Iranian Rial

[screwball]

Iran appears keen to start mining its substantial metals reserves 

Posted on 16:18, 04/02/2016 by OneStopBrokers

 

Iran Looking To Ramp Up More Than Just Oil Production

As the oil markets remain focused on the re-emergence of Iran as a major oil producer following the recent lifting of sanctions, another oversupply storm is brewing as the Islamic Republic appears keen to start mining its substantial metals reserves.

On January 17 Iran emerged from years of economic isolation as world powers lifted sanctions in return for curbs on its nuclear weapons ambitions. The controversial deal, stickhandled by U.S. President Obama, will free up tens of billions of assets and allow foreign firms to do business with a country once (and still by its enemies) considered an international pariah.

The addition of 500,000 barrels of oil a day could further depress the price of crude oil which is struggling to break through a resistance level in the low-$30s, although there have been rumblings lately that Iran may increase output more gradually than initially thought, in order to prevent adding downward pressure on prices.

Iran relies heavily on petrodollars for its foreign exchange; the drop in oil prices has hit its treasury especially hard, with losses in the billions. That has led President Hassan Rouhani and other members of his government to focus on non-oil exports, including minerals, which up to now have been underutilized.

According to various sources, including the U.S. and British Geological Surveys, Iran is among the top 15 minerals-rich countries, with over 700 billion tonnes of potential reserves – about 7 percent of the world’s total – worth over $700 billion. Among its mostly untapped deposits (less than a tenth of the country has been surveyed) containing 68 types of minerals, the most important are zinc, iron ore, coal, copper, lead, bauxite (aluminum) and uranium. There are an estimated 3,000 mines, which are around 90 percent state-owned. Iran is the fourth-biggest supplier of iron ore to China and has the world’s ninth largest reserves of copper at 32.5 million tonnes. The country is also a major Middle Eastern steel producer.

Yet despite its metal riches, mining has up to now contributed less than one percent to Iran’s gross domestic product. One of the biggest barriers is technology. Deprived of foreign investment due to sanctions, Iran has not been able to attract specialists in mineral extraction and processing, nor update its equipment. A lot of mining machinery in Iran is decades-old. Limited railway capacity, low volumes at mining facilities, and high interest rates are further brakes on industrial development.

However with the end of sanctions, foreign firms are lining up to capitalize on the potential. In September executives of Kobe Steel Ltd, Japan’s fourth-largest steelmaker, and state-run Japan, Oil, Gas and Metals National Corp (JOGMEC) met officials in Tehran to discuss cooperation in mining. The meeting was part of a plan to attract some $29 billion in foreign investment to the sector.

Last week, Iranian trade minister Mehdi Karbasian said the country hopes to finalize $5.4 billion in investment plans during President Rohani’s visit to Italy. Potential deals include investments in steel production in southern Iran.

While the lifting of sanctions could certainly lead to greater mining potential, in a way it couldn’t come at a worse time, with prices for most of the commodities hiding under Iranian soil at multi-year lows. The slump in iron ore prices in particular has killed off a significant amount of export tonnage, especially since so much Iranian ore goes to China, whose growth has slowed. Reuters reported in September that Iran’s iron ore exports fell by almost a half during the first eight months of 2015. To compete in the global iron ore market, Iran must be cost-competitive with the two largest and lowest-cost iron producers – Brazil and Australia.

On a volume basis, Iran has a long way to go. According to the International Steel Statistics Bureau, the country exported 22 million tonnes of iron ore in 2014, compared to top shipper Australia at 754 million tonnes.

But does Iran really want or need to compete? According to the Iron Ore Producers and Exporters Association of Iran (IROPEX), Iran’s iron ore shipments will likely drop from 15-16 million tonnes in 2015 to under 10 million tonnes by 2017, as it seeks to lift domestic steel output from 16 million tonnes in 2015 to 25 million tonnes in 2025. To reach that goal, Iran would need to bump up its iron ore production from 45 million tonnes in 2014 to 159 million tonnes. With those ambitious goals, will there be enough excess iron ore to export?

