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http://news.xinhuanet.com/english/2017-11/11/c_136745069.htm.........

 

Iran seeks to promote role of rial in foreign trade: official 

Source: Xinhua| 2017-11-11 21:16:58|
 
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TEHRAN, Nov. 11 (Xinhua) -- The Central Bank of Iran (CBI) is working to expand the role of Iranian currency, rial, in the basket of its foreign trade, the head of CBI's Exports Department was quoted as saying by Financial Tribune daily on Saturday.

In line with plans to eliminate the U.S. dollar from Iran's foreign trade, the Central Bank of Iran is pursuing the policy of promoting the role of Iranian currency in the basket of its major trade partners, Samad Karimi said.

"The goal of the central bank is to entrench the rial in the currency basket of other nations, meaning that our major business partners would employ the Iranian national currency for imports as we use their national currencies," Karimi said.

"CBI has defined the regulations so that Iranian banks can open rial accounts for their foreign peers, which also paves the way for foreign banks to open accounts for their Iranian counterparts as part of multilateral monetary agreements," he said.

The U.S. dollar is in no longer used in the foreign exchange interbank system of the country, he added.

Iran has signed two agreements with Turkey and Pakistan to trade in their local currencies.

Iran and Turkey's strong political will has led to the currency swap agreement that was finalized some weeks ago, Karimi said, adding that "such a will currently exists between Iran and Russia as well and the negotiations have gotten close to suitable results."

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The Central Bank of Iran has parliamentary approval to receive 50 trillion rials ($1.19 billion) to start the next phases of the scheme to write-off fines on non-performing loans with the aim of reviving the principal amount, according to a member of the board of directors of the Planning and Budget Commission of the parliament. “One hundred trillion rials ($2.39 billion) had been allocated to Bank Maskan [the agent bank of the housing sector], but it used 50 trillion rials of that amount,” Hadi Qavami was quoted as saying by ICANA, the official news portal of the parliament. The MP said the remainder of the money will now be given to the central bank for implementing the loan fine forgiveness scheme.  

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EconomyDomestic Economy
Thursday, December 28, 2017

Iran Gov’t Says 40m Eligible for Cash Subsidy

 

Minister of Cooperatives, Labor and Social Welfare Ali Rabiei says nearly 40 million people have been identified as eligible for the government’s Cash Subsidy Program.  Assuring the public that no one will be removed from the list of monthly cash recipients, he said:  “Monthly minimum wage of about 9 million rials ($214) will be the criterion in assisting those in  need,” IRIB news portal reported.  “There are close to 4.7 million Iranians supported by the Imam Khomeini Relief Foundation, 3.6 million by the State Welfare Organization, and three million female householders. In addition to these, close to 8 million people in rural areas are grappling with economic challenges. These are only a part of the population who need to be supported financially,” he added.  The government is planning to save 88 trillion rials ($4.47 billion) in the upcoming fiscal (starts in March 2018) by removing 34 million people from the cash subsidy list. “The government does not intend to channel a rial from these resources (money saved from the shorter cash subsidy list) to the treasury,” government spokesman Mohammad Baqer Nobakht said last week, stressing that all the freed-up money will be spent on improving the lives of the destitute.

 

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On 12/27/2017 at 7:58 PM, screwball said:

Iran Gov’t Says 40m Eligible for Cash Subsidy

 

I may apply for a subsidy if something does not happen right quick !!  :) Also my friend from Iran says his family is optimistic about a rate change but just can't see it moving to $2 + per. Their hoping if and when it changes they will see about .30 to .39 per.

 

SB had mentioned about tying it to the gold standard or something to that effect, but they know nothing about that. Also my friend has been here 20+ yrs so he is in the dark as much as we are.

 

pp

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Yes PP there was an article that said the rial was going back long time ago that it was weighted against four grams of gold as per what’s in law...I then read once that said four grams of silver.....either way I put it $2....appt the end of the day we will be winners no matter what...let’s hope..lol

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It is planned to remove zeros off currency and make the rial value real," Iran's government website quoted Ahmadinejad as saying. "The value of rial, under the law, is calculated on the basis of the price of gold. For some reason, the rial has been devaluated and we have to return its value to the one existing in the law."

 

i then hunted news or arti les and official documents and found the grams of gold reference and four grams...

