Iranian Rial

[screwball]

The Central Bank of Iran on Sunday published a document on policies related to the operation of fintechs, clarifying its stance about the role of the regulatory body and defining non-bank firms and banks relations among other issues.

The CBI has made it clear that it will neither establish a new institution for supervising fintechs, nor would it issue licenses for the operation of financial services providers. Instead, it would devolve the responsibility to authorized financial institutions.

In the new model, the central bank will define “roles” and regulatory “frameworks”, without directly getting involved in the process of authorizing innovative financial services.

“Fintechs will be linked to the country’s financial system through authorized financial institutions … The risks will be included in the institutions’ total risks based on a partnership agreement … In return, financial institutions would benefit from [fintechs’] high potentials in developing innovative services, attract new customers and boost sales,” reads the document published on CBI website.

Banks and other financial institutions are permitted to outsource their operations to innovative companies. However, they are the sole bodies in charge of their customers’ data and will be held responsible for any fraud, abuse or data leak.

CBI will remain in charge of providing access to payment system data, as users and acquirers’ information are confidential by law.

The document also stresses that innovative services should not involve money creation, currency exchange, offering payment tools (like cards) and attracting deposits.

Financial services providers are also required to identify users of their services and keep track of all their operations. They might be asked to provide the records to CBI.

CBI’s former deputy for innovative technologies had announced plans to launch a new regulatory body specifically for fintech firms, which would license their operations. However, the replacement of the deputy led to a shift in CBI policy.

The regulatory body believes that the new model will also ease access to the nationwide payment and interbank networks.

Lenders Vs. Innovator

In the new model, fintech firms need to link up with banks if they intend to offer banking services and those active in the payment sector need to work with either banks or companies providing payment services.

Nasser Hakimi, CBI’s new deputy for innovative technologies, has repeatedly called on developers to link up with banks.

“The current condition of financial markets in Iran is totally different from that of other countries. You cannot survive unless you operate in close proximity with banks. You should be cautious enough to keep the partnership beneficial for both sides,” he said.

Nima Amirshekari, the head of Electronic Banking Department at the Monetary and Banking Research Institute, believes that the new method is the best possible solution for dealing with the rise of innovative financial services in Iran.

“The new measures would help diversify electronic services of Iranian banks. Currently, all banks are offering similar services provided by a limited number of banking solution companies,” he told Financial Tribune on Monday.

“Banks’ success in such a market depends on lenders' capacity to get along with innovators. Receptive banks would be able to stand far above the others.”

Amishekari argues that fintechs would also benefit from a decentralized approach.

“They now have the opportunity of negotiating with several banks and are more likely to form partnerships. But in the centralized model, the central bank would be their only option,” he said.

“Dealing with banks is more rewarding for fintech firms … Bankers put business [and profitability] first, whereas the central bank is expected to be more concerned about the compliance of services with regulations.”

Amirshekari said they would be blocked if they fail to meet CBI standards.

"However, CBI needs to be fully prepared for updating the model in the future to keep it as efficient as possible. What we call best practices today might become the cause of big problems 20 years later,” he said.

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TEHRAN- Iranian Deputy Transport Minister Asghar Fakhrieh Kashan announced that allocation of $12 billion of finance is to be finalized for being used in transport and urban development projects, ILNA quoted the official as saying on Sunday.

Explaining that no ceiling has been predicted for allocation of the approved $55 billion of finances in Iran’s budget, he added that by the time, $30 billion of the said amount has been specified for different projects proposed by various ministries and the share of transport ministry stands at $10 billion to $12 billion.  

Elaborating some of the transport ministry’s projects, Fakhrieh Kashan said that Iran is finalizing a €1.2-billion agreement with Russians for financing electrification of Garmsar-Inche Boroun railway project.

As he added, negotiations are underway for finalizing $500-million-loan from Azerbaijan to finance Rasht-Astara railway project.

Talks with China’s Exim Bank on electrifying Tehran-Mashhad railway have also been finished, he added.

Iranian transport ministry is mulling over receiving an €8-billion finance from South Korea for establishing the electrified double-track Isfahan-Ahwaz railway and construction of Chabahar-Zahedan railway, the official said.

