Iranian Rial

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Ukrainian former president, Viktor Yushchenko, announced that his country intends to expand economic ties with Iran, for which a Ukrainian delegation is negotiating establishment of financial ties with Iranian banks.

In a meeting with the head of Iran Chamber of Commerce, Industries, Mines and Agriculture, Gholamhossein Shafei, in Tehran on Sunday, Yushchenko added that the National Bank of Ukraine proposed the idea of opening an Iranian bank in the country and is assessing which bank is ready for the process in this trip, ICCIMA’s official website reported.

The Ukrainian official noted that licenses for opening an Iranian bank in Ukraine have been issued and are ready to be granted.

“Hurdles on the way will be resolved step by step if both countries rectify their communications and information systems, and provide comprehensive economic information,” he added.

Back in November, representatives of the National Bank of Ukraine met with officials from the Central Bank of Iran to discuss all the technical issues for solving any banking problems. At the meeting, both sides agreed to establish direct correspondent relations between Ukrainian and Iranian banks.

Ukrainian Ambassador to Iran Serhii Burdyliak last May announced that Ukrainian bankers are mulling ways of undertaking money transfer with Iran such as currency swap.

The president of ICCIMA mentioned the multiple trips of governmental and private economic delegations to their respective countries, which he believes could be a promising start to expand relations.

Shafei announced that an economic delegation from ICCIMA, backed by the Iranian government, will visit Ukraine in October.

“After nuclear sanctions on Iran were lifted, the situation entirely changed and the possibility of resuming previous relations is on the table again. Therefore, in light of current potentials, ICCIMA is taking effective steps to make it happen,” he said.

The Ukrainian former president noted that after the disputes between his country and Russia, their ties in a number of sectors such as energy were cut off, therefore Iran could enter this market and expand its activities.

Shafei said Iran is seeking $200 billion worth of investment in oil and gas sectors so everything is ready to develop mutual ties in this sector.

Yushchenko also mentioned the great agricultural trade potential between the two countries, noting that Ukraine is willing to implement joint agricultural projects based on up-to-date technologies with Iran.

Ukraine’s Deputy Agriculture Minister Olga Trofimtseva announced in March that her country and Iran have all the prerequisites to reach $1 billion in bilateral agricultural trade within the next two or three years.

Following Yushchenko’s statement, ICCIMA’s president said cooperation in agriculture sector is one of Iran’s primary goals in its relations with Ukraine.

In May, Burdyliak told Financial Tribune that trade between the two countries stood at $1.5 billion in 2016, up 35% compared with the previous year. Ukraine’s agricultural exports to Iran made up close to $800 million of the figure.

In 2016, Iran was ranked sixth among main importers of Ukraine’s food and agricultural products. India was the largest importer of Ukraine’s farm products, followed by Egypt and China.

Shafei also believes that Iran and Ukraine could boost their cooperation in aviation, transportation, steel, electronic and energy industries.

Seeking to expand bilateral trades, Ukraine and Iran agreed in April to launch a test train to transport agricultural products.

According to Ukraine’s Minister of Infrastructure Volodymyr Omelian, the test train may be launched in the summer of 2017.

At the end of the meeting, Yushchenko suggested that the Iranian delegation’s trip to Ukraine could be held in tandem with Iran’s specialized exhibition of export commodities in Ukraine’s capital, Kiev, from September 12 to 15.

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Lawmakers on Tuesday had a closed-door meeting with the Governor of Central Bank of Iran Valiollah Seif, as the regulator’s actions had become a talking point in the controversy surrounding unlicensed credit and financial institutions. “During the meeting with Valiollah Seif and his colleagues, Massoud Pezeshkian , deputy Majlis speaker who has a mandate from Majlis to probe into unlicensed credit institutions, presented a report,” Majlis Speaker Ali Larijani said after the meeting. According to Larijani, MPs gave CBI a week to solve depositors’ problem with struggling credit institutions, including Caspian, and provide a report to the parliament. Last week, Seif and Economy Minister Ali Tayyebnia held a meeting with Majlis Presiding Board members, in which it was decided that the government should reimburse a group of depositors who have lost their savings.  

