Iranian Rial

[screwball]

 this pseudo-price will be broken in markets.......

[blueskyline]

Very interesting statement 

[blueskyline]

The Same to you Screwball . Thank You and Happy Holidays 

[WheresmyRV?]

23 minutes ago, screwball said:

In the government’s opinion, the dollar’s current exchange rate is not real and this pseudo-price will be broken in markets,”

"broken" ?..,,,,

[screwball]

Iran's sovereign state fund is ready to bankroll projects involving the export of goods and techno-engineering services to Latin American countries, announced the fund's director.

"The National Development Fund of Iran is able to provide credit to sellers and buyers, issue advance payment guarantee and finance the equipment of workshops in overseas projects of Iranian contractors," Ahmad Doust-Hosseini was also quoted as saying by IBENA.

He made the statements in a gathering of high-ranking officials from Latin American embassies based in Tehran.  

Doust-Hosseini elaborated by saying that when an Iranian company wants to work on a power plant or a petrochemical project in the region, the NDFI can grant loans to the foreign company for buying the equipment from Iran.

"Should a registered company in a South American state wish to purchase goods from Iran and manages to open letters of credit through an eligible foreign bank for  the Iranian beneficiary, the fund can pay the money to the Iranian seller in cash," he said.

The foreign buyer, he added, would pay back the amount within a year or two, adding that financing projects of four to five years would entail a "precise review of the project's details".

Doust-Hosseini noted that the fund does not allocate loans for the export of raw materials such as iron ore and crude oil.

However, he added, the NDFI would help by providing loans and finance to projects concerned with "steelmaking, petrochemical products, power plants, hotel construction, etc. outside the country".

According to the NDFI chief, funds will be allocated to buy equipment from Iran covering up to 85% of goods to implement the projects.

There is another caveat that "at least 60% of the value of the production must take place in Iran", he stressed.

Int'l Trade Rules

Doust-Hosseini further said NDFI will support Iranian export projects in Latin American countries within the framework of general regulations of international trade and export finance "that are currently being implemented in OECD countries".

The Organization for Economic Cooperation and Development is an intergovernmental economic organization with 35 member countries, founded in 1960 to stimulate economic progress and global trade.  

 "But under the current competitive circumstances and keeping in mind the conditions of Latin American countries, NDFI will consider more favorable conditions for these countries regarding exports from Iran," he said.

This week the parliament voted to raise NDFI's share of petroleum revenues to 30% for the sixth five-year development plan (2016-21), up from the previous 20%.

Based on the bill, the National Development Fund’s share of Iran’s crude oil, natural gas and condensate sales will increase by a minimum of two percentage points each year until the end of the plan.

[screwball]

The Central Bank of Iran, in a statement on Saturday, informed businesses to approach the banking system for purchasing foreign exchange.  

“Back in July, the banking system was authorized to trade in foreign currencies at the open market rate and lenders are currently prepared to meet the foreign exchange needs of businesses,” reads the statement published on CBI's website.

The statement comes in the wake of the recent US dollar rally in Tehran market, which the CBI insists is mostly fueled by market speculations, the website of the Association of Bureaux de Change Operators of Iran said.

The US dollar broke the 40,000-rial threshold in Tehran's market on Wednesday, recording an all-time high. It was sold for 40,200 rials at the close of trade on Wednesday

The greenback changed hands at 40,500 rials late Saturday.

The central bank has also announced that the forex rally is transitory  and will be over by the end of the current fiscal year (March 20), rejecting claims that the government is in favor of increasing forex rates to make up for its budget deficit.

CBI also expects an immediate drop in the US dollar's exchange rate after the New Year’s Eve.

According to the statement, the central bank will provide the banking system with hard currency to meet the importers’ need.

CBI will also continue to offer foreign currencies at the official subsidized rates, a move condemned by the private-sector activists as harming production and giving rise to rent-seeking.

Back in July, CBI allowed commercial banks for the first time to trade in the parallel foreign exchange market, as part of the initiative to scrap the dual exchange rates and move toward a floating currency regime.  

According to the CBI statement, banks in recent weeks have been authorized to offer more services in foreign currencies.

