Iranian Rial

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By: Maryam Azish

Bright future ahead of Tehran-Baku relations

News ID: 3929447 - Tue 14 March 2017 - 11:13

Politics

TEHRAN, Mar. 14 (MNA) – The Islamic Republic of Iran has always attached great importance to the expansion of relations with its neighbors, Azerbaijan Republic in particular.

As two developing Muslim countries, Iran and Azerbaijan Republic have always enjoyed numerous commonalities.

Iranian officials have repeatedly announced that there is no limit to broaden all-out economic cooperation with Baku.

In an indication of amending cordial relations, Azeri President Ilham Aliyev heading a high-ranking delegation arrived in Tehran on March 5 in his third visit to Iran since Hassan Rouhani was elected as Islamic Republic’s president in 2013.

During his day-long visit in Tehran, Aliyev held talks separate meetings with Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei and his Iranian counterpart and reviewed issues of mutual interests.

The Iranian and Azeri sides also inked two memoranda of understanding on cooperation in the presence of the two countries’ presidents which were mainly focused on bilateral relations in the areas of fighting against money laundering and fostering railroad cooperation.

Meanwhile, simultaneous with the trip of President Aliyev to Tehran, Astara-Astara railroad project were test-launched, a project which joined Astara in Iran to Astara in Azerbaijan.

 

Religious sentiments

In a meeting with Aliyev, Leader said that the interest and expediency of the Azeri government rests in sharing with people religious sentiments.

Religious commonalities bring more affinity between the two nations and officials, the Leader said, adding that the current level of economic cooperation is much lower than existing facilities and capabilities and should be increased ten-folds.

Hailing the stances adopted by Azerbaijan in dealing with Iran's nuclear dossier, the Leader said Azeri government has always backed Iran in political gatherings and their stances have brought us much closer.

The evil Zionist regime more than other enemies try to weaken brotherly relations between Iran and Azerbaijan and the two sides should be vigilant in protecting such sincere relations, the Leader said.

“If the Azeri government relies on its people, no one in the world can harm you and we also pray for success of the Azeri government and nation,” the Leader said.

Azeri president, for his part highlighted both sides' historical, cultural and religious commonalities, and said Iran and Azerbaijan have always backed each other and the visit of some one million Azeri people to Iran last year truly indicates the depth of affinity and cultural and religious commonalities between the two nations.

Relations between Iran and Azerbaijan is excellent, he said.

Current volume of trade exchanges between Iran and Azerbaijan is not satisfactory, he said, adding that contraction of joint rail tracks was a very significant job and the two sides are now working on South-North corridor, Aliyev said.

 

North-South Corridor

Speaking in a joint press conference attended by President Rouhani, Aliyev said the two countries had good economic progresses and in the past year trade volume between the two states increased more than 70 percents.

Aliyev said that two documents were signed between Iran and Azerbaijan Republic would pave the way for consolidation of relations, and appreciated Iran for starting investment in Azerbaijan Republic.

He said that the issue of north-south corridor is important, adding, 'The plan will have remarkable influence on the regional countries.'

'With regards to electricity and energy, the two countries have done good moves and today electricity lines between the two states have been connected and in relations with oil and gas also there are good possibilities and investment.

He added that Islamic solidarity meeting will be held next month in Baku and invited Iranian athletes to participate in the event.

Meanwhile, President Rouhani for his part described Tehran-Baku relations as brotherly and strategic, saying the two countries enjoy close viewpoints about the regional questions.

During the past three years, Iran and Azerbaijan have witnessed considerable growth in their bilateral ties, President Rouhani said.

Growth in Tehran-Baku ties is “politically, economically, culturally, regionally and internationally” important, President Rouhani said.

The volume of the trade exchange in the past ten months between Iran and Azerbaijan indicates that the two are moving towards further efforts in developing bilateral relations, Rouhani underlined.

 

Rasht-Astara Rail Track

In a meeting with Azeri high-ranking officials led by Aliyev, President Rouhani said that Iran attaches importance to the expansion of relations with its neighbors and there is no limit to broaden all-out economic cooperation with Baku.

Connecting the two countries rail tracks prepare grounds for the expansion of economic cooperation through transit of goods in the region, President Rouhani said while expressing the hope that Rasht-Astara rail track to be connected to enable Azerbaijan to have access to Persian Gulf region.

He added grounds for the expansion of mutual cooperation in industry, agriculture, scientific cooperation, universities and tourism are well-prepared and ease of commutes between the two sides' nationals help deepen such cooperation.

Implementation of banking cooperation can help broaden banking and economic cooperation between the two countries, Rouhani said.