Unless there is an imminent bull market for metals again, which seems improbable given that most commentators consider the China-driven supercycle for commodities to be over, there is unlikely to be a dramatic impact on metals markets from Iran’s return to mining. This is especially true given the country’s desire to use its production of iron ore for domestic consumption in steelmaking.

On the other hand, the fact that Iran is now considered open for business will definitely pique the interest of foreign mining companies, both major and junior miners, to conduct exploration activities. As more mines are permitted, this could result in more business for mining equipment manufacturers and suppliers. Al-Monitor points out that efforts are being made to cut red tape by streamlining the permitting process into a “single window system” whereby potential investors do not have to go through different government bodies to obtain licenses.

The 2002 Foreign Investment Promotion and Investment Act gives foreigners ownership rights, the opportunity to transfer profits out of the country in foreign currencies and, importantly for international mining companies sensitive to political risk, “guarantees that the government will pay compensation for any investments in projects that are nationalized or expropriated,” according to Al-Monitor.

 

700 billion in reserves and only 1% of market share! 

[screwball]

It will be higher than 1:1 

[rw.sutton]

Iran enters credit cards for the first time

 

Iran enters credit cards for the first time

September 25, 2016 Walter

 

 

 

 

 

 

 

Rate This

 

 

 

Sun, 25 Sep 2016 20:50:59

 

 

# Algmehorah_uz

Iran informed sources said, told the Republic Auz “The Islamic Republic of Iran introduced credit cards for the first time and disease work out Btdae Sunday.”

Iran is seeking to increase oil production and to support its economy after world powers lifted sanctions imposed on the Islamic Republic in exchange for Tehran ‘scommitment to an agreement to reduce nuclear ambitions

.

He warned the governor of Iran ‘s central bank Waliullah sword that banks may take some time to get used to the credit card system.

The agency quoted Saif as saying : ” It would be wrong to think that those cards will be used rapidly in the banking network.”

The cards will go up to a maximum of three thousand and ten thousand and 15 thousand dollars and can be used in the purchase of the stores or online

[jaman]

4 hours ago, screwball said:

All these article pointing to iran and the Silk Road? China? Yuan?

all we need now is the finance side so the BANKS can play with us

[millionaire in training]

3 hours ago, screwball said:

It will be higher than 1:1 

If it comes in at 1-1 that alone will be mind blowing.     This is unbelievable     ....... wow......could we be dreaming ?    

[millionaire in training]

31 minutes ago, jaman said:

all we need now is the finance side so the BANKS can play with us

Yes Jaman....and they will. You'll see.  Everyone's gonna want to play with us.

[Freedomwish]

5 hours ago, screwball said:

It will be higher than 1:1 

2 hours ago, millionaire in training said:

If it comes in at 1-1 that alone will be mind blowing.     This is unbelievable     ....... wow......could we be dreaming ?    

Does having a few whiskey drinks at happy hour on a Monday evening makes me look too crazy?

BECAUSE THAT'S WHAT I'LL BE DOING FOR HAPPY HOUR TONIGHT!! 

KEEPING THE FAAAAAAAAAAAAAAAAITH!! 

[pokerplayer]

Totally agree my friend !! I will have a whisky drink after dinner and think about you. I know we will see each other soon.

Peace out, pp

[Freedomwish]

1 minute ago, pokerplayer said:

Totally agree my friend !! I will have a whisky drink after dinner and think about you. I know we will see each other soon.

Peace out, pp

CHEERS INDEED PP!!

CHEERS INDEEEEEEEEEEED!!! 

[screwball]

2016

EU Pressures US on JCPOA

 

The European Union has joined Iran’s call on the United States to begin to fully comply with the 2015 nuclear deal, said the chief of staff of President Hassan Rouhani.

“Our negotiation team pursued Iran’s complaint of the US non-compliance in meetings between foreign ministers and their deputies. We decided to formally raise the complaint. The Europeans went along with our decision,” Mohammad Nahavandian was quoted as saying by IRNA on Sunday.