[screwball]

The central bank has also announced that the forex rally is transitory  and will be over by the end of the current fiscal year (March 20), rejecting claims that the government is in favor of increasing forex rates to make up for its budget deficit.

CBI also expects an immediate drop in the US dollar's exchange rate after the New Year’s Eve.

Edited December 25, 2016 by screwball

[screwball]

Alphaliner has listed the Islamic Republic of Iran Shipping Line as the 20th operator among the top 100 container lines, with a total capacity of 99,867 TEUs over 47 ships.

Information from the corporate website indicates tonnage ranging from 1,000 to 6,500 TEUs, but it appears that most of its current fleet is under 5,000 TEUs, reads an article recently published by the American Journal of Transportation. Below is the full text.

 Negotiations With Hyundai

IRISL’s operating portfolio is modest by today’s standards, but all that is about to change.

On December 9, they reached an agreement with Hyundai Heavy Industries to build 10 ultra large vessels at Hyundai’s Ulsan yards in South Korea. Stretching 2.5 miles along Mipo Bay, Ulsan is the world’s largest shipbuilding operation. When the “new build” frenzy began to cool between 2008 and 2010, shipyards were left holding the bag on unfulfilled orders.

Delivery dates slipped and contract prices were renegotiated leaving shipyards in a slump that continues today.

Hyundai began negotiations on Iranian ships in 2005, but plans were sidetracked as the world’s economy weakened. Finalizing this order will breathe new life into Hyundai.

The Ulsan yard will build six chemical tankers and four ultra large container vessels each at 49,000 DWT with a capacity of 14,500 TEUs. Delivery of the first of these mega container ships is scheduled for 2018. An additional two ULVs may also be in the works upon the completion of the initial order.

The total for tankers and container ships is said to be worth $2.4 billion.

  Challenges, Opportunities

As a niche player with limited capacity, IRISL had adequately filled their country’s maritime needs and had additional container slots to sell on the open market. Mega vessels will require more aggressive marketing and greater sophistication in handling at load and discharge centers. Some of this expertise will be provided by CMA-CGM that has entered into an operating agreement with the line. This agreement comes on the heels of more open trade, as nuclear sanctions are lifted and world commerce once again flows through Iranian ports.

Several carriers, including Evergreen and MSC, reopened calls to Iran this year with the potential for United Arab and Maersk to enter the market after January. Renewed trade with Europe will commence with the further loosening of sanctions.

IRISL will surely capitalize on their expanding container fleet and slot charter agreements with their carrier partners.

  Capital for Investment

The United States paid Iran several billion dollars in frozen assets as interest against a failed 1979 arms deal. Payments began after the UN Security Council lifted the nuclear sanctions, which triggered Iran’s maritime development.

As IRISL began to examine options for fleet development and trade expansion, world markets opened up and international partners such as Hyundai and CMA-CGM came on board.

Funding for construction and development of Iran’s maritime interests came along with it.

  Ambitious Plans

Hamid Rezaeian-Asl, managing director of the Iran Shipbuilding and Offshore Industries Complex Company, announced an agreement with Hyundai Heavy Industries for financing and technical knowhow at their facility near Bandar Abbas.

Opening in 2006, the ISOICO facility sits on 1,100 hectares of land with a 380-hectare marine basin. Initial projects included design and construction of several passenger liners and feeder-max container ships.

The yard has the capacity to build and repair larger vessels and Hyundai will advance Iran’s ability to produce VLCC and ULCC class container ships.

  A Bright Future

With the infusion of money and expertise from world sources, IRISL has announced plans to become a top 10 ranked Alphaliner carrier by 2020.

China has also been invited to visit the ISOICO shipyard and last year there were even negotiations for the Chinese to build 18,000 TEU ships for the line.

The future of Iran’s maritime interests is extremely bright. Of course, having the money to invest in the expansion of national fleet and shipbuilding facilities is crucial.

The world seems to be at Iran’s doorstep; even the United States did $152.4 million in exports this year.

As IRISL expands port calls to Europe and increases trade routes to Asia and Africa, whether Iranian ships will dock at US ports any time soon remains to be seen.