Free trade economic zones can play vital role in broadening economic cooperation between border regions and Iran welcomes investment of Azerbaijan in tourism sector, President Rouhani said.

Determining Caspian Sea Legal Regime requires collective consensus of all littoral states and Tehran and Baku can play significant role to this end, he said.

 

Trade Exchanges

In Feb 25, Minister of Economy of Azerbaijan Republic Shahin Mustafayev said that in year 2016 trade exchanges between the two countries increased almost 70 percent.

More than 530 Iranian companies are active in different fields of economy in Azerbaijan Republic, he announced, adding, 'Almost 2.7 billion dollars have been invested by Iran in Azerbaijan Republic.'

He called Iran as important commercial partner for his country and said that common activities of the two neighboring countries in direction of execution of a number of economic projects successful, and added that the first stage of completion of international corridor of north-south has ended and in this framework a 8.3 kilometers railway in Azerbaijan Republic and a rail bridge in common border of the two states have been constructed and works to build 1.7 kilometers railway and a cargo terminal in Iran territory is continuing, Mustafayev said.

He said that last year a 330-kilovolt electricity transfer line were sat up and a joint venture auto maker company founded in Azerbaijan Republic as well as a joint venture pharmaceutics plant.

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Few months old but interesting...

The Money and Capital Markets Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture–known as the country's private-sector Parliament–has published a report on Iran's foreign exchange policies and the effects of those decisions on the business climate. 

The report also outlines the requirements for unifying foreign exchange rates, explicating the optimal way a single exchange rate regime can be adopted, ICCIMA's website reported.  

Deciding the best course for the foreign exchange market has always been one of the biggest concerns of economic policymakers in every country and Iran is no exception. The issue has gained renewed attention in the wake of currency market fluctuations in the final months of 2016, which saw rial sink to record lows against the greenback. 

In its findings, the Money and Capital Markets Commission has floated the idea that a single exchange rate system should be both "managed" and "floating". It also outlines seven factors needed for the single exchange rate regime to move forward.  

Why Unification? 

According to the report, there are many reasons for following a multiple exchange rate regime. 

One main reason could be that using this system helps cover up the negative consequences of ineffective monetary policies.  This includes, for instance, countering runaway domestic inflation through cheap imports, using a lower and subsidized exchange rate. 

The report quotes Dr. Mohammad Jafar Mojarrad, a former deputy governor of Central Bank of Iran, as saying that a multiple exchange rate policy is necessitated by domestic or foreign economic shocks, but is also carried out to support domestic industries and direct resources toward specific economic enterprises.

Mojarrad, however, noted that empirical research has shown that the benign effect of multiple exchange rates over the market lasts only for six to nine months and after that, only their adverse effects are felt in the economy. 

This, he maintains, is mainly due to direct and indirect restrictions on foreign currency allocation and quotas on imports.

"The experience of other countries on the matter also reflects the fact that the multiple exchange rate policy has not been an efficient and sustainable system but it has been used as a stopgap, aiming to eliminate imbalance of payments and also in high-inflation situations," he said.    

Exchange rate regimes are mostly among three groups, namely fixed, multiple and floating. 

Iran had been used a "managed floating" exchange regime twice in the past. The first experience dates back to 1993 when it did not last more than a few months due to economic turmoil and the exchange rate regime went back to multiple rates. 

The second time though, following the experience gained from previous setbacks and reforming forex and trade policies in order to facilitate and deregulate foreign trade, foreign exchange rate unification was successfully implemented and a "managed floating system" was announced in 2002. 

Unfortunately, it only lasted until 2010 when the next administration failed to observe financial and budgetary discipline, and overvalued the rial. 

The Central Bank of Iran's authority as the main money and exchange rate policymaker was stripped and the heavy international sanctions diverted the exchange rate regime from its original path. Eventually, after some severe fluctuations, Iran's exchange rate regime went back to multiple exchange rates.     

Prerequisites 

Currently, Iran has two exchange rates, with market rates varying based on where you are shopping. The official CBI rate is fixed at 32,367 rials and the free market rate is over 38,510 rials, which shows a difference of 18%. 

Now the question is, "What requirements can guarantee the successful implementation of a unified single exchange rate system, with managed float?" 

According to the report, six factors should be observed:

1. Access to sufficient financial resources

2. Curbing the inflation rate

3. Effective management of currency market fluctuations

4. Fiscal discipline of the government and deficit reduction

5. Establishing correspondent banking relations

6. Forming an organized foreign exchange market

The results of global research and studies show that adopting a single exchange rate system, targeting inflation and implementing complementary policies could work since it is reasonable in many ways and make the decision feasible. 