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Travel, declare and pay tax..

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Economy, Business And Markets

Wednesday, July 12, 2017

Int’l Prospects Improve After FATF Verdict

 

The Financial Action Task Force’s latest verdict regarding Iran, based on which active countermeasures were suspended again, has “opened up some space” for major international companies to start working with Iran once more, the minister of communications and information technology said.

“The US and a number of Arab countries, namely Saudi Arabia and the UAE, as well as Argentina, were looking to return Iran to its previous condition [of being a target of FATF countermeasures and create new restrictions by applying pressure,” Mahmoud Vaezi also told IRNA.

However, he added, “owing to the nuclear accord and normalization of Iranian ties, many Asian countries and allied nations along with the European Union and Britain resisted the pressures and did not let our country regress”.

FATF, the international standard-setting body on combating money laundering and financing of terrorism, voted in its June plenary week to extend the suspension of active countermeasures against Iran, but did not take the country off its blacklist of violating nations.

Vaezi said the fact that FATF has not set a deadline for the extension of suspensions, as it had last year, is a positive sign.

According to the minister, the top-tier delegation sent by Iran to FATF meetings emphasized on two issues that the intergovernmental organization specializes in.

“The first was that as a victim of terrorism itself, Iran is strictly against any transfer of money that would find its way to terrorist groups,” he said.

Iran has devised regulations to combat financing of terrorism in the past and will continue to devise new regulations “so that no Iranian money and no money going through Iran” can reach terrorists.

Vaezi noted that the other significant point stressed upon by Iran is the matter of money laundering which itself can at times relate to terrorism.

The country has a clear stance that “we are against any kind of money laundering under any label”, he said, while noting that the FATF decision was in part due to the stance of the parliament and the administration.

In March 2016, the Iranian Parliament adopted a law for combating the financing of terrorism and expressed a high-level political commitment to implement the related action plan.

Iranian authorities have requested an International Monetary Fund assessment of the AML/CFT regime against the FATF standards, which will take place late 2018.

Iran has also become an observer in the Eurasian AML/CFT group.

Vaezi referred to combating money laundering as a serious global approach that had intensified especially after the September 11 attacks and terror activities of Taliban, Al-Qaeda and the self-styled Islamic State terrorist groups among others, stressing that all countries announced their commitment to prevent the financing of terrorism.

“Iran is among those countries and according to the framework and principles that we have in our country, we will fight terrorism financing and devise necessary laws,” he added.

Reiterating that the international climate is shifting in favor of Iran, Vaezi pointed to the recent landmark deal with the French firm Total as an example.

The $4.8 billion deal, which is to be invested in Iran, “is a huge development that also changes banking ties” and creates confidence in other countries that Iran is a safe environment for investment.

The deal with the French energy giant is the first major contract concluded between Iran and a top western company and has been signed for the development of Phase 11 of the South Pars Gas Field in the Persian Gulf.

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Iran, Vietnam ink MoU on int’l postal bill

Tehran, July 11, IRNA -- Post Bank of Iran and Vietnam Post signed a memorandum of understanding (MoU) on exchanging international postal bill through International Financial System in Universal Postal Union.

 

The MoU was signed by Chairman of Central Office of Iran Post Company Hossein Mehri and Managing Director of Vietnam Posts Pham Anh Tuan.

Deputy Minister of Information and Communications of Vietnam Nguyen Minh Hong also attended the meeting which was held on the sidelines of 12th Asian-Pacific Postal Union Congress (APPU).

During the meeting, Minh Hong expressed hope for further development in economic and social ties.

The 12th Asian-Pacific Postal Union Congress (APPU) was held with the attendance of some 32 member-states on July 3-7 in Tehran.

9376**2050

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ran producing high-quality TVs: Iranian official

Tehran, July 10, IRNA – Head of the Iran-Korea Joint Committee said that since 12 years ago Iran has been producing TVs at a high standard.