[screwball]

Iran's oil export grades topped the $50-per-barrel mark in the week ending Dec. 16, supported by a decision of OPEC producers and outside producers to slash production to alleviate a global oversupply that has depressed prices for more than two years.

Iran Heavy, the country's main export grade, traded at $51.70 per barrel in the week, gaining $2.02 over the previous week. Iran's light crude averaged $51.70 a barrel in the said period, up $1.04, Shana reported on Saturday, citing a report by the Oil Ministry.

Iran's heavy and light blends have averaged $38.68 per barrel and $40.60 per barrel respectively in 2016.

Members of the Organization of Petroleum Exporting Countries reached a decision last month to reduce production by more than 1.2 million barrels to lock their collective output at 32.5 million barrels per day through the first half of next year. Some non-OPEC countries, including Russia, pledged to cut production by another 600,000 barrels.

Oil is trading around its highest since mid-2015. International benchmark Brent crude was down 34 cents at $54.71 on Friday, the last trading day in the US and Europe. It reached $57.89 per barrel, the highest since July 2015, on Dec. 12. US West Texas Intermediate crude fell 37 cents to $52.58

However uncertainties on whether producers will stick to their planned cuts have pared gains.

OPEC's basket price of 14 crudes settled down last month at $43.22 per barrel from the October average of $47.87 a barrel, according to OPEC's monthly report.

Share This :

Short URL : https://goo.gl/QjI2fx

[screwball]

Malaysia eyes bilateral FTA with Iran

Sat Dec 24, 2016 9:42AM

1. Home
2. Iran
3. Economy

File image of Malaysia’s Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong 

Malaysia has announced that it will pursue free trade agreement (FTA) talks with Iran as part of efforts to expand bilateral trade ties between Tehran and Kuala Lumpur.

“We will visit Iran towards the end of January next year and will try to negotiate for more Malaysian products to be brought into the country,” Malaysia’s Plantation Industries and Commodities Minister Datuk Seri Mah Siew Keong was quoted by the Star Online as saying on Friday.

The Malaysian official described Iran as an important country in the Middle East, and said clinching a bilateral FTA with Iran “would allow Malaysia to gain a first-mover advantage.”

He also described the FTA as “a good move” that would provide “a huge opportunity” for exporting Malaysian products, particularly rubber and palm oil, to get into Iran’s market.

Earlier this month, Malaysia’s Minister of International Trade and Industry Minister Datuk Seri Mustapa Mohamed said Tehran- Kuala Lumpur trade volume stood at USD700 million in 2015.

“In terms of bilateral trade, the volume has been small, about USD 700 million (RM3.14 billion) in 2015 but we hope, since the sanctions have been lifted, to boost Malaysian exports (to Iran) especially palm oil,” he noted.

Iranian and Malaysian officials have already unveiled plans for doubling the level of trade exchanges between the two countries.

Iranian President Hassan Rouhani, during his visit to Malaysia in October, announced that Iran and Malaysia are resolved to restore their bilateral relations to pre-sanctions levels and double trade exchange volume.

[screwball]

ode: 82359497 (5738087) | Date: 24/12/2016 | Time: 20:37|

Print Version |Send To Friend

 

Dollar gain to rials does not mean devaluation of national currency

Tehran, Dec 24, IRNA – Deputy Minister of Economy and Finance for Banking, Insurance and State Companies Affairs Hossein Ghazavi said on Saturday that dollar gain to the rials does not mean devaluation of national currency.

 

Ghazavi said that dollar appreciated over the past weeks due to increase in its parity rate against all currencies.

'Devaluation of rial parity against dollar is also the impact of global growth in demand for dollar but does not mean devaluation of national currency.'

Over the past several weeks, dollar rate registered fluctuation with gain to the rials, Iranian national currency.

Currently, Central Bank of Iran (CBI) should maintain stability in the market and prevent fluctuation of the forex market and that intervention is not necessary to meet a specific parity rate, commented the official.