Although using a single exchange rate regime is not probably practical at all times, a managed floating rate allows the economy to achieve its growth targets and control inflation. There is ample evidence that show a multiple exchange rate system or a fixed exchange rate only lead to corruption. 

Non-optimal allocation of financial resources undermines the competitiveness of exports and increases imports, which eventually create many problems for economy, such as severe fluctuations in the currency market.

[Freedomwish]

18 hours ago, pokerplayer said:

6 more days till the 20th....... don't know about all but I'm stoked 

pp

Well, if this Rial thing does pop before the Dinar, you already know what I'll be drinking......I just don't know WHERE I'll be drinking, either up there by you in Canada or just get ready to cash in and party out in Dubai   

Edited March 15, 2017 by Freedomwish

[WheresmyRV?]

I have a question about travelling to Dubai, am I going to need any type of vaccines to travel there?

[tigergorzow]

9 minutes ago, WheresmyRV? said:

I have a question about travelling to Dubai, am I going to need any type of vaccines to travel there?

WheresmyRV,  Not needed and you can get a Visa Card from inside the Airport which will allow you to travel showing your Multi-Entry Visa Card.  I traveled via Dubai from Afghanistan often and spent some downtime their as well....

Edited March 15, 2017 by tigergorzow

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50 minutes ago, tigergorzow said:

WheresmyRV,  Not needed and you can get a Visa Card from inside the Airport which will allow you to travel showing your Multi-Entry Visa Card.  I traveled via Dubai from Afghanistan often and spent some downtime their as well....

sounds like a plan...soon

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2 hours ago, Freedomwish said:

Well, if this Rial thing does pop before the Dinar, you already know what I'll be drinking......I just don't know WHERE I'll be drinking, either up there by you in Canada or just get ready to cash in and party out in Dubai   

anwhere we can cash in dubai....sounds good....

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The Foreign Ministry and Majlis Economic Commission agreed to form a joint committee to monitor the enforcement of the sixth five-year development plan (2017-22) and a national economic plan aimed at boosting self-sufficiency, the top diplomat said.

Asked about his Tuesday meeting with the parliamentary commission, Foreign Minister Mohammad Javad Zarif said, “The meeting provided a good opportunity for seeking the expert views of the commission’s members and laying the basis for improved cooperation,” IRNA reported. “Some lawmakers in the meeting proposed that the Foreign Ministry and the commission set up a joint committee to pursue [the government’s] commitments under the development plan and the Foreign Ministry’s responsibilities in the field of Resistance Economy.”

Zarif was referring to a set of principles that constitute the economic concept outlined by the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei to wean the country off oil revenues by bolstering domestic production and productivity. Zarif said his deputies briefed the lawmakers on his ministry’s efforts to promote foreign trade.

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fter the implementation of the Joint Comprehensive Plan of Action, the Export Development Bank of Iran secured correspondent relations with 119 foreign banks, said the bank’s CEO.

“Last year, we opened bank accounts in 30 foreign banks and made money transfer, opening lines of credit and issuing guarantees possible through 82 correspondent banks,” Ali Salehabadi was also quoted as saying by IRNA.

Iran’s nuclear deal–known by its initials JCPOA–took effect on January 16, 2016, and terminated nuclear-related sanctions against Iran in return for time-bound curbs on its nuclear program.

Salehabadi noted that they reached agreements with the ECO Trade and Development Bank of Turkey and the Korea Eximbank (Export-Import Bank of Korea) to receive a credit line for funding the import of commodities, equipment and machinery.

“EDBI utilizes monetary tools and offers a wide range of services to support non-oil exports in line with the bank’s responsibility,” he added.

The CEO of EDBI said export financing falls in three groups: Pre-Shipment Export Finance, Post-Shipment Export Finance and Buyer’s Credit. “Financing Iranian offshore investments [joint ventures] is another form of funding,” he added.

Salehabadi concluded that EDBI is not only acting as the consultant of exporters as the Eximbank of Iran, but has prioritized the funding of different sectors.  

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hmmm.have to be international for this!

ran’s top cargo shipping company has held meetings in London to discuss a possible listing on London Stock Exchange, but has so far been thwarted by US sanctions that still scare banks off Iranian business, reads an exclusive Reuters report, citing four Iranian and two western sources.

Islamic Republic of Iran Shipping Lines was removed from international sanctions blacklists last year and, after years of isolation, aims to raise funds to modernize its fleet. It has already placed an order for new ships estimated to be worth $626 million.

A flotation on LSE would make it the first Iranian company to list on Britain’s main exchange since the Islamic Revolution in 1979.

But the difficulty in achieving such a landmark shows how far Tehran still remains from its goal of integrating fully with the global economic mainstream, since its 2015 deal with world powers to lift international sanctions in return for curbs on its nuclear program.

