Iranian Rial

[blueskyline]

23 minutes ago, millionaire in training said:

This doesn't say a thing to me.    ......Lots of words ....but not much of a point .....  maybe its just me    What does this say to you ?

Other than improving transparency to what they are doing. ? . ? . ?

Banking , Monetary ,Monetary Market and Credit Reforms with improved Transparency .

[screwball]

regularize the informal money market in order to improve transparency

move to single rate? Informal money market? Can only do this with a unified single rate!

[screwball]

Iranian banks must commit to increasing their capital and reaching a capital adequacy ratio of at least 8%, says a deputy economy minister.

"A minimum capital adequacy of 8% and reaching a capital adequacy of 12% must be pursued by the banks," Hossein Qazavi was quoted as saying by banker.ir.

"Privately-owned banks must improve their capital adequacy by selling their stocks and increasing the capital of state-owned banks should be the function of the government."

The deputy economy minister for banking and insurance affairs says budgetary constraints have indeed imperiled government moves to help increase the capital of banks. "But I hope that amendments to the budget law of 2016-17 which were approved by parliament will be implemented and capital adequacy of the banks will increase."

The amendments to the budget law of 2016-17, the implementation of which was officially proposed by President Hassan Rouhani in early November, contain measures to increase banks' capital and settle their debts.

According to another deputy minister of economy Shapour Mohammadi, the government has several plans to increase the capital adequacy of banks including cash injections with the help of foreign exchange resources of the Central Bank of Iran.

"It was proposed that proceeds from selling the shares of state companies could be utilized based on Article 44 of the Islamic Republic of Iran Constitution [which calls for the privatization of state firms]. These proceeds may be used to increase the capital of state banks which has won Majlis approval,” Mohammadi had said in June.

According to Qazavi, there is also the issue of several privately-owned banks in which the government holds a stake. If these banks choose to offer their stocks, he says, it should be "natural for the government to help in increasing their capital."

The official says in light of budgetary limitations, it seems that the government is willing to reduce its role in banks and let the capital market play its role in increasing their capital.

The main purpose of the amendments to the 2016-17 budget law is to allow the government to settle its debts to the banking sector by using the CBI foreign exchange resources. The government will have the authority to repay up to 450 trillion rials ($14 billion) of its debts to lenders through these resources.

Qazavi notes that when international banks want to collaborate with their Iranian peers, they look into their financial ratios, namely capital adequacy, non-performing loans, return on assets and stocks.

He, however, stresses that when a bank or country wishes to work with Iran on a large scale it should gauge the country within the framework of its extraordinary circumstances. He quickly adds that this does not mean the capital adequacy ratios of Iranian banks must not improve.

"This is a necessity. But in general, hurdles must be removed by way of improving or reforming the structure of bank's financial statements and giving the other side (foreign banks) the necessary assurances."  

Qazavi adds that in the case of government-owned banks, foreign banks can be swayed even if the bank's capital adequacy is below 8% because the government would be its stockholder "and if problems arise, they know that the government is there to help the bank(s)."

Production Loans Lagging

A deputy minister of industries, mining and trade has criticized the banks' performance in allocating loans to promote production in the country.

"Unfortunately, even though 90 cases were sent to private banks to receive loans to improve production, the banks have paid no attention," Reza Rahmani said in the 62nd meeting of the government and the private sector.

Pointing to the CBI governor Valiollah Seif's promise of delivering 16 trillion rials ($499.4 million) worth of loans to the ailing small and medium-sized enterprises (SMEs), the official said "so far, only 11 trillion rials ($343.3 million) has been paid to 16,194 industrial units."

Rahmani recalled that the CBI head had promised that "if any SME does not get the funding by the time the 16 trillion rials has been paid out, the volume of loans will increase."

Topics

Banks in IranReintegration

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[climber7]

NOT GOOD

 

Hope Iraq and Iran don't do this 

 

http://theantimedia.org/indian-eliminated-80-percent-cash/

[climber7]

House votes obamas Iran deal down 

 

http://www.allenbwest.com/allen/boom-house-votes-419-1-defy-obama 

[screwball]

Hmmmm.iraq removing three zeros and returning to former glory and iran removing for zeros and wanting their currency to be worth their real? Iraq starting jan 2017 and iran by March 20! Sounds like a coordinated effort!

[screwball]

15 hours ago, climber7 said:

NOT GOOD

 

Hope Iraq and Iran don't do this 

 

http://theantimedia.org/indian-eliminated-80-percent-cash/

Anything is possible....

[screwball]

Like I,said we know what we know because they tell us, it's what they don't tell us is the problem..

[millionaire in training]

Well I guess we'll have to find somewhere else to cash out then.    Unless Trump makes some kind of compromise deal with Iran.  