Qazavi, who was addressing the nationwide seminar of Tejarat Bank directors, also commented on drafting a joint bill by Ministry of Economy and Finance and the CBI on banks, saying that in case of approval of the bill, major changes will take place in method of calculating profit of the overdue facilities of banks.
1420**1416

[screwball]

Publish Date: Sat, 24 Dec 2016 18:49:43 GMT

Service: Iran

 

 

Airbus deal ends oldest anti-Iran sanction: Envoy

Iran's contract with Airbus to purchase 100 passenger planes has put an end to the most prolonged sanction against the country, said Iran's ambassador to Britain.

Hamid Baeidinejad said on Saturday in a post on his Instagram page that the contract with Airbus, like the one with US Boeing, is among the most important achievements of the July 2015 nuclear deal known as the Joint Comprehensive Plan of Action (JCPOA), IRNA reported.

Despite all doubts about the possibility of a deal with France's Airbus which continued to even to the last moment, the preliminary contract was signed during Iran's President Hassan Rouhani historic visit to Paris in January, said the senior diplomat.

Such doubts indicated that the contract with Airbus is no ordinary trade deal due to the following reasons:

1. This contract puts an end to the most long-standing sanctions against the Iranian aviation industry since the victory of the Islamic Revolution in Iran. For forty years Iran has been unable to purchase new aircraft.

2. The speedy implementation of the contract deserves attention. Seven or eight of the planes will be delivered to Iran in 2017.

3. Once the new aircraft join the Iranian air fleet, the country will witness a boom in its aviation industry. Last year, Iranians purchased tickets worth about $5 billion to foreign destinations all from foreign airline companies that in fact have taken over the Iranian market due to absence of enough aircraft. This is while in Iran we are suffering from unemployment among pilots and aviation industry engineers many of whom have been compelled to take jobs with foreign companies.

4. The deal, valued at about $20 billion and the credit for which will be provided in ten years through finance and sale of tickets, will result in the expansion of economic cooperation with Germany, France and Britain as the main Airbus partners. It will also play an effective role in improving banking and financial relations between Iran and a number of important European countries.

5. Though negotiations on the Airbus deal were conducted under particular conditions, the Iranian team managed to win good discount on the deal.

Airbus and Iran's civil aviation carrier Iran Air signed the final contract for the purchase of 100 passenger planes, Airbus announced on its website on Thursday.

Describing the hefty contract as historic, the Europe-based multinational passenger plane producer said that based on the agreement between the company and the Iran Air, Iran can securely purchase 46 planes from the A320 family class, 38 planes from the A330 family class and 16 A350 XWBs.

The first batch of the passenger aircraft is expected to be delivered to the Islamic Republic of Iran in early 2017.

Iran Air Managing Director Farhad Parvaresh and Airbus Managing Director Fabrice Bregier signed the new contract on Thursday, the report said.

At the signing ceremony, Airbus managing director said that the general contract between the Airbus and the Iran Air covers pilot training and the air traffic management.

[screwball]

Guess rial for euro exchange is closer than we think...

[screwball]

Publish Date: Sat, 24 Dec 2016 18:53:49 GMT

Service: Iran

 

 

Banking ties with Kyrgyzstan reviewed

Governor of the Central Bank of Iran (CBI) Valiollah Seif and Chairman of the National Bank of the Kyrgyz Republic Tolkunbek Abdygulov reviewed ways to boost cooperation in the banking sector.

A CBI statement said that in the meeting, which took place during Iran's President Hassan Rouhani's visit to Kyrgyzstan, Seif and Abdygulov held talks on developing banking ties to boost trade exchanges between the two countries, IRNA reported.

The two officials also considered using Iran and Kyrgyz national currencies in bilateral trade.

Outlining Iran's post-JCPOA attitudes and approaches towards its northern neighbors, especially Kyrgyzstan, Seif called for speedy signing of a memorandum of understanding between the central banks of the countries to address the concerns of businessmen and help solve their problems.

Abdygulov said that he is planning to visit Iran along with a delegation of the heads of Kyrgyz banks with the aim of initiating cooperation with Iranian banks.

President Hassan Rouhani was in the Kyrgyz capital, Bishkek on December 22.