 

In the First ‘Made in Iran’ Conference held in IRIB International Conference Center on Sunday, Hossein Tanhaee said, “From each 1000 TV sets only three have a problem, which is world standard.”

Iran and South Korea have always been good economic partners, but due to the sanctions on Iran the trade decreased.

After the signing of the Iran-G6 nuclear deal, AKA Joint Comprehensive Plan of Action (JCPOA), many opportunities have opened up again.  

In a joint press conference with his South Korean counterpart Park Geun-hye, Iranian President Hassan Rouhani said on May 3, 2016 that they intended to triple bilateral trade to some $18 billion. The trade volume last reached that level in 2011, before international sanctions were imposed on Iran for its nuclear activities.

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TEHRAN – The latest report published by the Central Bank of Iran puts the country’s foreign debt at $8.481 billion by the end of the previous Iranian calendar year (March 20, 2017).

According to the report, foreign debt grew by $910 million year on year, ISNA reported.

The amount of debt increased from $7.571 billion in the first quarter of the past year to $7.910 billion and to $7.840 billion in the second and the third quarters, respectively.

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Reduced from 24 billion year previously....

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An Iranian man points to an oil production platform at the Soroush oil fields in the Persian Gulf. (Photo by Reuters)

Asian and European companies are negotiating participation in Iran’s oil and gas development projects which need $200 billion worth of investment, according to Minister of Petroleum Bijan Zangeneh.

Iran looks to absorbing 65 percent to 70 percent of this sum from abroad, the minister told Iran’s Parliament where he was Tuesday to answer questions about a $5 billion gas deal signed with French giant Total earlier this month, presstv.ir wrote.

Deputy Minister of Petroleum for International Affairs Amir Hosssein Zamaninia said the deal with Total has set the ball rolling for the conclusion of more contracts with international companies.

“I can assure you this isn't the last one. We'll see other contracts being made within the next few weeks," Zamaninia was quoted as saying on the sidelines of a conference in Istanbul on Tuesday.

Deputy Minister of Petroleum for international affairs Amir Hosssein Zamaninia addresses the 22nd World Petroleum Congress in Istanbul, July 11, 2017.

Zamaninia cited BP, Russia's Gazprom and Lukoil, and Malaysia's Petronas among the international companies which were having discussions with the country. 

According to vice chairman of the board of directors of the Iranian Petroleum Federation Reza Paydar, Denmark has proposed a $1 billion investment contribution to Iran's development plans, adding the two sides will soon begin to establish communication in this regard.

 

“The highest interest in investing in our country has been received from Austria, Norway, Sweden, the United Kingdom, Germany, and in a very limited form from Italy and Spain,” he told IRNA news agency.

In the upstream sector, 53 projects are currently prioritized with an estimated $108 billion in foreign investment.

“Our expectation is that this amount will be realized within a maximum of three to five years, which will pave the way for future investments in the next program,” Paydar said.

For downstream operations, two fields of activity have been defined in the refinery and petrochemical development sectors.

The total investment required in the two sectors is about $60 billion, some $40 billion of which will go to the petrochemicals and $20 billion to refining and converting crude oil into hydrocarbon products, Paydar said.

Iran’s oil industry officials have previously put total investments required in various sectors of the oil industry at $445 billion, including $230 billion in oil, $130 billion in gas, $20 billion in refining and distributing oil products, and $65 billion in the petrochemical industry. 

 

Steep rise in gas exports

 

On Tuesday, Zamaninia told the Istanbul conference that Iran's gas production would rise to 1 billion cubic meters a day by the end of the year from the current 800 million cubic meters (mcm) per day.

The country plans to establish a capacity for 365 mcm a day of gas exports by 2021, which is higher than the volume which the world's top liquefied natural gas producer Qatar is currently exporting.

 

Zamaninia said Iran’s export targets for the immediate future were its neighbors, including Iraq, Pakistan, Oman, the UAE and Kuwait but negotiations were also underway with the Turkish government for the transit of Iranian gas to Europe.  