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head of lawmakers’ vote on the government’s proposed budget for the fiscal 2018-19, the parliamentary research center has analyzed the housing and urban development portions of the budget, deeming it a highly faulty roadmap that will fail to alleviate deep-rooted issues in the ailing sector, which accounts for over 5% of the country’s GDP.

“A review of policies and programs undertaken and their compliance with the legal mandates in the housing and urban development section of the budget bill indicate that the predicted measures and sources of credit will be unable to resolve the challenges and problems of this sector and lack the necessary regulations and credits to meet the needs of the sector,” Majlis Research Center writes in its analytical report published on its website.

The budget bill “showcases the same yearly weaknesses and even lack of behavioral organization in drafting the budgetary articles and measures [concerning the housing sector]”.

According to the think tank, the budget bill does not fully adhere to the qualitative and quantitative goals set in the Sixth Five-Year Development Project (2017-22) and therefore if it is approved as it is, it will surely fall short of fulfilling its commitments to the country’s housing vision.

Renovating and revitalizing at least 10% of distressed urban areas, organizing population demographics, committing to building various kinds of housing projects (e.g. Mehr Housing, Social Housing) and drafting and implementing schemes in line with the current and future needs of urban and rural areas for promoting sustainable development were the main points highlighted by the research center.

As MRC outlines, the fiscal 2018-19 budget is “completely bereft of any fundamental approaches to bring about a housing market recovery, address demographic changes and make concerted renovation of distressed areas” among other things, and as evidence, points to a variety of articles injected into the budget without due consideration.

For instance, a budget clause decrees that agent banks are allowed to allocate foreign exchange loans to investors in the private sector, cooperatives and municipalities for development projects from resources allocated from the National Development Fund of Iran.

The clause, however, fails to mention the volume of foreign exchange loans in addition to their interest rates. It designates municipalities and local governments as the entities in charge of guaranteeing projects without bestowing them any other authority that MRC says could have adverse affects and proposes the government’s Economy Council as a suitable replacement.

  Proposed Measures

The parliamentary think tank then lists a number of measures that could be added to the budget law.

It calls for the Ministry of Roads and Urban Development to be bound by law to attract local and foreign investments for renovating at least 10% of all distressed areas by the end of the next fiscal year (March 2019) and employ the latest in construction technologies.

It also proposes that at least 50% of all major home construction plans are implemented in distressed areas and calls on Roads Ministry, Interior Ministry and municipalities to be obliged to stick to all standards of urban development based on current and future living needs, especially as the country is vulnerable to earthquakes.

In another section of the report, MRC reviews credits allocated to the housing and urban development sector and enumerates entities that have had their budgets increased or decreased.

The Roads Ministry has been awarded a 2.12% budget increase to bump up its credits for the fiscal 2018-19 to 86.43 trillion rials ($1.9 billion) while a couple of urban development companies affiliated with it are set to receive a helping hand as well.

On the other hand, the ministry’s research center in tandem with a slew of municipalities of major cities, including those of Tehran, Mashhad and Isfahan, are to experience budget cuts.

In the concluding section of its report, the think tank points out that similar to previous years, the housing and urban development sector is impacted by a variety of factors, namely the rising foreign exchange rate in the budget law, which will prepare the ground for increasing the finished cost of building homes, weakening the purchasing power of households and continuing the recession in this sector.

Therefore, with an eye toward other influential factors mentioned in the report, MRC proposes other reform measures in the fiscal 2018-19 budget law.

It stresses on the importance of correcting the system of pricing housing units, boosting productivity in various stages of construction and allowing the government’s debts to municipalities to be swapped with the debts of municipalities to the Social Security Organization and the Iran National Tax Administration.  

 

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On 31/12/2017 at 10:16 PM, pokerplayer said:

 

I may apply for a subsidy if something does not happen right quick !!  :) Also my friend from Iran says his family is optimistic about a rate change but just can't see it moving to $2 + per. Their hoping if and when it changes they will see about .30 to .39 per.

 

SB had mentioned about tying it to the gold standard or something to that effect, but they know nothing about that. Also my friend has been here 20+ yrs so he is in the dark as much as we are.

 

pp

 

What does you friend say are the real reasons for the riots? Monetary policy?

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46 minutes ago, screwball said:

 

What does you friend say are the real reasons for the riots? Monetary policy?

 

Mostly. There is an extremely large gap between those that have and those that don't. Lots of young people who can't find work, housing and their future just looks bleak.

 

Of course that is only his thoughts because people he talks with are biased against the Gov't.