KeyWords

bank

Kyrgyzstan

Iran

 

Comments

 

Comment

Name:
Email:
Comment:
Security Key:

[screwball]

The Central Bank of Iran, in a statement on Saturday, informed businesses to approach the banking system for purchasing foreign exchange.  

“Back in July, the banking system was authorized to trade in foreign currencies at the open market rate and lenders are currently prepared to meet the foreign exchange needs of businesses,” reads the statement published on CBI's website.

The statement comes in the wake of the recent US dollar rally in Tehran market, which the CBI insists is mostly fueled by market speculations, the website of the Association of Bureaux de Change Operators of Iran said.

The US dollar broke the 40,000-rial threshold in Tehran's market on Wednesday, recording an all-time high. It was sold for 40,200 rials at the close of trade on Wednesday

The greenback changed hands at 40,500 rials late Saturday.

The central bank has also announced that the forex rally is transitory  and will be over by the end of the current fiscal year (March 20), rejecting claims that the government is in favor of increasing forex rates to make up for its budget deficit.

CBI also expects an immediate drop in the US dollar's exchange rate after the New Year’s Eve.

According to the statement, the central bank will provide the banking system with hard currency to meet the importers’ need.

CBI will also continue to offer foreign currencies at the official subsidized rates, a move condemned by the private-sector activists as harming production and giving rise to rent-seeking.

Back in July, CBI allowed commercial banks for the first time to trade in the parallel foreign exchange market, as part of the initiative to scrap the dual exchange rates and move toward a floating currency regime.  

According to the CBI statement, banks in recent weeks have been authorized to offer more services in foreign currencies.

[screwball]

Iran tells banks to sell dollars at free rates

Sun Dec 25, 2016 7:25AM

1. Home
2. Iran
3. Economy

The Central Bank of Iran (CBI) has authorized banks to deal in foreign exchange trading at a free-market rate.

The Central Bank of Iran (CBI) says it has authorized banks to deal in foreign exchange trading at a free-market rate – a move which is expected to help control the rising rates of the dollar.   

A statement on CBI’s website called on merchants and traders to refer to the authorized banks and purchase their required dollars, adding that this would channel foreign exchange operations by individuals and entities to banks and decrease their risks.

The statement added that the banks could also purchase the foreign currencies of exporters of non-oil products “at a rate set by agreement between the bank and the customer". 

This, it emphasized, would be carried out through diplomatic missions that are based in Iran as well as the representation offices of foreign investors and also the branches of foreign banks.   

The banks could accordingly sell the foreign currencies thus purchased themselves or through other banks and even certified exchange shops, CBI’s statement added.

Iran operates two exchange rates, a free market rate, which was at around Rials 40,140 to the dollar on Saturday and an official rate used for some state transactions, set by the central bank at around Rials 32,300, Reuters reported.

In recent months, the CBI has raised the official rate gradually to shrink the gap between the two. It has said it wants to unify the exchange rate, to make the economy more efficient and create a level field for private firms competing with state institutions with access to cheaper foreign exchange, Reuters added.

The CBI further emphasized in its statement that it would provide the required dollars for the banks to enable them to meet customers’ needs.

However, the media in Tehran are already voicing doubts if this policy would ever work.

The Persian-language newspaper Ta’adol quoted an unnamed trader in Tehran currency market as saying that the CBI through the new policy was trying to bring the chain of supply and demand of foreign currencies under its own control. 

The ultimate objective, the trader added, was to reduce the role of middlemen in increasing the rates of foreign currencies – particularly the dollar.

“But the truth is that this kind of supplying foreign currencies to the market [as devised by the CBI] cannot answer all market demands,” Ta’adol quoted the trader as saying. 

“This is due to the red-tape that exists in banks for trading foreign currencies.  Therefore, most customers would still prefer to refer to the foreign exchange shops”. 

Another Persian-language newspaper Jomhouri-ye Eslami criticized CBI’s move and said it would only deteriorate the situation of the Rial against the dollar in Iran’s foreign currency market. 

“Is this move … not an example of CBI’s interference in the foreign currency market at the current juncture that the dollar has been rising rapidly?” wrote the daily.