President Hassan Rouhani, who faces a campaign for reelection in May, has struggled so far to demonstrate to voters real economic benefits from the deal. He won office in a landslide in 2013 on a promise to reduce Iran’s isolation and the nuclear deal is his crowning achievement.

Most international sanctions on Iran were lifted last year as a result of the nuclear deal. But the United States still has separate sanctions in place over Iran’s missile program and the administration of new President Donald Trump has signaled it would take a tough line.

The four Iranian officials and two western financial sources told Reuters the Iranian company had expressed interest in an LSE listing. Two of the Iranian sources, both senior officials in Tehran, said meetings had already been held with LSE in London about a possible float for IRISL.

In an email to Reuters, a source at IRISL denied any measures had been taken for a possible listing on London Stock Exchange. The LSE declined to comment.

All six western and Iranian sources spoke on condition of anonymity to discuss an initiative that has not officially been made public.

  US Sanctions

Experts on sanctions say any Iranian IPO in London would run up against the impact of the remaining US measures, which have deterred British-based banks from clearing payments or facilitating transactions for Iranian companies.

Even the UK subsidiaries of Iranian banks with British licenses have yet to offer payment clearing services in sterling.

“In the current climate, I believe it is wholly unrealistic for IRISL to expect to pull off a listing in London,” said Nigel Kushner, a leading London-based sanctions lawyer.

“In circumstances where no UK clearing bank is willing to become involved and when Iranian banks that may legitimately trade in London are still not able to clear their transactions in London, how on earth is a listing going to happen?”

The sources did not say how much capital IRISL was seeking to raise in a potential initial public offering.

During the height of sanctions, the United States and European Union blacklisted the shipping firm, accusing it of involvement in nuclear proliferation efforts, which it denied. A European Union court ruled in 2015 that the EU had not given valid reasons for the allegations against IRISL.

IRISL’s ambitions to become a big global cargo carrier are constrained by the age of its fleet. It operates 26 ships, worth just $166 million, according to ship valuation company VesselsValue. IRISL placed an order in December for 10 ships with South Korean shipbuilder Hyundai Heavy Industries Co Ltd. Those ships would be worth $626 million, according to VesselsValue.

If it is still too difficult to hold an IPO in London, Iranian companies, including from the telecommunications sector, could turn instead to Italy’s stock exchange for a potential listing, Iranian sources said.

The Italian stock exchange, Milan’s Borsa Italiana, is part of LSE Group. Borsa Italiana declined to comment.

For Iran, pressures to show more progress are mounting ahead of the country’s presidential election in May. Hardline opponents say Rouhani has failed to get the economic windfall from his nuclear deal and some voters are losing patience.

“Despite Rouhani’s and his government’s efforts, almost all banking transactions are blocked,” said one senior Iranian banking official.

“This will impact the upcoming election and as you see hardliners have been using it against Rouhani in the past few weeks. Without foreign investment and the financial backing of major international banks, Iran’s economy cannot recover.”

Earlier, IRISL Chairman Mohammad Saeednejad said that the container shipper expects to have recouped by the middle of next year the business lost while Iran was subject to nuclear sanctions.

“Step by step, the problems have been resolved, removing many restrictions and limitations,” since the sanctions were lifted, he told Reuters in an interview at a shipping conference in Copenhagen, Denmark, in October.

“I think at the maximum in mid-2017, the whole thing would be in the normal manner (of) things,” he added.

With almost 90% of Iran’s foreign trade taking place through its territorial waters, Iran’s ports (of which there are 11 primary ones) are especially important. IRISL is the primary domestic player in this area.

Following the adoption of JCPOA, IRISL has announced its intention to become one of the world’s top 10 shipping lines by 2020.

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

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Economy, Business And Markets

Wednesday, March 15, 2017

Banker Expects Further Interest Rate Cuts

 

Interest rates in the Iranian banking system are expected to drop in the next Iranian year (starting March 21), said the chief executive of Parsian Bank.

“Higher government revenues and forex market stability are prerequisites for lowering the rates,” Kourosh Parvizian was also quoted as saying by Tehran Chamber of Commerce, Industries and Mines website on Tuesday.

“We are hopeful about further rate cuts in the next fiscal year, or else everybody is expected to help keep the rates around 15%, as set by the Money and Credit Council.”

Parvizian noted that banks’ lending rates would also be lowered after deposit rates come down.

Back in June, MCC allowed the banking sector to offer approximately 15% interest on term deposits, lowering the rate by 3%. Banks’ were also asked to charge borrowers approximately 18%, though bank loans are reportedly offered at higher rates.