“This is one of our achievements. Europeans are also criticizing the US uncooperative stance.”   

The landmark agreement, formally known as the Joint Comprehensive Plan of Action, was the outcome of about two years of negotiations between Iran and the six world powers, namely the US, Britain, France, China and Russia plus Germany.

It took effect on January 16 to grant Tehran sanctions relief in return for scaling back its nuclear program.

Top diplomats from parties to the accord convened the first Joint Commission meeting at the ministerial level on September 22 in New York on the sidelines of the annual session of the UN General Assembly to discuss how to facilitate the action plan’s implementation.

The political directors and deputy foreign ministers also held talks a day earlier. The commission is a panel of representatives from all JCPOA participants tasked under the pact to monitor it and address issues related to its implementation.

Iran acceded to nuclear curbs under the action plan in the hope that it could revitalize its sanctions-hit economy by luring overseas businesses.

However, residual American restrictions that involve a ban on the use of dollar in Iran-linked transactions and processing such transactions through the US financial system have deterred oversees banks and investors from engaging with Iranian counterparts. Tehran has complained that Washington had not done enough to reassure anxious businesses and address their understandable concerns.

It has sought European leverage to pressure American policy- and decision-makers.

[screwball]

When Steve Ciobo heads to Iran on Tuesday, it will mark the first time an Australian trade minister has been there in almost 15 years on official business.

When United Nations trade sanctions took their hold over Iran’s nuclear program, Iran’s economy was crippled and Australian exports were also hit hard, Australian Associated Press reported.

What was once an almost $1 billion export route tumbled to a few hundred million in the space of a decade.

Now with the easing of those sanctions, Canberra is keen to get back on that mission, essentially saying, “Where were we?”

Leading a delegation of more than 20 representatives from Australian companies, including WorleyParsons and Qantas, the minister will open the government’s new Austrade office in Tehran and meet Iranian government counterparts.

“I’m leading this delegation to open doors and to explore the Iranian commercial terrain-that’s about creating a pathway for Australia businesses to engage,” Ciobo said.

It’s obvious why Australia is so keen to get back on track.

  Hitting the Jackpot

For companies selling mining equipment and expertise, Iran is the jackpot: 7% of the world’s mineral resources are located there and with operations in arid and isolated regions not dissimilar to Australia.

Iran also holds some of the world’s biggest oil and gas reserves and wants to boost those exports.

And with its population of over 80 million, education, food, healthcare and water sustainability are lucrative areas for Aussie firms.

Ciobo describes it as an exploratory mission.

“Now that the relationship is moving toward being on the right track, there is of course significant potential there,” he said.

Australia isn’t the only one to find a business bonanza.

The minister believes competition will be strong among other countries keen to make inroads into the once-economically isolated nation, including the US and UK.

But it’s thanks to a historically strong trade relationship that Canberra has maintained, including keeping an embassy open amid decades of political tension, that he’s confident Aussie firms will be well positioned.

  Austrade Office Shows Australia Means Business

For exporters, the Austrade office is important because it shows Australia is serious about doing business in Iran.

It also helps companies feel more comfortable in an economically sensitive environment, as Iran gradually opens for business.

Since some US sanctions are still in place, Australian firms face considerable risks and restrictions from the use of credit cards to other financial issues.

Ciobo said while the government is keen to set up and help make inroads for the private sector, it’s up to businesses to weigh up the risks.

“Fundamentally it’s their choice to decide whether to come to Iran or not ... whether or not Iran will present the kind of opportunity they’re looking for,” he added.

“There is potential but there is still challenge. For Australian businesses, it will be an opportunity to identify where the rewards lie and where the risks lay.”

And of course, there is also the sticky subject of asylum seekers, some 8,000 of which Iran won’t accept unless they go back willingly.

Ciobo expects the topic to come up during his formal talks.