“This is a question whose answer will emerge within the next days”.  

[screwball]

The greenback's rate reached 41,000 rials on Sunday, recording a new all-time high.

Subsequently, Governor of Central Bank of Iran Valiollah Seif said banks should reclaim their “historic and fundamental” role in the foreign exchange market.

Seif made the statement in a meeting with bank executives, as the greenback continues its nonstop rally in Tehran's market.

“Once banks expand their forex operations, moneychangers will go back to their own legally defined business and this would enhance the health and security of foreign trade,” CBI's website quoted Seif as saying on Sunday.

“No considerable measure has been taken by banks yet, even though new regulations give banks more space for offering forex services. Lenders cannot guarantee their profitability only by relying on transaction fees. They need to offer a wide range of services.”

In a statement on Saturday, CBI informed businesses to approach the banking system for purchasing foreign exchange, noting that banks have been permitted to trade foreign currencies at the market rate since July.

The move was aimed at helping the central bank implement its plans for unification of foreign exchange rates by the end of the Iranian fiscal year.

But the new call comes after continued growth in the US dollar's exchange rate against the rial in recent weeks.

The currency registered a significant growth in the past 30 days, compared with November 26 when it was sold for 37,660 rials.

The central bank has announced that the forex rally is transitory  and will be over by the end of the current fiscal year (March 20), rejecting claims that the government is in favor of increasing forex rates to make up for its budget deficit.

CBI also expects an immediate drop in the US dollar's exchange rate after the New Year’s Eve.

Topics

Tehran Currency MarketForex MarketCentral Bank of Iran

Share This :

Short URL : https://goo.gl/vuTVe5

[screwball]

The ratified measures would increase the transparency of administrative accounts. 

1. Economy
2. Business And Markets

Monday, December 26, 2016

Majlis Passes Key Financial Transparency Measures 

Clause two of Article 20 legally binds the CBI to create an electronic platform to be used by banks and non-bank credit institutions for inquiries concerning credit scoring and tax arrears, among other things

 

 

Lawmakers approved measures on Saturday requiring the Central Bank of Iran to prepare the grounds for undertaking constant oversight over the banking sector by establishing an online supervisory system.

The measure was embedded in Article 20 of the sixth five-year development plan (2016-21), which was passed by a vote of 149 to 17 with the abstention of three lawmakers. A total of 214 members were present, Banker.ir reported.

According to the first clause of the article, the central bank is obligated to establish an online supervisory system in the first year of the Sixth Plan (2017-18). The goal will be to pave the way for sustained and preemptive supervision in the banking system to prevent potential violations.

Five-year development plans have been designed by the government to help achieve sustainable growth. The Sixth Plan stipulates the utilization of the country’s full capacities and resources to achieve sustainable and rapid economic growth at an annual average rate of 8%.

Clause two of Article 20 legally binds the CBI to create an electronic platform to be used by banks and non-bank credit institutions for inquiries concerning credit scoring and tax arrears, among other things.

The online platform will make it possible for lenders to receive information from authorities in related organizations.

Lawmakers also obliged all related bodies that banks and non-bank credit institutions potentially contact for credit assessment of customers to cooperate with them.

Fiscal Discipline

They also approved Article 19 of the development plan with 155 in favor, seven against and three abstentions from a total of 203 votes. The article prohibits "any usage of assets belonging to the central bank, banks and non-government credit institutions (with the exception of interest-free loans) in the annual spending budget in the upcoming five years of the development plan".

It also states that all bank accounts, including rial and foreign exchange accounts for ministries, institutions, companies and government organizations and universities, must strictly be opened through the Treasury with the CBI. This is reportedly to increase the speed and efficiency of government finances, revenue and expenditure.  

This, the legislation states, would increase the transparency of administrative accounts, create the possibility of online supervision and reduce the negative repercussions of the government's financial operations in the banking system.

All the aforementioned entities are, therefore, obligated by lawmakers to make their transactions only though accounts opened with the Central Bank of Iran. Any violations would be met with disciplinary action.