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Shaparak Company, Iran’s national payment network operator, has reportedly notified all payment service providers in a letter that regulations concerning fees will be overhauled.

According to the letter, the issue of payment services’ fees has always been one of the biggest challenges for Iran’s payment system.

Noting that banks are currently shouldering the bulk of payment services’ fees, the Central Bank of Iran deemed it necessary to overhaul the regulations to provide relief to lenders.

Therefore, the letter urges PSP outfits, especially those who are active in the stock market, to be ready to adjust their financial statements with the new framework, CBI’s website reported.

Banks currently cover the fees for most types of payment services. A majority of transactions in Iran are done through POS terminals.  

Since December 2015, banks were obligated by CBI to solely pay the transaction fees.

Revenues from the fees are allocated to PSPs that offer services for accepting e-payments to support their infrastructure development.

CEO of Shaparak Company Mohsen Qaderi told IBENA that the letter was drafted after the last meeting with the heads of PSP companies about two weeks ago and sent to them only as a notification.

“The volume of fees that banks have to pay is increasing by the day, which necessities reform in the current system and a number of changes to the regulations,” he added.

Shaparak’s CEO noted that the exact time for the implementation of the plan has not been determined yet and the letter is just a heads-up for PSP companies. However, CBI is utilizing its full potential to start the plan by the end of the current Iranian year (March 20, 2018).

“The plan is being pursued by CBI with the full coordination of banks and PSP companies,” he said.

Twelve PSPs have so far been licensed by the Central Bank of Iran to operate in the domestic market. PSPs process about 1 billion transactions each month worth about 1 trillion rials ($31.7 billion) on average.

 Industry Reactions

Four of the aforementioned PSPs are currently active in Iran’s stock market. They will be probably more affected by the new regulations.

These PSP companies are Iran Kish Credit Card Company, Pasargad Electronic Payment affiliated with Bank Pasargad Iran, Beh Pardakht Mellat affiliated with Bank Mellat and Asan Pardakht Persian.

Among them, the CEO of Iran Kish Credit Card Company was the first to react to the letter. Sadeq Faramarzi has sent two letters to Securities and Exchange Organization and Shaparak Company in which he emphasized that due to a lack of sufficient financial data, there is no way to determine proper fees for payment services.  

“Any decision that changes the regulations of payment services’ fees should be postponed to the final months of the [fiscal] year [in March] so the companies are able to devise their next year’s budget plan according to the new regulations. Otherwise, shareholders of PSP companies will suffer losses and PSPs active in the stock market will face serious fluctuations,” he added.

This is while the head of CBI’s IT department noted that the new regulations are to eliminate the chances of a bubble in the value of PSP companies’ share in the stock exchange market.

“There is not going to be a shock for PSP companies, as we are only trying to modify the payment services’ fees since their volume has surged,” Nasser Hakimi also told Boursepress.

[screwball]

Just a heads up...lol

[Freedomwish]

52 minutes ago, screwball said:

Shaparak’s CEO noted that the exact time for the implementation of the plan has not been determined yet and the letter is just a heads-up for PSP companies. However, CBI is utilizing its full potential to start the plan by the end of the current Iranian year (March 20, 2018).

 

[Freedomwish]

54 minutes ago, screwball said:

Just a heads up...lol

[screwball]

32 minutes ago, Freedomwish said:

 

 Score December I am hoping

[markb57]

ah Jeeze...........

[screwball]

CBI governor arrives in Ankara to sign banking agreement

News ID: 4108888 - Mon 9 October 2017 - 13:29

Economy

TEHRAN, Oct. 09 (MNA) – The governor of Central Bank of Iran Valiollah Seif has arrived in Ankara to meet with his Turkish counterpart and other bank officials.

The trip has taken place following the agreement between the presidents of the two countries and the Memorandum of Understanding signed between the two sides’ ministries of economy, central banks, national libraries and television broadcasting.

During his stay, Seif and Turkish officials will negotiate to devise strategies in order to conduct currency exchange and financial transactions as part of boosting trade transactions.