  Recent Upsurge in Bilateral Trade

According to the Islamic Republic of Iran Customs Administration, Iran exported $30.3 million worth of goods to Australia in the last Iranian fiscal year (March 2015-16), registering a 16% increase compared to the year before. Imports stood at over $39.8 million, down 74%.

IRICA’s latest stats on bilateral trade pertain to the first four months of the current Iranian year (started March 20), during which period Iran exported more than 12,000 tons of non-oil goods worth $20 million to Australia, registering a 184% upsurge in value; and imported  4,100 tons worth $9.7 million to record a 111% jump year-on-year.

Copper, paraffin wax, stone, carpet, dates, pistachio, raisin and saffron were among the main exports. Imports mainly included pharmaceuticals, medical equipment, ceramics, wood, machinery and paper.

Share This :

Short URL : https://goo.gl/W3Z0Ef

[screwball]

I guarantee heads of banking corporations will be there ready to go once assurances are given...

[screwball]

Come on australia bring this baby home for us!

Edited September 26, 2016 by screwball

[screwball]

9 hours ago, millionaire in training said:

If it comes in at 1-1 that alone will be mind blowing.     This is unbelievable     ....... wow......could we be dreaming ?    

I have Ben dreaming for years then! Been in this rial investment a long time as well!

[screwball]

The Central Bank of Iran is devising a set of rules to let foreign nationals use credit cards offered by Iranian banks on Thursday, a senior official of the bank said.

"At present, individuals living outside Iran's borders cannot use these cards but as part of a rulebook being developed in the CBI, international cards can become available to foreigners," Farshad Heidari, CBI’s deputy for supervisory affairs, was quoted as saying by Mehr News Agency during a press conference on Monday.  

He added that the plan would also allow non-Iranians to open bank accounts with Iranian banks.

The announcement follows CBI’s scheme to offer credit cards on a large scale inside the country, which was kicked off last week. Three types of credit cards are being offered, with a credit cap ranging from 100 million rials ($2,800) to 500 million rials ($14,000).

Based on the scheme, cardholders will not be charged any interest if they clear their debts within a month, otherwise they will be given 12-36 months to settle their debts at a lending rate of 18%.

Credit Cards Framework

The central banker elaborated on the newly-unveiled scheme, saying that “the CBI aims to provide all citizens with microcredit”.

“All the banks are basically obliged to provide the public with microloans,” he said, noting that banks will have to report the status of micro-finance to CBI on a continual basis.

The credit card scheme is expected to replace the thorny and often dysfunctional process of obtaining small loans from the banking sector. Banks pay a considerable amount of loans each year.  However, small loans account for a meager portion of the total lending.

 “Lenders are expected to participate in the credit card plan, as much as their resources allow them,” he said. “They would receive negative scores, if they fail to meet [CBI’s] stipulations.”

Bankers, reportedly, have been less than enthusiastic about the scheme–an apathy that has taken few analysts by surprise given the dire conditions of many banks.

Except for the state-owned Bank Melli Iran that issued 20,000 credit cards on Sunday and the private Ayandeh Bank, a handful of other banks surveyed by the Financial Tribune said they had not received the relevant guidelines yet.

Fines for Violators

Heidari announced that the CBI has employed meticulous supervisory tools to minimize the illicit usage of credit cards by cardholders and salespeople.

“Using POS terminals for withdrawing cash from credit cards will be recorded as a negative point in the cardholder's credit history,” he said.

“This would not only affect their creditworthiness, but would also lead to heavy fines."

However, he noted that the CBI has employed measures to reduce the need for withdrawing cash from the cards, as “they can be used for purchasing any type of goods or services, including foreign products in the country”.

The central banker said lenders are not permitted to force applicants to initiate a deposit to become eligible for the card.

“Issuing cards for bank employees is also prohibited,” he said.

Depositing a specific amount of money with a bank for a year has been the common method employed in Iran’s banking system in recent years for issuing credit cards to customers.

Before the recent scheme kicked off, Iranian banks issued credit cards, debit cards and gift cards, though the first type was not commonly used, as it was limited to VIP customers.