CBI's Governor Valiollah Seif has announced that the bank's grand plan to overhaul its financial oversight regime over the banking system will be unveiled soon.

According to Seif, the main thrust of the plan is the “new operational model of supervision over the banks”, which has been devised by employing the latest in international experience while completely localizing its components.

Iranian lenders, isolated by years of sanctions from international engagement, have been lagging behind regulatory and accounting standards, prompting the central bank and the government to launch a comprehensive reform plan to upgrade the key banking sector.

Insurance Privatization

Iranian lawmakers on Sunday required the government to forgo its shares in insurance companies, except for the Central Insurance of Iran–the industry's regulator–and Iran Insurance Company–the sole insurance firm totally owned by the state. The new mandate was ratified as part of the Sixth Plan.

The government is now obliged to divest its remaining shares in insurance firms by listing them in the capital market by the end of the plan’s second year (March 2019, according to the parliament's news service, ICANA.

The move is line with Article 44 of the Iranian Constitution, which obliged the government to transfer 80% shares of the companies to public ownership.

The article was passed in 2005, requiring the government to sell shares in downstream oil and gas industries, large mines, government banks, post and telecommunications, aviation and shipping organizations, insurance companies, power provision companies and all government companies, except those in which the government is entitled to a monopoly.

The government sold 80% of shares in Dana Insurance, Asia Insurance and Alborz Insurance based on the plan but kept the ownership of Iran Insurance Company. Many plans have been developed in recent years to gradually reduce the government’s share in insurance firms from 20% to 5%, though none of them was successful.

Abdolnasser Hemmati, CII’s head, has been reportedly holding intense talks with lawmakers to persuade them to vote in favor of the law. He was heading the industry when privatization took off.

“However, I personally believe that these companies are not [fully] private. I call them ‘quasi-governmental’ because their board members are still appointed by the government,” he said back in August.

The Insurance industry has managed to improve relations with lawmakers in recent months, raising hopes for implementing long-awaited plans.

Earlier in December, Mohmmad Reza Pourebrahimi, the head of Majlis Economic Commission, unveiled plans for forming a working group in the parliament specifically for addressing insurance industry’s issues.

Currently, taxes and duties are insurers’ main challenges. The parliament has shown interest in helping the insurers solve their problems.

The parliament also seeks to implement structural reforms in the industry, mainly to promote the role of insurance industry in the economy, especially in commercial categories.

Lawmakers on Saturday required CII to take measures for increasing the insurance penetration rate to 7% by the end of the sixth five-year development plan (2016-21).

Boosting the share of life insurance to at least 50% of the industry’s total premium income, revising regulations on insurance companies’ reserve calculations and investments, and introducing new insurance categories to cover risks in production and trade sectors are among other tasks of the CII in the next five year

[screwball]

https://financialtribune.com/articles/economy-business-and-markets/56207/majlis-passes-key-financial-transparency-measures

 

so they present a bill to delete one to the majlis, however this article says that they have passed key financial reforms but no mention of delete zeros? Hmmm....

well as I said we need to wait and see what the reforms will be and we won't until the new year..

[screwball]

1. Domestic Economy

Monday, December 26, 2016

Rolls-Royce Welcomes Iran’s Aircraft Selection

 

Rolls-Royce welcomes the decision by Iran Air to acquire 18 Airbus A330neo and 16 A350-1000 aircraft, which are powered exclusively by the Trent 7000 and Trent XWB engines respectively, the British company reported on its website.

In addition, Rolls-Royce looks forward to having the opportunity to provide engines for 27 A330ceo and 12 A380 aircraft that Iran Air is also to acquire, the report added.

Dominic Horwood, Rolls-Royce’s director for customers and services-civil aerospace, said, “We welcome this decision by Iran Air to select Rolls-Royce powered aircraft and, consistent with the improved regulatory environment that now exists, we look forward to supporting the modernization of commercial aviation in Iran.”

The Trent 7000, the exclusive power plant for the Airbus A330neo, is the seventh member of the Trent family that has become the engine of choice in the wide body market over the last 20 years. The Trent 7000 is scheduled to enter service in 2017.