However, the Central Bank of Iran has announced that it seeks single digit interest rates, approximately 2-3% higher than the inflation rate that is currently 8.7%.

Parvizian believes that there must be at least a 5% gap between the deposit and lending rates in the banking system, which is 3% at present.

“The banking system is not being supported at all. The sector is facing restrictions that are beyond the regulations,” he said.

The Parsian Bank CEO said the banking sector accounts for 90% of financing in Iran, which is a heavy burden.

“Banks need support for getting rid of non-performing assets, while borrowers need a better market to meet their commitments and regulations need to be improved,” he said, noting that lenders would be able to lower interest rates under these conditions.

“Normalization of international banking relations and attraction of foreign resources would also help lower lending rates,” he said.

Parvizian also called for more focus on capital markets for meeting the businesses’ need for finance.

 

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Iran Chamber of Commerce, Industries, Mines and Agriculture approved the outlines of its budget for the new Iranian year (March 2017-18) on Monday. According to the chamber’s treasurer, Hossein Pourmoazzen, ICCIMA’s budget totals 2.3 trillion rials ($61.18 million), about 17% bigger than the current year’s budget. “Headlines of the approved budget include human resources, capitals and assets, current expenditure and structural reforms. The private sector parliament [a reference to ICCIMA] has allocated 23% of the budget to current expenditures and the rest to investments and provincial budgets,” Otaghiranonline.ir quoted him as saying. In the human resources section, about 10% of the ICCIMA’s workforce will be downsized by September 22, 2017. About 200 billion rials ($5.31 million) will be earmarked for national groups and 70 billion rials ($1.86 million) will be allocated to provincial groups. “The chamber’s research budget comprises 10% of the total budget,” said the deputy head of Iran chamber, Pedram Soltani.

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Iran Deposit Guarantee Fund complies with international standards and has managed to increase its assets, announced the fund's director.

"The IDGF was founded in 2013 on the basis of an article of the Fifth Five-Year Development Plan. Its statute was drafted and registered, and a directive was issued for its activities, which was approved and notified by the Cabinet," Mohammad Talebi also said in a talk with Fars News Agency.

The fund is a non-government public entity, the assets of which are generated through the membership fees of banks and credit institutions, "plus 0.25% of bank deposits". It has been formed with the main goal of guaranteeing that deposits in banks and credit institutions will be repaid in case of a banking crisis.

According to Talebi, IDGF will guarantee the deposits of each customer in every bank or credit institution  for up to 1 billion rials ($26,700) and should the bank or credit institution find itself bankrupt as per the regulations, the fund will reimburse depositors  up to that ceiling.

Its director noted that its board of trustees consists of Central Bank of Iran governor as the chairman of the board, with the Minister of Economic Affairs and Finance, the head of Planning and Budget Organization and the supervisory chief of the central bank, with "two others, including a private bank CEO and a public-sector bank CEO," completing the list.

"The board of directors is independent of its director," he said, noting that the board itself is formed by the board of trustees and with the direct approval of the CBI governor.

Talebi explained that banks and credit institutions are obligated to put 0.25% of their total deposits of under 1 billion rials with IDGF as a trust, which is equivalent to 2.5 million rials ($66.4).

According to the fund regulations, he added that if the fund's assets are not sufficient to cover the losses, it is allowed to borrow from the central bank after getting the formal approval of the Cabinet.

"As per the law, all banks and credit institutions are obligated to become a member of the deposit guarantee fund," he said.

"This is while a total of 38 banks, credit institutions and branches of foreign banks in Iran are currently a member of the fund."

No Guarantee for the Unauthorized  

Commenting on unauthorized banks and credit institutions, Talebi said their activities are outside the bounds of law and therefore no guarantees will be extended to them.

The director of IDGF noted that established norms across the world require 1.5% to 2% of the assets of banks to be allocated to insurance funds or deposit guarantees. With a two-year history of official activity in the Iranian banking system, IDGF has "received membership fees from banks and credit institutions, amassing significant assets in line with global levels".

He added that the fund had a 25–30% progress in attracting assets, which is a good sign.

Talebi also responded to reports claiming that a number of Iranian banks are bankrupt, saying he does not agree with them.

"It is possible that banks encounter hurdles and face problems regarding profitability and liquidity for a year or two and not pay dividends to their shareholders," he said, adding that this does not imply that they are bankrupt.

Recently, Vice Governor of CBI Akbar Komijani downplayed the woes of Iranian banking system, saying he does "not agree with the use of the term bankruptcy for banks" even though "a number of banks are facing problems such as shortage of capital and non-performing loans higher than international norms".