[screwball]

Quote

 

Central Bank of Iran official says rather than focusing on the reaction to the US election, the central bank must “implement good and consistent policies” and work to make Iran’s economy “resilient to shocks."

He added Iran expects to see "more rationality" on the part of Donald Trump once he assumes the role of US president and leaves behind what was merely campaign rhetoric.

At a conference in Frankfurt, other Iranian bankers also said they did not expect long-term adverse effects from Trump's win, even though he ran for president opposing a landmark nuclear deal the United States signed last year with Iran.

"What has been said during the election (campaign) was for the election competition. We expect to see more rationality on the position that Trump is going to take after becoming president," Central Bank of Iran Deputy Governor Peyman Ghorbani told Reuters on the sidelines of the conference.

[millionaire in training]

4 minutes ago, screwball said:

Hmmmm.iraq removing three zeros and returning to former glory and iran removing for zeros and wanting their currency to be worth their real? Iraq starting jan 2017 and iran by March 20! Sounds like a coordinated effort!

We'll see this earlier than Jan 2017.   2016 !

[screwball]

The role of the Asian Infrastructure Investment Bank (AIIB) in Iranian economic projects was discussed in a meeting between the president of the China-based bank and the minister of roads and urban development.

Abbas Akhoundi who is in China at the head of a high-ranking delegation, met with AIIB President Jin Liqun late Tuesday, IRNA reported, with the latter expressing AIIB interest in funding Iranian development projects.

An international financial institution, the AIIB aims to support infrastructure development in the Asia-Pacific region. It was proposed by the government of China and consists of 57 member states or the so-called “founding members”.

The bank is widely regarded as a strong and emerging rival to western lenders, namely the International Monetary Fund and the World Bank, both headquartered in Washington. AIIB operates with a capital of $100 billion, equivalent to two-thirds of the capital of the Asian Development Bank and about half of the World Bank.

In his meeting with Jin, the minister outlined Iran’s plans to develop infrastructures in aviation, rail travel, roads and maritime industries and called for benefitting from the financial and credit resources of the Beijing-based bank.

“Iran has drawn up schemes in the aforementioned sectors and wants to implement them with the help of financial and lending institutions,” Akhoundi was quoted as saying by the state news agency.

According to the minister, BOT (build–operate–transfer) and BLT (build–lease–transfer) methods of finance are the preferred choices in financing the mega projects. In the former method a private company builds and operates a facility and when it is finished, transfers the ownership to the government. In the latter, the government leases the project for operation for a set period of time and at the end of the period and after the lease amount has been settled, the project’s rights are transferred to the government.

Along with 26 other initial founding member states, Iran signed the constitution for the bank on June 29 in Beijing and currently holds 15,808 shares, or 1.61% of all the shares, granting the country 1.63% of the bank’s total votes.

  AIIB’s Plans

Akhoundi and his entourage were keen to learn more about the activities and goals of the development lending institution which specializes in infrastructure projects.

“Iran is a founding member of the bank and that carries much weight with the AIIB,” said Jin.

He noted that after prioritized infrastructure projects in Iran are introduced and outlined to the bank, it will take action to finance them. The senior Chinese banker pointed to the possibility of bettering living conditions in distressed urban and suburban areas in Iran by way of improving the residential units – a proposition welcomed by the minister.

Iranian lawmakers approved the proposal of Iran’s membership in the AIIB in late August and President Hassan Rouhani enacted the law in early October. It is reported that strengthening relations with Asian powers through infrastructure development is Iran’s main goal for joining the bank. Akhoundi requested the Chinese executive to send a delegation from his bank to Tehran to witness the development projects at close range and discuss details of possible collaboration.

 

Topics

AIIB and IranRoads Minister in ChinaInfrastructural DevelopmentMinistry of Roads & Urban Development

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[screwball]

1 minute ago, millionaire in training said:

We'll see this earlier than Jan 2017.   2016 !

Yes I believe so I am excited for December!

[millionaire in training]

3 minutes ago, screwball said:

Central Bank of Iran official says rather than focusing on the reaction to the US election, the central bank must “implement good and consistent policies” and work to make Iran’s economy “resilient to shocks."

He added Iran expects to see "more rationality" on the part of Donald Trump once he assumes the role of US president and leaves behind what was merely campaign rhetoric.

At a conference in Frankfurt, other Iranian bankers also said they did not expect long-term adverse effects from Trump's win, even though he ran for president opposing a landmark nuclear deal the United States signed last year with Iran.

"What has been said during the election (campaign) was for the election competition. We expect to see more rationality on the position that Trump is going to take after becoming president," Central Bank of Iran Deputy Governor Peyman Ghorbani told Reuters on the sidelines of the conference.