According to Shaparak (the nationwide payment network company), banks issued 330 million cards in the last Iranian year (ended March 20), 1.6 million of which were credit cards.

Share This :

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

[screwball]

Abe Vows to Accelerate Economic Recovery

 

Japanese Prime Minister Shinzo Abe pledged Monday to accelerate his mix of policies to prop up Japan’s economic recovery and speed up parliamentary approval of the Trans-Pacific Partnership trade pact.

In his policy statement opening the 66-day parliamentary session, Abe outlined an extra set of stimulus measures to help the economic recovery and spur more consumer and corporate spending. He aims to push through a supplementary budget within weeks to implement the measures in the package, which is worth 28 trillion yen ($2.8 billion), AP reported.

Abe reiterated that the global economy faces “major risks” such as uncertainty over Britain’s exit from the European Union and the slowdown of emerging economies including China, stressing the need to accelerate his Abenomics policy mix of fiscal stimulus and structural reforms.

“We’ll further accelerate Abenomics and maximize the pace of moving out of deflation,” he said.

Abe also said the TPP is a key part of his growth policies, though he did not set a specific deadline for parliamentary approval of the trade pact, apparently amid uncertainty ahead of the US presidential election in November. He only hinted at a timing of TPP approval sometime later this year.

“An early entry into force of the TPP will be a big chance and we will aim to quickly achieve a one trillion yen ($10 billion) target (of annual agricultural exports),” Abe said.

  Yen to Rise

Japan’s former top currency official Eisuke Sakakibara says the the nation’s central bank stimulus is nearing its limit, and the yen will gradually strengthen toward 90 per dollar next year, Bloomberg reported.

Japan’s currency gained the most since July last week, touching 100.10 on Thursday, the day after the Bank of Japan shifted policy toward targeting the shape of the sovereign yield curve instead of money-supply expansion, while leaving the negative deposit rate and scale of asset purchases unchanged.

The yen could break 100 “at any time,” and may “immediately” strengthen as far as 95, according to Sakakibara, who was dubbed “Mr. Yen” for his ability to influence the exchange rate while a senior ministry of finance bureaucrat in the 1990s.

“The yen would probably have a slow appreciation, so that I would not be surprised to see dollar at 90 yen at the end of next year,” the 75-year-old, who is now a professor at Aoyama Gakuin University, said in an interview Monday.

 

[screwball]

This is my next investment.....HSBC yen account if possible...

[screwball]

Economy

TEHRAN, Sep. 26 (MNA) – A PMO official announced that 14 international shipping lines have resumed activities in Iranian ports while eight more liners are eager to return to Iran.

Deputy Managing Director for Port Affairs of the Ports and Maritime Organization (PMO) Jalil Eslami pointed to willingness of giant shipping lines to establish presence in Iranian ports saying “a total of 22 international liners were active in Iran before sanctions were imposed while 14 of them have resumed their activities in recent months and eight more have voiced readiness to do so.”

The official went on to add that international shipping companies halted their interaction with Iranian ports once sanctions were enforced though ground are prepared now for their return given that sanctions have ended.

“Currently, the 14 international shipping lines attach great importance to Shahid Rejaei and Bandar Abbas ports,” he continued.

Eslami underscored that presence of international liners in Iranian ports will provide exporters and importers with a wider variety of options as well as assisting them to trade goods with more reasonable prices in a competitive atmosphere.

“A further advantage is the alleviation of the need to transfer Iranian goods to ports of neighboring states which would lead to a reduction of extra costs.”

The PMO deputy managing director said the activity of foreign shipping lines gives credit the country for indicating that Iran is a safe place which offers proper trade conditions.

Jalil Eslami, however, called for creation of necessary business infrastructure as a way to attract more shipping lines as well as to boost their eagerness.

“Quite a number the international shipping lines present in Iranian ports are world’s high-ranking liners including Mediterranean Shipping Company S.A. (MSC) and Evergreen Line.