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The parliament reduced the budget for the new Iranian year that starts on March 21 by 2.5 trillion rials ($67.6 million) as per the changes made by the Guardians Council—a state body charged with reviewing the bills passed by the parliament to ensure their compliance with Islamic and constitutional precepts, IRNA reported. The lawmakers had finalized an 11.5-quadrillion-rial ($306.6 billion) budget earlier this month. The budget included 3.88 quadrillion rials ($106 billion) earmarked as “general revenues”, in addition to a whopping 8 quadrillion rials ($213 billion) to fund state companies, institutions and banks. President Hassan Rouhani submitted the budget bill to the parliament early December.

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Blanket judgements not genuine criticism of economic achievement

News ID: 3932677 - Tue 14 March 2017 - 20:13

Economy

TEHRAN, Mar. 14 (MNA) – Mohammad Baqir Nowbakht has told a press conference IRIB’s measure to resort to street-level citizens for an economic assessment would be misleading the nation.

Mr. Nowbakht was speaking in his last press conference in the fiscal year ending March 21, 2017. He provided the press with the government performance through figures which he believed mattered in concrete speech. “Since March 2016, over 24,000 small and medium-sized economic firms have received $4.5bn as asset in circulation; by March 11, government invested $6.4bn on construction projects; it also allocated $2.3bn for the construction center to support projects to the end of the term in August 2017,” Nowbakht detailed.

“From fall of 2013 to fall of 2016, more than 2 million people were added to the number of active labor force seeking jobs; in fall of 2013, the number of employed was 20.9 million, which was 22.4 million three years later, which shows that within 3 years, roughly 1.5 million people found jobs,” he told the press.

Nowbakht received criticism against the government with optimism; however, he denounced the ‘blanket criticism,’ which set aside government official figures, while itself provided little rationale that the case would be otherwise; “the current figures of economic growth is the product of complex interaction of other figures; merely rejecting such figures would achieve nothing in contributing the current economic conditions,” he lamented.

On Rouhani’s letter to Kuwaiti emir, Nowbakht declined to comment further, claiming that he was not informed about the letter content; “Kuwaiti envoy, in his last visit to Tehran, conveyed a general message by the Persian Gulf countries including possibly Saudi Arabia, that they would welcome peace and security in the region, which President Rouhani’s letter had likely addressed in due course; the message suggested Arab state’s official requests for a general détente with Iran; both sides emphasized upon a common resolve to attain the stability much needed in the region,” he said.

Nowbakht’s cutting edge of criticism hit what he believed was a ‘plot cabal’ in the IRIB to ‘destroy what the government has achieved in economic terms;’ “this is to mislead the nation; to ask ordinary citizens economic complex questions and then to draw conclusions based on their responses that the government failed to achieve economic success; we expect to see that IRIB, as it is called ‘national’, to address the issues through documentation and a genuine approach, setting aside efforts to distort the facts,” he concluded.

 

SH/3932118

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Over 11 MoUs to be signed on Rouhani’s visit to Moscow

News ID: 3932224 - Tue 14 March 2017 - 11:46

Politics

MOSCOW, Mar. 14 (MNA) – Iranian minister who is in Moscow to chair Iran-Russia’s Joint Commission for Cooperation said more than 11 documents are expected to be signed between the two countries during Pres. Rouhani’s upcoming visit to Russia.

ICT Minister Mahmoud Vaezi made the remark during the talks of the Iranian delegation with the Russian side on Monday in Moscow, adding “we had good talks on oil and gas cooperation and it was decided that negotiations would continue to finalize the contracts in the remaining time before President Rouhani’s visit to Moscow in late March.”

Vaezi maintained that in addition to the documents currently being prepared to be signed during Rouhani’s visit, the two sides were hoping to reach an agreement on a roadmap for medium or long-term cooperation.

According to Vaezi, the oil-gas contract currently being negotiated between the sides includes a daily export of 100,000 barrels of Iranian oil to Russia.

“Although the value of trade ties between Tehran and Moscow had a 70-80 per cent increase in 2016 as compared to 2015, the capacity for cooperation between the two sides is much higher than this,” he said. “Luckily, we have made good progress on customs relations, such as reaching an agreement on creating a 'green customs corridor' to facilitate the cargo transportation.”

Vaezi also called for the improvement of banking ties, implementation of joint projects in Iran such as railway electrification from Garmsar to Incheh Borun, as well as closer economic cooperation between Tehran and Eurasian Union.

On Monday, Vaezi held separate talks with Russian Energy Minister Alexander Novak who heads Iran-Russia’s Joint Commission for Cooperation on the Russian side, and Russia’s first Deputy Prime Minister Igor Shuvalov. 

In addition to trade cooperation, Iran and Russia hold close ties on various regional activities such as the fight against terrorism and oil policies. 