“The transfer of Iran's gas to Europe is just an idea, because gas exports under the current situation are not cost-effective for Iran due to the international prices of gas,” he said.

According to a report by industry research group Cedigaz on Tuesday, European natural gas demand will barely register any growth from its current level of some 480 billion cubic meters a year (bcm/year), with consumption set to begin to decline post-2025.

The Paris-based group forecasts that Europe is the only part of the world where gas demand is stagnant, while predicting strong growth elsewhere, Platts reported.

China and the Middle East are expected to lead the way in gas demand growth, accounting for respectively 28 percent and 24 percent of the incremental volume over the projection period to 2035, Cedigaz said.

At the national level, the largest growth in gas demand is expected in China, India, Iran, the US and Saudi Arabia.

 

Sanctions unlikely

 

Iran has 18.2 percent of proven gas reserves, ahead of Russia and Qatar, according to the BP Statistical Review of World Energy.

Total’s deal earlier this month involves helping Iran increase gas output from the giant South Pars gas field, which the country shares with Qatar.

The deal for phase 11 of the field marked the first by a major global energy company signed with Iran since the easing of sanctions against Tehran in January 2016.

Under the deal, Total, Iran’s Petropars and France’s CNPC are about to produce 2 billion cubic feet of natural gas per day for 20 years, Zangeneh told Iranian lawmakers on Tuesday.

According to the minister, the annual value of products from the phase is estimated at $5 billion, in which Total has a 50.1-percent stake, alongside Chinese state-owned energy company CNPC with 30 percent and National Iranian Oil Co subsidiary Petropars with 19.9 percent.

Zangeneh said the contract would help, “God willing”, prevent the US re-impose sanctions on the Islamic Republic.

"With the contracts signed last week, with the Chinese company and Total and the Iranian company, that is also a very good indication that the assessment by international oil companies is that the return of sanctions is very unlikely, if not impossible," Zamaninia said in Istanbul.

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MEHR NEWS AGENCY

Omani Foreign Minister Yusuf bin Alawi bin Abdullah met and held talks with Iranian President Hassan Rouhani and Foreign Minister Mohammad Javad Zarif on Wednesday.

Heading a high-ranking delegation, Bin Alawi arrived in Tehran on Tuesday night for an official visit to hold talks with senior Iranian officials, Mehr News Agency wrote.

In a meeting with President Rouhani on Wednesday, the two sides discussed mutual issues of interest.

He also held talks with Foreign Minister Zarif on expansion of bilateral ties.

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As a pioneering sector, oil industry could take advantage of foreign investment, Petroleum Minister Bijan Zangeneh said in Parliament open session on Wednesday.

Commenting on the deal signed with Total Company to develop phase 11 of South Pars gas field, he pointed to management and timing as important factors.

“We have to start the job somewhere and attract foreign investment so that the country commence a period of economic momentum,” said the minister.

In response to certain criticisms expressed by some parties against the deal with Total, Zangeneh said the contract has been approved by a seven-member committee.

The committee consists of four former ministers and experts, representatives of Presidential Office and Supreme National Security Council.

National Iranian Oil Company (NIOC), Total, CNPC and Petropars signed a $4.8 billion contract on July 3 for development of South Pars Gas Field phase 11.

Total will operate the SP11 project with a 50.1-percent interest, while Iranian Petropars Company will have a share of 19.9 percent and the Chinese CNPC 30 percent.

The contract was signed by the NIOC Chief Ali Kardor, Petropars Head Hamid Akbari, Total’s Pouyanne and CNPC CEO in the presence of Zangeneh and the French and Chinese ambassadors to Tehran as well as parliamentary Energy Committee members and senior Petroleum Ministry officials.

Iran’s annual petrochemical production capacity stands at 62 million tons and by the end of this Iranian year (March 20, 2018), the figure will reach 72 million tons when six new projects come into stream. The total value of net sale of the products will rise up to $17 billion.

National Iranian Oil Company (NIOC) and an international consortium, led by French Total, signed Iran’s new oil contract in the post-sanction era for development of the phase 11 of South Pars.