 

   pp

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eputy Economy Minister Hossein Mirshojaiyan has underplayed the gap between the official and open market foreign exchange rates, saying that a 17% difference between the two would not deter the Central Bank of Iran from moving ahead with rate unification.

The longstanding pledge to unify the two rates has been floated by CBI several times only to be postponed once again.

Mirshojaiyan, however, ascribed the current foot-dragging to CBI’s lack of effective correspondent relations with other international peers.

“The forex rate unification only hinges upon the establishment of foreign correspondent ties between the central bank and other international lenders so that forex transactions could take place easily which has not yet materialized,” Mirshojaiyan was quoted as saying by IBENA.

Private sector figures and analysts had pinned their hope on the administration of Hassan Rouhani to finally end the country’s dual exchange rate regime and thereby float the rial, which they consider a big step toward transparency and for strengthening exports that have been weakened in the past.

However, recent volatility in the currency and gold markets, which has seen the rial tumble to a historic low against the US dollar has dampened those hopes. Uncertainty around the fate of the 2015 nuclear pact reached between Iran and world powers after US President Donald Trump entered the White House has also further soured the mood, as the impulsive leader has repeatedly threatened to scrap the deal unilaterally and reinstate sanctions.  

The official added that more important than forex rate unification would be market stability because appropriate correspondent ties have not materialized yet.

“As long as rate unification has not happened, all the criticism is directed at it, but if it is implemented and we fail, then the results would be far worse,” he said.

Mirshojaiyan also weighed in on fears of a double-digit inflation, saying that a a two-digit figure would not matter because “that would incorporate an inflation of both 99% and 10%”.

However, he predicted that inflation would remain in the single digit until the end of the current fiscal year in March.

Iran’s inflation rate eased into single digits for the first time in a quarter century in the summer of 2016.

According to the International Monetary Fund, Iran’s  inflation is projected to pick up temporarily in 2018-19 from 9.9% in 2017-18, if a fuel price increase is approved, and return to single digits in the medium-term aided by prudent policies.

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Just now, screwball said:

The forex rate unification only hinges upon the establishment of foreign correspondent ties between the central bank and other international lenders so that forex transactions could take place easily which has not yet materialized,” Mirshojaiyan was quoted as saying by IBENA.

 

Yeo...hence the riots....hit the button send the fax and let’s get this party started 

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Yep....

 

ran will need to build more than five million new homes in the next decade to fulfill its household requirements, the deputy for housing at the Ministry of Roads and Urban Development said.

Hamed Mazaherian made the statement in his speech at the two-day Fifth National Conference on Applied Research in Civil Engineering, Architecture and Urban Management that commenced on Wednesday at Milad Tower in Tehran.

"For the next 10 years, we must create homes for 29 million people … Research and data currently tell us that we will need about 5.3 million homes for the newlyweds in the next 10 years," he was quoted as saying by the MRUD news portal.

As Mazaherian noted at the event, the latest census showed 24 million households are residing in the country, while Iran has 27 million homes, although 2.6 million of them are vacant and 2.1 million are second homes used occasionally during the year.

The fact that 19 million people are living in poor housing conditions even as millions of homes are empty is indicative of an acute "lack of balance" in the housing market, the deputy minister added.

In addition to the new homes, Mazaherian said about 3.8 million residential units must be reinforced which, presuming a 5.4% economic growth rate and a 2% population growth rate, will bring the grand total of homes needed to more than nine million by the end of the fiscal 2026-27.

He predicted that about half –1.3 million–of all the empty homes that are mostly luxurious units beyond the purchasing power of a majority of people will also be occupied by that time, proving helpful to the total housing requirements of the country.

The official said Iran has a whopping 140,000 hectares in distressed urban areas, which is twice the size of the capital Tehran and presents a threat, as it plays host to about 30% of the country's total population and also indicates an opportunity for investment.

"The target set by the parliament for the ministry is to renovate half of all distressed areas by the end of the Sixth Five-Year Development Plan in 2022, which is a significant number and requires a budget of 1.23 quadrillion rials ($28.27 billion)," he added.

Mazaherian hailed the private sector's investment of about 600 trillion rials ($13.7 billion) in the housing sector, but said major builders strictly engage in housing construction while the ministry envisions the improvement of the overall housing quality in neighborhoods.