In addition, the CB Governors of Iran and Turkey will sign an agreement on banking cooperation.

Last week, Iranian President Hassan Rouhani and his Turkish counterpart stressed resolve for increasing the volume of trade transactions up to $30 billion.

ZG/IRN82689895

[screwball]

Devise strategies in order to conduct Curren y exchange? Lol

[screwball]

Tehran, Ankara agree on draft document of bilateral swap of rial, lira

Ankara, Oct 10, IRNA – Draft document for bilateral swap of Iran's rial with Turkey's lira and trade exchanges between the two countries by local currency was signed on Monday by governors of Central Banks of Iran and Turkey.

Central Bank of Iran Governor Valiollah Seif and his Turkish counterpart Murat Cetinkaya signed the draft document.

On the sidelines of the signing ceremony, Seif told reporters that the document was signed upon emphasis of the presidents of Iran and Turkey during recent visit of Turkish President Recep Tayyip Erdogan to Tehran.

He added that the aim of the document is creating necessary grounds to expand trade and economic relations and facilitating trade by using local currencies to provide finance for trade and direct investment between the two states.

Seif said that upon the agreement, operating banks of the two countries may use means of international payments, including credits and letter of credits to finance trade by local and national currencies.

According to the orders of the presidents to accelerate the issue, the document is to be finalized in one week.

The draft and document will be signed decisively in the first joint economic meeting between the two countries and to be executed and in this concern the central banks allocated credits for each other to work reciprocally and businessmen may use this capacity.

To fulfill capacity of 30 billion dollars trade between Iran and Turkey there were obstacles, which are being lifted one by one, lifting banking restrictions was one of them.

In addition to the meeting, the Iranian central bank delegation had a meeting with officials of ECO Bank in Ankara.

It was proposed that representative bureau of the ECO Bank to be opened in Tehran, so a draft document was signed between Central Bank director general for international affairs and a member of board of directorate of ECO Bank here on Monday.

1391**2050

Follow us on Twitter @IrnaEnglish

[screwball]

1 minute ago, screwball said:

Seif said that upon the agreement, operating banks of the two countries may use means of international payments, including credits and letter of credits to finance trade by local and national currencies.

 

Nice...

[screwball]

Iran, Turkey sign deal to trade in own currencies

Tue Oct 10, 2017 07:13AM

1. Home
2. Iran
3. Economy

Valiollah Seif (center), the governor of the Central Bank of Iran, says a draft deal between Iran and Turkey to trade in their own currencies is instrumental in expansion of mutual economic ties. 

Iran and Turkey have signed a draft agreement to carry out trade activities based on their own local currencies instead of traditional foreign currencies such as the euro and the dollar.  

The agreement was signed during a visit to Ankara by Valiollah Seif, the governor of the Central Bank of Iran (CBI).  

“The agreement is meant to help prepare the ground for the expansion of mutual economic relations between Iran and Turkey and also facilitate trade in mutual currencies of the two countries,” Seif was quoted as saying by Iran’s IRNA news agency. 

“Based on it, Iran’s Rial and Turkey’s Lira can be easily converted into each other and merchants on both sides of the border can accordingly use those currencies for their trade activities.”  

The official emphasized that this could help reduce the costs relating to the conversion as well as the transfer of currencies.

He added that the banks of the two countries can use the international payment tools to convert currencies into Rials and Liras. 

Seif emphasized that the draft agreement would be finalized during the next meeting of the joint economic commissions between the two countries and would thus become effective immediately.     

He emphasized that the initiative was in line with a mandate endorsed by the presidents of the two countries to boost their level of trade to as high as $30 billion per year. 

“The potential to boost Iran-Turkey trade relations to $30 billion exists but the barriers to this need to be removed one by one,” Seif emphasized in his interview with IRNA.

“One important barrier was the limitations in banking channels of the two countries. The agreement to trade in local currencies can help remove it.”

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He added that the banks of the two countries can use the international payment tools to convert currencies into Rials and Liras. 

 

nice and again..

[sandfly]

soon i hope by year ends

[pokerplayer]

With what I am reading and what SB posts I still think Oct, early Nov. at the latest.