Under the $4.8 billion gas deal, 56 million cubic meters of gas will be added to Iran’s capacity to extract gas from South Pars gas field common with Qatar.

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Thanks as always Screwball. Major News .

[pokerplayer]

8 hours ago, WheresmyRV? said:

Sorry about that PP, here's a new number.  This should work.

1-877-227-5511

 

LOL, strike #2. Its a 1-877 # that can be only dialed in the USA  . What is the actual name of Customs? I will call directory here in Canada.

 

pp

[jmartin1145]

1 hour ago, pokerplayer said:

 

LOL, strike #2. Its a 1-877 # that can be only dialed in the USA  . What is the actual name of Customs? I will call directory here in Canada.

 

pp

You have great patience PP

[Freedomwish]

1 minute ago, jmartin1145 said:

You have great patience PP

 

That's why when this thing pops, the first few bottles will be on me to celebrate once I drive across the northern border! 

[jmartin1145]

I guess it is not customary to call customs. They come to you. Its not supposed to work that way.

[jmartin1145]

3 hours ago, Freedomwish said:

 

That's why when this thing pops, the first few bottles will be on me to celebrate once I drive across the northern border! 

Did you go to Bourbon? Im trying to save your life. lol

[Freedomwish]

18 hours ago, jmartin1145 said:

Did you go to Bourbon? Im trying to save your life. lol

 

Going into about 8 years waiting for either currency, I'm drinking whatever to help lessen the anxiety lmao 

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A35-member delegation from Iran Chamber of Commerce, Industries, Mines and Agriculture led by the chamber's chief, Gholamhossein Shafei, have wrapped up a visit to Belgium and Luxembourg to discuss expansion of economic cooperation.

The delegation arrived in Brussels on Tuesday and held meetings with officials, including Minister-President of Flanders Geert Albert Bourgeois and President of the Federation of Belgian Chambers of Commerce Rene Branders, in which both countries' representatives expressed their interest in increasing the level of mutual cooperation, ICCIMA's official news website reported.

"Both countries' officials and private sectors are willing to expand bilateral relations," Shafei said, adding that Iran has a stable economy and is one of the safest and most lucrative countries for investment in the region.

ICCIMA's chief noted that Belgium could help Iran develop railroads while there have been fruitful negotiations between Iran's Shahid Rajaei Port and Port of Antwerp in Belgium to increase trade volume.

He also pointed to health, pharmaceutical, petrochemical and oil sectors as other potential grounds for mutual activity.

Bourgeois said his country is also interested in improving relations with Iran and noted that Belgium is European, not American, and that is why their offices in Tehran have been open during the years sanctions isolated Iran's economy.

"We are interested in increasing our ties with Iran because of its powerful and creative workforce. Therefore, Belgium is ready to bolster its relations in all possible economic sectors with Iran," he added.

Bourgeois announced that in November, a Belgian delegation will visit Tehran and Isfahan to assess ways of augmenting economic ties.

"We are the country of small- and medium-sized enterprises with famous production facilities that benefit from well-known researchers," he said.

Shafei said after the nuclear sanctions on Iran were lifted, a lot of opportunities in the country's economy have emerged and the private sector is ready to begin its cooperation with Belgian SMEs.

He noted that Belgium could invest in Iran's unfinished projects while both countries can engage in joint investment in a third country.

"Iran and Belgium have great tourism potentials and after 60 years, there are direct flights between the two countries which will increase the number of tourists and businesspeople visiting Iran and vice versa," he said.

Iran-Belgium trade stood at $723.83 million in 2016, according to figures released by ICCIMA.

Iran exported close to $190.57 million worth of goods to Belgium during the period, registering a 147% rise compared with 2015. Belgium exported nearly $533.27 million worth of products to Iran over the same period, indicating a 20.4% year-on-year increase.

The Iranian delegation left Belgium for Luxembourg on Thursday to discuss matters of mutual interest with their counterparts.

During the trip, Shafei met with the head of International Relations and Communications Department at the Central Bank of Luxembourg Cedric Crelo and discussed establishing mutual banking ties.