MS/IRN82463674

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EEU, Iran expected to ink FTA by March-end: Novak

1. Economy

March 14, 2017

 

TEHRAN- Iran and the Eurasian Economic Union (EEU) are expected to sign a free trade agreement (FTA) by the end of this month, Russian Energy Minister Alexander Novak announced.

Making the remarks before his Monday meeting with Iranian Communications and Information Technology Minister Mahmoud Vaezi in Moscow, Novak expressed hope that the agreement will be ready when Iranian President Hassan Rouhani makes his planned visit to Russia in late March, according to worldbulletin.net.

A memorandum of understanding to set up a free trade area between member countries and Iran was signed during the EEU summit in Bishkek in Kyrgyzstan on March 7. 

Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia are members of the EEU which aims for common policies in economy and energy markets, and partnership in key infrastructure projects.

Meanwhile, Vaezi said that negotiations have been conducted to provide the prerequisites for President Rouhani’s visit and signing the MOU, hoping that the talks in Moscow will have a positive impact on the expansion of bilateral ties, IRNA reported on Tuesday.

He added that issues are discussed to make the agreement on exports of 100,000 barrels per day of Iranian oil to Russia operational.

HJ/MA/MG

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Russia, Iran to discuss $10b agreements during Rouhani’s visit

Russia and Iran will consider realization of joint projects in the industry sector for a total of $10 billion during a forthcoming visit by President Hassan Rouhani to Moscow, Russian Energy Minister Alexander Novak said.

He made the remarks following a meeting with Iranian Communications and Information Technology Minister Mahmoud Vaezi on Monday. 

"We discussed the new documents which are expected to be prepared for signing during the visit of Iranian President Hassan Rouhani to Moscow, and we agreed that approximately more than 10 such contracts will be prepared," RIA Novosti quoted Novak as saying.

Great prospects exist in the field of industry, since a five-year 'roadmap' for cooperation was signed, and now Russian companies and industrial enterprises cooperate with Iranian companies, according to the energy minister.

"Wagons are already delivered, we are talking about the supply of Sukhoi Superjet aircraft and other areas of cooperation," Novak stated.

He further stressed that it is important to create financial and economic conditions in the banking sector for implementing and developing cooperation between the two countries.

Russian trade representative in Iran Andrei Lugansky also said that Moscow may conclude agreements on deliveries of engineering industry goods to Iran and imports of food products from Iran during Rouhani’s visit to Russia in March, Sputnik reported.

“This concerns foreign trade activities – machine building products to Iran and an increase in food products to Russia,” Lugansky said.

Lugansky added that the creation of the free trade zone between the Eurasian Economic Union (EAEU) and Iran will also be discussed during the president’s visit.

“The matter is currently complicated by the Iranian side that does not want to agree on the list [of goods], as our product range is wider, while theirs is narrower,” Lugansky stressed.

According to Lugansky, Iran must recognize the mutual interest of both countries within the framework of the free trade agreement. He referred to Iran’s intention to begin exports of fruits and vegetables to Russia, which is a point of concern for Russia, as the duty-free importation of such products could create competition with local goods. Similarly, Iran fears that the import of a number of machine building products could provoke competition with more expensive local products.

Talks on the creation of the free trade zone between EAEU and Iran were held between Moscow and Tehran in February. After the negotiations, members of the EAEU prime ministerial council signed a directive ordering preparations for a temporary agreement on the establishment of the EAEU-Iran free trade zone.

The EAEU is a regional political and economic bloc that aims to optimize the flow of goods and services between its members. Its current member states are Russia, Kyrgyzstan, Armenia, Belarus, and Kazakhstan.

Russian Foreign Minister Sergei Lavrov said in October 2016 that over the last two and a half years the trade between Russia and Iran increased more than twice.

 

 

 

[screwball]

i find interesting that we are fastly approaching march 21st and no mention of single unified currency by president or cbi governor...no mention of dealy....will this ship dock or set sale for new destination????? we know financial reporting systems have to be reset by march 21, banks where not allowed to lend money prior to march 21st....debt whiped clean by CBI getting ready for the reset...will it include a jump to the euro and removal of zeros??? shits getting exciting....might have to visit dubai Grosvenor Hotel again and refresh my soon to be rich mind!

[sandfly]

I don't think, they will post anything about it, it will just pop out 

[Freedomwish]

1 hour ago, screwball said:

i find interesting that we are fastly approaching march 21st and no mention of single unified currency by president or cbi governor...no mention of dealy....will this ship dock or set sale for new destination????? we know financial reporting systems have to be reset by march 21, banks where not allowed to lend money prior to march 21st....debt whiped clean by CBI getting ready for the reset...will it include a jump to the euro and removal of zeros??? shits getting exciting....might have to visit dubai Grosvenor Hotel again and refresh my soon to be rich mind!