 

  Just my

 

pp

[Freedomwish]

7 minutes ago, pokerplayer said:

With what I am reading and what SB posts I still think Oct, early Nov. at the latest.

 

  Just my

 

pp

 

Well, hope to see and drink with ya' soon up north by you PP!!

[Freedomwish]

6 hours ago, sandfly said:

soon i hope by year ends

[screwball]

Economy, Business And Markets

Wednesday, October 11, 2017

Iran Gov’t Opposed to Rial Devaluation

 

The government spokesman has announced that the administration is against any irrational devaluation of rial against the US dollar since its policy is to manage the rates of foreign currencies in a floating system.

Mohammad Baqer Nobakht was responding to reports that accuse the government of pushing up the rates of US dollar and gold coins in the domestic market to fix its hefty budget deficit.

“The government does not benefit from the devaluation of national currency since it will have inflationary effects on other commodities, which is against the administration’s macro policies,” Nobakht was also quoted as saying by IBENA.

The greenback and gold coin started rallying in Iranian markets about two weeks ago, as their value registered consecutive gains during the period.

According to Tehran’s forex market activists, an uptick in Emirati dirham’s remittance rate, speculative activities and fears that US President Donald Trump might pull out of the nuclear accord are triggering USD’s surge.

Nobakht, who is also the head of Planning and Budget Organization, noted that President Hassan Rouhani is aware of the growth of USD rate and the value of national currency, as he seriously follows the issue during Cabinet meetings.

“When nuclear sanctions were still intact, the administration managed to reduce the inflation rate, so even with Trump’s threats, we should not allow chaos to enter our markets,” he added.

Trump is expected to announce next week that he will decertify Iran’s nuclear deal, by claiming that it is not in the national interest of the United States. The move would mark the first step in a process that could eventually result in the reinstatement of US sanctions against Iran.

The government spokesman emphasized that Iran is a powerful and stable country that has proven its capabilities in managing the economy even in the most difficult situations and these threats only work if Iran lets them affect its markets.

“The administration will act against these fluctuations with strength and people should also help defend our country in this situation,” Nobakht added.

He refused the claim that the real value of USD exceeds 50,000 rials as some economic experts claim, noting that these rumors are only meant to increase the US dollar’s rate in the market.

“Only those who have been hoarding dollars will benefit from the devaluation of national currency,” he said, warning that the government will not allow a small group of people to exploit this situation.

This is while Seyyed Razi Haj-Aqamiri, a board member at Tehran Chamber of Commerce, Industries, Mines and Agriculture, believes that the recent rally of USD in Iranian markets is not linked to Trump’s decision about the nuclear deal, but is a result of the government’s new policy for managing the forex market.

“It seems that the government has decided that in order to improve the current situation of the economy, it is necessary that USD reaches its real value in the market,” Haj-Aqamiri told TCCIM’s official news website.

The TCCIM board member noted that non-oil exports will increase along with the USD rate, which will help inject more money into the economy.

“The last time when the rate of US dollar exceeded 40,000 rials in the domestic market, the government made the mistake of forcefully pushing it down since these market interferences lead to bigger jumps later,” he added.

 According to Haj-Aqamiri, there is no limit for the USD to reach its actual value in the domestic market, as the country’s economy determines the foreign currency rates in the market.

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Shortly after Iran and Turkey signed a draft of currency swap agreement, Governor of the Central Bank of Iran Valiollah Seif hailed the fact that the country has managed to reverse its banking stature as a result of the nuclear accord.

"After the Joint Comprehensive Plan of Action [the formal name of the nuclear accord], our banking relations can't be compared to the past, as we have suitable banking ties across the world and are able to meet our needs with regard to clearing banking transactions," Valiollah Seif told IRNA in Ankara.

However, he conceded that a number of banks, mainly major European lenders, remain wary of working with Iran, adding that expectations from JCPOA must not be unreasonably high.

Late Monday, as part of a CBI mission to Ankara headed by Seif, the central banks of Iran and Turkey signed a draft of the rial-lira currency swap agreement with the goal of preparing the ground for expanding economic and trade ties.