ICCIMA's chief mentioned the previous trip of young entrepreneurs and companies from Luxembourg to Iran a couple of months ago, in which both countries' businesspeople got to know each others' capabilities and demands.

"Lack of banking relations is currently the main hurdle of Iran's international trade and Luxembourgian banks can help Iran establish new international banking ties," Shafei added, noting that there are a lot of mutual banking, financing and investment opportunities that need to be focused on.

Back in February, Economy Minister Ali Tayyebnia met with Luxembourg Minister for Foreign and European Affairs Jean Asselborn at the Ministry of Economic Affairs and Finance in Tehran to sign an agreement for promoting mutual support for investments with the goal of guaranteeing investment safety for the businesspeople of both countries.  

Iran-Luxembourg trade amounted to $4.29 million in 2016, registering a 127.6% increase compared with 2015.

Over the period, Iran exported $394,000 worth of goods to Luxembourg and imported close to $3.9 million in return.

According to ICCIMA, Iran had a $922,000 trade deficit with Luxembourg in 2015.

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Economy Minister Ali Tayyebnia has called on Bank Melli Iran, the nation's biggest lender, to be at the vanguard of much-needed reforms in the ailing banking sector by supporting businesses, reducing interest rates and developing Internet banking.

"As a leading bank in financing small- and medium-sized enterprises, BMI must engage in measures to bankroll businesses and play an effective role," Tayyebnia was also quoted as saying by IBENA.

As the Central Bank of Iran announced early June, 300 trillion rials ($8 billion) are to be allocated by the banking system this year with the SMEs as "the first priority".

The minister was speaking at an event held to mark the inauguration of BMI's museum in Tehran, which coincides with the lender's 90th founding anniversary. Owing to the significance of the lender for the banking system, First Vice President Es'haq Jahangiri and the head of Iran's Cultural Heritage, Handicrafts and Tourism Organization Zahra Ahmadipour were present, alongside BMI board members and CEO Mohammad Reza Hosseinzadeh.

Echoing his past remarks, Tayyebnia referred to high bank interest rates as a serious dilemma, adding that considering the longstanding experience of BMI in risk control, "we expect it to be a leading voice in reducing interest rates".

Last year, following the agreement of private and state-owned banks' CEOs and a subsequent verdict by the Money and Credit Council, deposit and interest rates were set at 15% and 18% respectively. But because of a shortage of resources, lenders did not stick to these rates and offered them at higher figures.

Tayyebnia also pointed to the efforts of the state-owned bank in taming its ratio of non-performing loans to total loans, saying the bank is expected to conform to international standards.

As announced recently, Bank Melli Iran registered a relatively good performance in reducing its NPL ratio and brought it down to 7.8%, but it is still a far cry from the international standards of around 4%. The bank also plans to establish a debt collection agency by the end of the current fiscal year in March 2018.

The economy minister also urged BMI to use the opportunities created as a result of the nuclear deal, strive harder in line with the general policy of shedding excess assets and lead the charge in employing information technology and online banking to improve transparency and fight corruption.

Jahangiri stressed the role of banks in developing the economy, conceding that lenders are facing many problems that have been publicized.

"However, it would not be fair to only inflate the problems and ignore the services because we must all join hands to overcome the problems," he added.

The official stressed the need for reducing interest rates, increasing the capital of banks, absorbing foreign resources and financing the private sector.

12% Rate Possible

Bank Mellat CEO confirmed recent talks that bank interest rates are to be brought down to as low as 12%, saying "suggestions are for the rates to go below 15% and to reach the rates that have been put forward".

Hosseinzadeh announced that since the implementation of the nuclear accord in January 2016, his bank has managed to establish 140 correspondent banking relations and is currently engaging in negotiations with 180 other banks to establish more links.

"During this period, more than €20 billion worth of foreign exchange transactions were made and €2 billion worth of letters of credit were opened," he added.

According to the chief executive, who is also the head of the Coordination Council of State-Owned Banks, the lender managed to upgrade its currency balance considerably and brought it up to €500 million from the previous €1.6 billion in the negative at the height of sanctions.