It has been rather interesting and quiet, like being really sneaky about it LOL - I say it'll jump out into the Euro but still not sure about the total removal of the zeros...I'm sensing that it'll come out a few cents, it's hard to accept still it's planned hedging to unify the exchange rate at 1 to 1.  But oh man, could you only imagine if this would happen as such?!  Feels so darn unreal!!  Hey Screwball, I'm willing to meet ya out there in Dubai!! Who else would be down?!! 

43 minutes ago, sandfly said:

I don't think, they will post anything about it, it will just pop out 

That's definitely a possibility brother Sandfly, keeping the faith all the way through!! 

[screwball]

They did say late last year that the move would be made quietly and in their exact words " without the fanfare"

[screwball]

Love to be able to find out what this says...

Forex Rate On Iran Price Meter Forex

huamao.com.au › blog-trade › forex-rate...

The governor of the Central Bank of Iran (CBI) says a single forex system will ... a single forex rate system as early as next fiscal year, which starts on March 21, ... and closing hours of Forex markets. markets, in the orderof their opening times, ...

[screwball]

Refresh title of this article actually read " single rate in new budget"

Iran’s national budget for 2017-18 will be prepared based on unified exchange rates, Masoud Nili, President Hassan Rouhani’s economic advisor said on Tuesday.

“Plans to unify foreign exchange rates are moving ahead. A flexible forex regime is needed, which hopefully will be implemented by the end of the current fiscal year in March 2017,” he was quoted as saying by the khabaronline.ir website, during a meeting with the presiding board of Tehran Chamber of Commerce, Industries and Mines and Agriculture.

Unification of forex rates is considered a crucial requirement for the reintegration of Iran into the global banking system and payment networks. Iran was forced to revert to the controversial double exchange rate regime after nuclear-related sanctions unleashed turmoil in the forex market in 2011-12 in which the national currency lost almost 70% of its value within days.

The Central Bank of Iran has already started plans for launching a single foreign exchange rate regime.

The CBI also has an eye on reducing fluctuations in the foreign exchange market. It has also been working to bring the two rates closer, mainly through lifting the official exchange rates in the past few months.

In a related move, the CBI allowed banks to trade foreign currencies at the market rates. Lenders were also given the permission to attract deposits in hard currency.

Nili noted that Iran experienced 4.4% economic growth during the first quarter of the fiscal year (ending in June 20).

“Stagnation is no longer the main problem of the economy,” he said. “Currently we need to focus on accelerating economic growth as the main challenge confronting the economy.”

“By recognizing growth as the main issue in Iran’s economy, we will direct the government toward taking fundamental measures,” he added. Iran's economy was grappling with chronic negative growth rates when President Hassan Rouhani took office in mid-2013.

Edited March 15, 2017 by screwball

[screwball]

Iran president orders single forex, lower lending rates 

Sat Feb 13, 2016 10:16AM

1. Home
2. Iran
3. Economy

Iranian President Hassan Rouhani gestures before starting to address a banking forum in Tehran on February 13, 2016. (president.ir)

Iran must unify multi-tiered foreign exchange rate and cut lending interest rates as part of post-sanctions plan to prop up the economy, President Hassan Rouhani says.

“Forex rate must be unified next [calendar] year (starting March 21) so that stability in the market will be bolstered and corruption will be stopped,” Rouhani told a banking forum on Saturday.

He stressed the necessity of cutting lending interest rates, saying: “After the administration curbs inflation and [cuts it to] a single-digit rate, high banking interest rate would be incorrect and will harm the economy.”

Rouhani said Iranian banks have to step up their efforts in favor of national economy now that international sanctions have been lifted on Iran. Interest rates offered by Iranian banks are set at 20% for long-term deposits and at lower floating rates for short-term accounts.

Iran’s national currency, the rial, has been traditionally traded at two rates one being traded by CBI and the other one set by money changers.

On Saturday, the US dollar traded for IRR 30,180 at official rate and for IRR 35,060 on open market.

The rial depreciated 60% against the US dollar since the end of 2011 when the US and its allies started imposing anti-Iran sanctions.

Governor of the Central Bank of Iran (CBI) Valiollah Seif said last month that $28 billion of Iran’s unfrozen assets would go to the central bank and $4 billion will be transferred to the state treasury as the share of the government.

Rouhani also said that his administration’s “financial and money discipline” has contributed to curbing the country’s runaway inflation rate.

 

 

 

 

 

 

 

 

 

 

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