The Trent XWB, the world’s most efficient large aero engine, is the fastest-selling wide-body engine with more than 1,500 engines sold to 41 customers.

The A350-1000 is powered by the higher thrust version of the engine, the Trent XWB-97.

 

[screwball]

News ID:174452

Publish Date: Sun, 25 Dec 2016 19:09:06 GMT

Service: Iran

 

 

Rial hits fresh record low

Iran's currency plummeted to new lows against the dollar on Sunday, continuing a six-month decline that has seen the rial lose some 19 percent of its value despite the lifting of sanctions.

The rial was trading at 41,300 to the dollar, down from 34,600 in June — widening the gap with the official government rate which remains fixed at 32,300, AFP reported.

Central Bank of Iran appears to have slowed its interventions without explanation. "Before, the central bank was injecting dollars into the market to maintain the level of the rial, but it has greatly reduced its injections in recent weeks," said a currency broker in Tehran, who asked not to be named.

The tightening of global sanctions in 2012 had a devastating impact on the rial which fell to 35,000 to the dollar from around 10,000 just two years earlier.

Experts say much of the current problem lies in the refusal of global banks to return to Iran despite the end of sanctions making it difficult to secure trade and investment deals. "The big international banks still refuse to work with Iran, which is preventing the repatriation of petrol money," said the broker.

The banks are reluctant to engage with Iran's opaque economy, and fear they could fall foul of remaining US sanctions that were not affected by the nuclear deal.

The worry now is the return of high inflation as importers are forced to pay more for consumer goods and industrial parts.

That would reverse one of the successes of President Hassan Rouhani's government, whose efforts to rebuild trade ties and improve economic management has seen inflation fall from more than 40 percent to 8.6 percent since he was elected in 2013.

[screwball]

 

Print Version |Send To Friend

 

Iran resumes carpet exports to US

Qazvin, Dec 25, IRNA - Head of Iran's National Carpet Center Hamid Karegar said on Sunday that Iran resumed carpet exports to the US in the wake of the Joint Comprehensive Plan of Action.

 

He made the remarks in a meeting with Gazvin Governor General Fereydoun Hemmati.

Karegar put the value of carpet exports to the US at 50 million dollars, which was zero last year.

Noting the carpet exports to China have also increased in recent years, Karegar said that over the past five year, carpet exports to the country surged to eight million dollars from 8000 dollars.

The official further noted that sanctions affected the carpet exports but in the wake of implementation of JCPOA, the exports made surge, he said.

Iran's carpet industry dates back to 3,000 years ago and currently, one million artists are engaged in the industry, Karegar said.
8072**1416

[screwball]

Print Version |Send To Friend

 

Dollar gain to rials does not mean devaluation of national currency

Tehran, Dec 24, IRNA – Deputy Minister of Economy and Finance for Banking, Insurance and State Companies Affairs Hossein Ghazavi said on Saturday that dollar gain to the rials does not mean devaluation of national currency.

 

Ghazavi said that dollar appreciated over the past weeks due to increase in its parity rate against all currencies.

'Devaluation of rial parity against dollar is also the impact of global growth in demand for dollar but does not mean devaluation of national currency.'

Over the past several weeks, dollar rate registered fluctuation with gain to the rials, Iranian national currency.

Currently, Central Bank of Iran (CBI) should maintain stability in the market and prevent fluctuation of the forex market and that intervention is not necessary to meet a specific parity rate, commented the official.

Qazavi, who was addressing the nationwide seminar of Tejarat Bank directors, also commented on drafting a joint bill by Ministry of Economy and Finance and the CBI on banks, saying that in case of approval of the bill, major changes will take place in method of calculating profit of the overdue facilities of banks.
1420**1416

[screwball]

Devaluation of rial parity against dollar is also the impact of global growth in demand for dollar but does not mean devaluation of national currency.'

so what's this saying...?

[jaman]

The recent surge in dollar’s exchange rate is mainly caused by growth in demand and shortage of the currency in the market. Demand will decrease after the turn of New Year,” IRNA quoted Samad Karimi as saying on Thursday

I love this part