Improving Standards

Abbas Akhoundi, the two-term minister of roads and urban development, also addressed the event and mostly focused on ways of improving the professional standing of the civil engineering system.

He called for stronger supervision over civil engineers, which will lead to better quality buildings, and proposed that insurance companies take charge of guaranteeing the work and responsibility of engineers.

At present, civil engineers are required to gather dozens of signatures from peers that will act as the seal of approval on their work, a process which Akhoundi referred to as a "faulty cycle" that will certainly "fail to yield high-quality products".

Ahmad Khorram, the head of Tehran Association of Builders, was the other major figure addressing the audience at the landmark Milad Tower.

Referring to the current condition of Iranian housing market, the official said data show that home prices increased by about 10% for two consecutive months, which also created a momentum in the number of home sales, but the market has turned stagnant yet again.

"The liquidity in the country stands at around 14 quadrillion rials ($321.8 billion) while only 300 trillion rials ($6.89 billion) have been allocated to the housing sector," he said, stressing that the housing sector cannot be stimulated with this figure.

Khorram, therefore, called on the government to take care of dilapidated buildings and housing sector by allocating more suitable facilities with lower rates.

Majlis Research Center, the in-house think tank of the parliament, has found that the 2018-19 budget bill showcases the same yearly weaknesses as its predicted measures and sources of credit cannot meet the needs of the sector and will be unable to resolve its challenges.

 

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blueprint of Islamic banking has been devised by the Monetary and Banking Research Institute at the request of the Central Bank of Iran Governor Valiollah Seif. The blueprint has been drafted “with the aim of extending the banking system’s compliance with Sharia [Islamic law]”, Ali Divandari, the institute’s head, who announced the news at a meeting with the chief executive of Qarzol-Hasaneh Mehr Iran Bank, MBRI’s official news portal reported. The bank signed three agreements with the research institute for boosting Islamic banking efforts. The qarzol-hasaneh bank was founded 10 years ago with the aim of becoming the first Iranian bank specializing in interest-free, Sharia-compliant micro-banking, capital management and lending.   

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  • 3 weeks later...

This was posted by Yota in the regular Forum and not by me but felt it should be here as well.

 

     pp

 

 

Iran / Iran date: 2018 Jan / Canon the second 21 - GMT 12:02
 
 
 

The Iranian currency has continued its downward trend against foreign currencies, especially the dollar, the euro, the pound and the Chinese yuan since the birth of Christmas, and the start of the countdown to the start of the new Iranian year (March 21).

During the period December to March, there is usually a rise in foreign exchange rates against the riyal as domestic demand for foreign travel increases and local companies settle their accounts at the end of the Iranian year (ending March 20).

The price of the US dollar in the free market reached about 46 thousand riyals on Sunday, while the official price offered in the bids of the Central Bank of Iran to cover transactions and imports more than 36.6 thousand riyals now.

Commenting on this, Central Bank Governor, Leila Saif, in a tweet on the social network "Twitter" two days ago, that the exchange rates will decline during the months of "Bahman" and "Esfand" Iranians, the period of January 21 - 20 March 2018 , Apparently referring to the central bank's intervention in the market balance by injecting more foreign exchange to curb growing demand.

However, other factors are attributed to the decline in the riyal currency, including the US economic pressure, which violates the nuclear agreement between Iran and the international 5 + 1 group. Observers believe that the extension of the US president's decision to freeze the embargo against Iran for another four months is conditional on amending the agreement, "Catastrophic flaws" and hinting that the extension would be the last if the agreement is not changed, has overshadowed the pace of foreign investment influx into Iran and prompted investors to hedge in this regard.

In addition, observers believe that the attempt to stabilize the national currency in the past five years in order to reduce the rate of inflation to a single number of factors that have severely affected foreign investment in the post-embargo phase.

On the other hand, the deputy chairman of the Iran-China Chamber of Commerce said Saturday that the International Financial Action Task Force (FATF) has continued to put pressure on the accounts of Iranian traders in China, whose trade with Iran reached 32 billion dollars in the first 11 months of the year. 2017, where VATV is due to make its decision on Iran in the coming weeks after it temporarily suspended it under the nuclear deal from a list of countries with "worrying" financial deals.

China is an important source of foreign currency to Iran. Exports of non-oil goods reached 6.1 billion dollars in the 11 months, as well as imports of about 25 percent of Iranian oil during this period, where observers saw that the pressures of the International Financial Action Group may affect the flow of flow These assets, as well as their hindrance to foreign investments, but this situation will be temporary as the "VATV" to make its decision on lifting Iran from the banned list in the next three weeks.

