Bank Mellat - 6,27 billion
- Parsian Bank - 5,05 billion
- Tejarat Bank- 4,77 billion
- Bank Pasargad Iran- 3.55 bln.
- Mehr-e-Eghtesad Bank - 3.29 billion.
Due to sanctions Iranian banks operate outside the SWIFT system, therefore they cannot conduct international transactions. To do so, they have to take circuitous routes, in particular by sending and receiving payments through third countries.