He said Bank Melli Iran has devised a roadmap to decrease its ratio of NPLs to 5% within the next two years.

Hosseinzadeh concluded by saying that Bank Melli will also focus on supporting the activities of startups and knowledge-based companies in the current fiscal year.

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1. Economy
2. Business And Markets

Saturday, July 15, 2017

BSI Planning Financial Supermarket

 

 

 

Bank Saderat Iran is to provide its customers with a wide range of financial services under one roof with the establishment of a “financial supermarket” in the near future. According to the bank’s website, the new service, in line with modern banking methods, makes it possible for customers to take out loans, exchange currencies, purchase insurance and buy stocks among other services through any BSI branch across the country. Founded n 1952, the privatized lender runs the largest banking network in Iran with around 2,500 active branches in Iran. With 27 independent and joint branches, Bank Saderat also has the largest Iranian banking presence overseas.

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In light of the importance of regulating fintech firms to prevent any problem in the monetary market, the Center for E-Commerce Development's deputy has announced that the Central Bank of Iran will define the framework of fintech operations by the end of summer.

"CBI is the only regulator of financial markets in the country, but the regulations that the bank is devising will be in line with the directive approved by the Supervisory Committee for Online Businesses," Faranak Oskouei also said in a national television broadcast on Friday.

Back in December, the Center for E-Commerce Development announced that it would regulate the operation of unofficial payment tools, referred to as aggregators, after profiling owners and users.

The framework requires users to provide a phone number (owned by the business) for being allowed to use the payment services. The measure has been repeatedly criticized for neglecting issues concerning the operation of startups.

However, Nasser Hakimi, the director of CBI’s IT Department, announced in March that the framework developed by the e-commerce authority is not approved by the central bank and it takes at least three months for CBI to set the redlines of fintech operations.

According to CBI regulations, innovative financial services are allowed to operate as long as they are not involved in money creation, currency exchange and offering payment tools (like cards) and attract deposits.

The Center for E-Commerce Development's deputy elaborated on the operations of online businesses, which need a payment gateway to sell goods and services online.

"After an online business obtains e-namad (a local online trust logo for e-shops), some of them directly approach payment system providers–a majority of which are affiliated with banks–for a payment gateway while others use payment aggregators as mediators in online payments," Oskouei said.

Payment aggregators allow sellers to quickly launch a payment gateway on their website, without getting involved in the demanding process imposed by banks and other PSPs.

Oskouei noted that some 25,000 online businesses have acquired their payment gateway from PSPs, but nothing has been done regarding those that use payment aggregators.

"There are no exact numbers for online shops using payment aggregators but they are estimated to be between 100,000 and 300,000," she added.

According to Oskouei, currently 50 fintech firms have announced their commitment to continue their operations until CBI regulations are ready for implementation.

"About two months ago, the Center for E-Commerce Development started registering fintech firms and their affiliated online shops, but the plan was not welcomed and only 15 firms have registered so far," she said.

Milad Jahandar, secretary of Fintech A (an association of Iranian fintech firms), also spoke in the Friday night TV report and said the current regulations of payment services cannot be implemented and gave fintech firms cold feet.

"Regulations ask for the website address of all customers while many of them do not have one," he explained.

Jahandar noted that according to Article 4 of e-commerce center's bylaw, there should be three representatives from the sector for devising these regulations while no one from fintech firms has participated in the process.

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Majlis Research Center has put forth eight proposals for the consideration of Foreign Ministry, including one for the revival of the economic department in the country’s diplomatic apparatus.  

The center stated that the economic department should enjoy the know-how of qualified experts from different sectors.

“With a strong mandate, the department can act as the main center of decision-making and coordination of different organizations on the economic stage,” the center’s proposal was cited as saying by Bourse Press.

Another proposal urged the ministry to select well-known experts from different fields of economy and commerce.

The research center backs the idea of carrying out a fundamental reform over the state of joint economic commissions and calls for serious negotiations on preferential trade agreements with other countries, particularly neighboring and Muslim-majority countries.  