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9 minutes ago, pokerplayer said:

This was posted by Yota in the regular Forum and not by me but felt it should be here as well.

 

     pp

 

 

Iran / Iran date: 2018 Jan / Canon the second 21 - GMT 12:02
 
 
 

The Iranian currency has continued its downward trend against foreign currencies, especially the dollar, the euro, the pound and the Chinese yuan since the birth of Christmas, and the start of the countdown to the start of the new Iranian year (March 21).

During the period December to March, there is usually a rise in foreign exchange rates against the riyal as domestic demand for foreign travel increases and local companies settle their accounts at the end of the Iranian year (ending March 20).

The price of the US dollar in the free market reached about 46 thousand riyals on Sunday, while the official price offered in the bids of the Central Bank of Iran to cover transactions and imports more than 36.6 thousand riyals now.

Commenting on this, Central Bank Governor, Leila Saif, in a tweet on the social network "Twitter" two days ago, that the exchange rates will decline during the months of "Bahman" and "Esfand" Iranians, the period of January 21 - 20 March 2018 , Apparently referring to the central bank's intervention in the market balance by injecting more foreign exchange to curb growing demand.

However, other factors are attributed to the decline in the riyal currency, including the US economic pressure, which violates the nuclear agreement between Iran and the international 5 + 1 group. Observers believe that the extension of the US president's decision to freeze the embargo against Iran for another four months is conditional on amending the agreement, "Catastrophic flaws" and hinting that the extension would be the last if the agreement is not changed, has overshadowed the pace of foreign investment influx into Iran and prompted investors to hedge in this regard.

In addition, observers believe that the attempt to stabilize the national currency in the past five years in order to reduce the rate of inflation to a single number of factors that have severely affected foreign investment in the post-embargo phase.

On the other hand, the deputy chairman of the Iran-China Chamber of Commerce said Saturday that the International Financial Action Task Force (FATF) has continued to put pressure on the accounts of Iranian traders in China, whose trade with Iran reached 32 billion dollars in the first 11 months of the year. 2017, where VATV is due to make its decision on Iran in the coming weeks after it temporarily suspended it under the nuclear deal from a list of countries with "worrying" financial deals.

China is an important source of foreign currency to Iran. Exports of non-oil goods reached 6.1 billion dollars in the 11 months, as well as imports of about 25 percent of Iranian oil during this period, where observers saw that the pressures of the International Financial Action Group may affect the flow of flow These assets, as well as their hindrance to foreign investments, but this situation will be temporary as the "VATV" to make its decision on lifting Iran from the banned list in the next three weeks.

 

Iran, the sleeping Monetary giant. 

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Some questions...how do,you stop Currency fluctuations when you have two rates? Who said they will move to a single unified rate by March?whi said supplementary budget is based on single unified rate. What’s in the photos? Why a currency board? Which currencies are listed? Which ones are not? Why after four years are they rushing and have passed important aml/ctf laws? Deadline jan 31...

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On 28/01/2018 at 2:52 PM, screwball said:

 

CBI governor, Swiss envoy to Tehran confer on banking ties

ولی الله سیف
News ID: 4213605 - Mon 29 January 2018 - 16:34
TEHRAN, Jan. 29 (MNA) – Seif, the governor CBI, told the Swiss envoy to Iran Leitner that Iran-Switzerland banking relations are satisfactory and called for speeding up the permission process for letting Iranian banks open branches in Switzerland.

“Iranian banks are functioning in the framework set by international regulations and many long steps have been undertaken to meet global standards,” said the governor of Central Bank of Iran Valiollah Seif.

The Iranian official made the remarks on Monday while meeting with the Swiss Ambassador to Iran Markus Leitner.

“The program to improve the structure in Iranian banks, in terms of standardizing banking operations, observing the international regulations, and correcting the accounting and monitoring standards is underway,” recounted the official.

During the meeting, the Swiss ambassador to Tehran voiced his country’s willingness to expand banking relations between the two countries and also recounted that Switzerland is encouraging its banks to broaden their cooperation with Iranian banks. He described the meeting as a prelude to meeting this objective.

He also promised to negotiate with banking officials and Swiss banks to speed up issuing permissions for letting Iranian banks open branches in Switzerland.

 
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