Seif and his counterpart Murat ?etinkaya signed the draft for "facilitating trade using the national currencies of both countries to finance trade and boost direct investment".

Hours earlier, CBI had signed a cooperation agreement with ECO Trade and Development Bank, based on which conditions and regulations for the activities of the bank's representative office in Iran will be devised.

In his latest remark, the CBI chief downplayed the effects of what US President Donald Trump has said in the past few days, saying "at its highest, Trump's talks will have temporary effects on banking affairs that might affect the currency market as well, but will not prevail in the long run".

Pointing to other manifestations of such remarks in the past five years that created temporary fluctuations in the market, Seif advised market players not to be swayed and consider the long-term perspective.

On Turkey, Seif said the draft agreement on currency swap will be finalized in the First Iran-Turkey Economic Commission that is to be held soon, adding that because of conditions created as a result of the agreement, "traders of both sides can engage in transactions with complete safety and the least cost".  

[screwball]

9 minutes ago, screwball said:

Economy, Business And Markets

Wednesday, October 11, 2017

Iran Gov’t Opposed to Rial Devaluation

 

The government spokesman has announced that the administration is against any irrational devaluation of rial against the US dollar since its policy is to manage the rates of foreign currencies in a floating system.

Mohammad Baqer Nobakht was responding to reports that accuse the government of pushing up the rates of US dollar and gold coins in the domestic market to fix its hefty budget deficit.

“The government does not benefit from the devaluation of national currency since it will have inflationary effects on other commodities, which is against the administration’s macro policies,” Nobakht was also quoted as saying by IBENA.

The greenback and gold coin started rallying in Iranian markets about two weeks ago, as their value registered consecutive gains during the period.

According to Tehran’s forex market activists, an uptick in Emirati dirham’s remittance rate, speculative activities and fears that US President Donald Trump might pull out of the nuclear accord are triggering USD’s surge.

Nobakht, who is also the head of Planning and Budget Organization, noted that President Hassan Rouhani is aware of the growth of USD rate and the value of national currency, as he seriously follows the issue during Cabinet meetings.

“When nuclear sanctions were still intact, the administration managed to reduce the inflation rate, so even with Trump’s threats, we should not allow chaos to enter our markets,” he added.

Trump is expected to announce next week that he will decertify Iran’s nuclear deal, by claiming that it is not in the national interest of the United States. The move would mark the first step in a process that could eventually result in the reinstatement of US sanctions against Iran.

The government spokesman emphasized that Iran is a powerful and stable country that has proven its capabilities in managing the economy even in the most difficult situations and these threats only work if Iran lets them affect its markets.

“The administration will act against these fluctuations with strength and people should also help defend our country in this situation,” Nobakht added.

He refused the claim that the real value of USD exceeds 50,000 rials as some economic experts claim, noting that these rumors are only meant to increase the US dollar’s rate in the market.

“Only those who have been hoarding dollars will benefit from the devaluation of national currency,” he said, warning that the government will not allow a small group of people to exploit this situation.

This is while Seyyed Razi Haj-Aqamiri, a board member at Tehran Chamber of Commerce, Industries, Mines and Agriculture, believes that the recent rally of USD in Iranian markets is not linked to Trump’s decision about the nuclear deal, but is a result of the government’s new policy for managing the forex market.

“It seems that the government has decided that in order to improve the current situation of the economy, it is necessary that USD reaches its real value in the market,” Haj-Aqamiri told TCCIM’s official news website.

The TCCIM board member noted that non-oil exports will increase along with the USD rate, which will help inject more money into the economy.

“The last time when the rate of US dollar exceeded 40,000 rials in the domestic market, the government made the mistake of forcefully pushing it down since these market interferences lead to bigger jumps later,” he added.

 According to Haj-Aqamiri, there is no limit for the USD to reach its actual value in the domestic market, as the country’s economy determines the foreign currency rates in the market.