“The Foreign Ministry should press ahead with World Trade Organization accession talks,” the center said.

Trade among WTO members comprises over 90% of global trade. WTO accession will pave the way for forging economic ties with 150 countries.

WTO received Iran’s application for accession on July 19, 1996. It took the organization nine years to accept Iran as an observer member.

In 2005, WTO eventually established a working party composed of a group of representatives tasked with assessing Iran’s accession bid. However, the chairman of the party has not yet been elected.

At present, Iran is the world’s biggest economy outside the World Trade Organization.

Given US objections over Iran’s accession to WTO and other international organization, the research center said, regional cooperation can act as a preemptive factor and guarantee political and economic stability in the face of foreign threats.  

Reviving and making use of the full capacity of regional organizations, including Economic Cooperation Organization, and tapping into their potential are among such regional collaborations.  

Foreign direct investment is one of the key indices to gauge the efficiency of economic diplomacy. The envisioned 8% economic growth as per the sixth five-year development plan (2017-22) would need $150 billion in FDI, 40% of which should come from foreign resources.

With the unraveling of sanctions regime, all hurdles in the way of investment, including restrictive rules and regulations, should be cleared.

The ministry needs to present a real picture of economic capacities of the country as well as the reduced risks of investment in Iran to attract investment, the center argues.

Referring to the wealth of Iranian expatriates, the research arm of the parliament urged the government to revise foreign investment regulations. It also believes that foreign policy and diplomacy should be focused on economic relations.

“Foreign Ministry needs to shape strong economic ties with different countries,” it concluded.

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After the US dollar reached its three-month high in Tehran’s market last Tuesday, the greenback’s rally ended and it lost against rial for four days in a row, changing hands for 37,820 rials on Saturday.

According to Tehran Gold and Jewelry Union’s website, the rial was quoted at 37,930 to the dollar less than a week ago, showing the USD bull run in the currency market has ended.

However, euro, which is another high demand currency in Tehran’s market, gained 110 rials on Saturday. The rials was quoted at 43,990 to the euro.

However, the official rates of high demand currencies in Tehran’s market have all gone up. The rial was quoted at 32,624 and 37,367 to the greenback and euro, marking an increase of 15 and 76 rials compared with last week’s close, respectively.

Bahar Azadi gold coin changed hands for 11,770,000 rials ($313.8) in Tehran’s market on Saturday, down by 10,000 compared with last Thursday, but the other benchmark coin, Emami, gained 20,000 rials and sold for 12,085,000 rials ($322.2).

Half Azadi and Quarter Azadi gold coins lost 10,000 rials and 2,000 rials of their value on Saturday to reach 6,365,000 rials ($169.7) and 3,715,000 rials ($99), respectively.  

 

 

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Iran, Vietnam to accelerate banking co-op

Tehran, July 16, IRNA – Iranian and Vietnamese ministers inked a memorandum of understanding (MoU) on Sunday in Tehran for accelerating resumption of banking cooperation between the two countries.

 

The signing ceremony was held in Tehran with the participation of Iran’s Minister of Industry, Mine and Trade Mohammad Reza Nematzadeh and Vietnam’s Minister of Agriculture and Rural Development Nguyen Xuan Cuong.

The ceremony was held on the sidelines of the ninth meeting of the Joint Economic Commission between Tehran and Hanoi.

Nematzadeh and the Vietnamese minister agreed to draw a road map in two months for bilateral cooperation in the cultural, social and economic fields. 

Meanwhile, the Post Bank of Iran and Vietnam Post signed a memorandum of understanding (MoU) on exchanging international postal bill through International Financial System in Universal Postal Union one week ago.

The Vietnamese President Trần Đại Quang, in a visit by chairman of Iran Chamber of Commerce, Industries, Mines and Agriculture (ICCIMA) in Hanoi on April 20, welcomed the expansion of relations between the merchants of Iran and Vietnam and urged the Vietnamese banks to initiate the relations with the Iranian banks.

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