 

HA/3779068

[screwball]

Australia to reopen trade office in Iran

News ID: 3779375 - Mon 26 September 2016 - 13:27

Economy

TEHRAN, Sep. 26 (MNA) – The Federal Government has announced it will reopen a trade office in Iran ahead of Trade Minister Steve Ciobo's visit to Tehran this week, Australian ABC News report said.

A business delegation led by Mr Ciobo is expected to discuss rebuilding trade ties between Australia and Iran after a very long hiatus. Mr Ciobo said Iran offered significant economic opportunities for Australia. "There are significant trade opportunities as Iran re-engages with the world following the easing of sanctions," he told ABC News breakfast.

"There's opportunity in a myriad of areas, from agribusiness and food through to education, training and water management and not to mention the fact that we, of course, have a really strong and powerful track record in relation to resources and energy — something that is in abundance in Iran as well."

Iran emerged from years of economic isolation when world powers lifted crippling sanctions against the Islamic Republic in January in return for Tehran complying with a deal to curb its nuclear ambitions. The deal also released billions of dollars worth of frozen Iranian assets and opened the door for global companies that have been barred from doing business in Iran.

SH/PR

FacebookTwitterGoogle+Share

 

Short URL 

 

Tags

• Australia
•  
• Business Delegation
•  
• Iran
•  
• JCPOA
•  
• Trade

Comment

*Name

Email or Website

*Your Comment

•  

*Please enter the correct answer 

9 + 8 =

 

[screwball]

Iran’s inflation rate stands at 8.8%

News ID: 3779346 - Mon 26 September 2016 - 17:27

Economy

TEHRAN, Sep. 26 (MNA) – CBI has announced that Iran’s inflation rate reached 8.8 per cent in the 12-month period leading to the previous Iranian calendar month (ended September 21).

On the basis of the report published today by the Central Bank of Iran (CBI), price index of consumer goods and services in urban areas stood at 247.1 in the previous Iranian month (August 22 to September 21) indicating a 0.7% rise as compared to the earlier month.

Price indices for clothing and footwear, healthcare, communication and education increased by 0.5, 1.7, 0.2 and 0.4 per cent in the previous month as compared to the earlier 30-day period.

Vice President and Head of Plan and Budget Organization Mohammad Bagher Nobakht said earlier on August 22 that annual inflation by the fifth Iranian month (ended August 21) stood at 8.7 percent indicating a 0.3-percent decrease as compared with the earlier month.

He had noted that the monthly rate of inflation in the fifth month of current Iranian calendar year (spanning Jul. 22-Aug. 21) was calculated at 1.4 per cent while the figure was 1.6 for one month earlier.

The official also said the point-to-point inflation rate in the previous Iranian month stood at 7.4 per cent while figure for the preceding month was 6.5 per cent.

Nobakht underlined that the government is determined to continue with the policy of controlling inflation and lowering the price of goods and commodities.

 

HA/3778845

 

FacebookTwitterGoogle+Share

 

Short URL 

 

Related News

• Leader urges precise figures in census
• Iran’s non-oil exports up by 20%
• Annual inflation rate stands at 8.7%

Tags

• CBI
•  
• Inflation
•  
• Iran Vice President
•  
• Iran's Government

Comment

*Name

Email or Website

*Your Comment

•  

*Please enter the correct answer 

2 + 6 =

 

[screwball]

They can move those inflationary zeros off their exchange rate now would be nice!

[pokerplayer]

I agree SB, lets get this done so we can retire in style !!

pp

[screwball]

1 minute ago, pokerplayer said:

I agree SB, lets get this done so we can retire in style !!

pp

Retire but not out of the currency game, I have one other to invest in....

[screwball]

HsbC multi urgency accounts are the go, sit it in there earn interest and let it roll..

[pokerplayer]

1 minute ago, screwball said:

Retire but not out of the currency game, I have one other to invest in....

All I have after the Riel is the Dong and of course the Dinar. bought some Icelandic Krona on a hunch, but it remains to be seen.

pp