 

Managed in a floating system 

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Iran and Ghana discussed different aspects of expanding banking relations during a meeting between the CEO of the Export Development Bank of Iran Ali Salehabadi and the chief executive of Ghana Export Promotion Authority, Gifty Kekeli Klenam, and her deputy Florence Arapa in Tehran. Klenam, who is also a member of the board at Ghana EXIM Bank, attended the meeting at the head of a delegation on Tuesday, in which both sides called for boosting banking interactions to improve bilateral economic relations. EDBI’s CEO said the meeting marks the starting point of banking relations between Iran and Ghana. “Connecting the exim banks of both countries will be the first step toward conducting banking ties and then we can discuss other issues like issuing guarantees, letters of credit and opening both short- and long-term credit lines,” Salehabadi said.

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Three Iranian private banks, namely Saman Bank, Parsian Bank and Bank Pasargad, plan to open branches in India, of which Pasargad’s request is in the final stage of approval, India’s ambassador to Iran announced.

According to Saurabh Kumar, Pasargad’s branch will open in Mumbai—India’s largest city and financial center.

“State-owned Indian banks like UCO Bank have also showed interest in setting up shop in Iran, which I hope to happen in the foreseeable future,” Kumar was also quoted as saying by IBENA.

The Indian ambassador made the statements during a meeting with Mohammad Reza Karbasi, the deputy for international affairs at Iran’s Chamber of Commerce, Industries, Mines and Agriculture, on Tuesday.

Kumar noted that during his recent meetings with his nation’s finance and economy ministers, removing barriers in the way of the two countries’ bilateral relations was emphasized.

He announced that a business delegation from the Associated Chambers of Commerce and Industry of India would visit Iran within two weeks to assess different aspects of expanding economic relations between the two countries.

ASSOCHAM, established in 1920 by promoter chambers, representing all regions of India, is one of the apex trade associations of India. The organization represents the interests of trade and commerce in India, and acts as an interface between industry, government and other relevant stakeholders on policy issues and initiatives.

The goal of this organization is to promote both domestic and international trade, and reduce trade barriers.

“Representatives from India’s public-sector banks will also accompany ASSOCHAM in their Tehran visit, therefore I ask for a few meeting to be held between them and representatives of Iranian banks,” Kumar added.

During the meeting, Karbasi said the establishment of commercial relations requires strong banking and financial ties, noting that representatives from the banking sector also accompanied ICCIMA’s delegations to Ukraine, Croatia and Spain on their recent visits.

“As always, ICCIMA welcomes business delegations and will take measures to boost mutual relations between the two countries,” he said. 

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he Central Bank of Iran distinguishes between temporary fluctuations and long-term trends in the foreign exchange market and closely considers this in its decision-making to ensure forex stability in the long run, the policymaking body's governor said.

"The CBI approach in devising foreign exchange policies has been to maintain the stability of market supply and demand, and prevent currency shocks," Valiollah Seif also wrote in his channel on the social-media platform Telegram on Wednesday.

He was referring to new heights recorded by the greenback in Iran's foreign exchange market where its exchange rate crossed the 40,000-rial psychological threshold, with some accusing the government of allowing the rial's slide to compensate its spending deficits.

The rial was quoted at 40,160 rials to the dollar on Wednesday, according to the Tehran Gold and Jewelry Union website.

According to the CBI chief, the surge in foreign exchange rates is tied to several economic factors, international developments and seasonal events such as the pilgrimage of Iranians to Karbala in Iraq for commemorating Arbaeen, the 40th-day anniversary marking the martyrdom of Imam Hussein (PBUH) and his companions in 7th century AD.

"Just like the previous year, the central bank will work to keep the exchange rates from increasing too much and prevent sudden volatility," Seif promised.    

[screwball]

Iranian Economy Minister, Masoud Karbasian along with the Governor of the Central Bank of Iran Valiollah Seif left Iran on Wednesday to take part in the autumn meetings of the International Monetary Fund and the World Bank in the US. CBI’s deputy governors, Peyman Ghorbani and Gholamali Kamyab are already in Washington to attend the meetings. The joint meeting of IMF with the World Bank Group is held biannually, with the central bank governors and economy ministers of all member countries attending. This year’s autumn meeting will be held in Washington on October 12-14. The presence of international banking and economic officials in this meeting willl be a good opportunity for Iranian delegation to discuss expansion of banking and business ties with other countries