Lets hope he can be "rational"

[millionaire in training]

2 minutes ago, screwball said:

Yes I believe so I am excited for December!

ME TOO........

[screwball]

The Cabinet recently approved a bill allowing it to take $1.5 billion from the National Development Fund of Iran for creating jobs in rural and nomadic areas.

The money from Iran’s sovereign wealth fund will be given out as loans for job creation, though details of the plan have not been released.

The bill now only requires parliamentary approval to go into effect.

Minister of Labor and Social Welfare Ali Rabiei recently wrote a letter to the Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei, informing him about the plan. Thus, its approval by the MPs is likely.

The Sunday Cabinet meeting was presided over by First Vice President Es’haq Jahangiri, in the Planning and Budget Organization’s report on the next fiscal year’s budget was reviewed.

The next Iranian year starts in March 2017 and the president usually takes the budget to parliament in December. This will be President Hassan Rouhani’s last budget as he is expected to prepare for reelection for a second term next summer.

Though no information about the budget has been released, we may expect a more tempered budget as the excitement of sanctions relief that propped up the hopes of government officials last year has dissipated.

Also, low oil prices will keep the role of taxes at the forefront as the main source of government revenue.

The Rouhani administration has weathered a huge storm. It inherited a shrinking economy with galloping inflation, which was under the most stringent sanctions regime.

Since his election, sanctions have been lifted, inflation has fallen from over 40% to under 10%, but growth has not come strongly. Weak growth and high unemployment, especially among Iran’s young population, will hurt Rouhani’s reelection campaign, as conservative populists still have a strong base of supporters.

The Statistical Center of Iran put the unemployment rate in summer at 12.7%. The figure marks a 1.8% increase compared with last summer and a 0.5% rise compared with the previous quarter (March 20-June 20, 2016). The new data show 3.33 million Iranians were unemployed in Q2. It also shows 10.4% of men and 21.8% of women of ages 10 and above were jobless during the period.

According to SCI, the unemployment rate was 14.4% for urban areas and 7.9% for rural areas. In other words, joblessness was higher among women compared to men and among those living in urban areas than rural people. The youth unemployment rate, i.e. the proportion of the population between the ages of 15 and 29, stood at 26.7% in summer, registering a 3.3% rise compared with the same period of last year and a 1.8% increase over last quarter.

Given the precarious situation of government finances—its books are riddled with bad debt and deficit from large operational expenses—it is looking to NDFI, with its over $68 billion in assets, to help plug the budget deficit.

The NDFI was created in the 2000s to save up oil revenues to develop Iran and invest overseas for future generations. However, former president Mahmoud Ahmadinejad declined to increase the fund’s share of oil revenues, as he was obligated, and instead treated the fund as his piggy bank to fund profligate projects.

The Rouhani administration has not been much better for the fund. Due to falling petroleum revenues, which have traditionally made up the bulk of government earnings, NDFI’s coffers did not grow. However, the fund has been allowed to operate somewhat independently.

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[screwball]

This will go down to the wire!

The next Iranian year starts in March 2017 and the president usually takes the budget to parliament in December. This will be President Hassan Rouhani’s last budget as he is expected to prepare for reelection for a second term next summer.

 

they said budget will have new rate....how are they going to keep this a secret? Also waiting on them to release financial accounts will that be before rate change or after when they have rebalanced and moved a removed a few zeros? And isn't there two bills with monetary reform before parliament one already voted

[markb57]

35 minutes ago, millionaire in training said:

We'll see this earlier than Jan 2017.   2016 !

I like this but what did I miss for you to say this?

[millionaire in training]

23 minutes ago, markb57 said:

I like this but what did I miss for you to say this?

From all that Im reading from all over the place  ........ Iraq should be RVing sometime this year. Iran is waiting on Iraq to RV because they made a deal (a while back) that Iraq would go first ( leading the way so to speak ). Iran should be RVing "shortly" after..... And ....so will other currencies .  Sort of like a domino effect not leaving enough time for investors to double dip. They are ahead of the plan. So......if you are thinking of buying other currencies I wouldn't wait too long.( NOT PUMPING JUST SAYING) . If this should be the case (which makes sense) it won't give anyone enough time to cash out one currency to buy another. This is what Im understanding from what Im reading.....IMO  

[markb57]

Thanks MIT.

[screwball]

 

Iran overcame sanctions powerfully: President

Karaj, Alborz Prov. Nov 16, IRNA – The Iranian nation passed the sanctions era powerfully, President Hassan Rouhani said on Wednesday.

 

Speaking about the results of the Joint Comprehensive Plan of Action, he called joint manufacturing of cars in participation with international companies as one of the achievements.

Iran Khodro and Peugeot signed today a 400-million euro contract to produce three new cars in Iran, Rouhani added.

He said there are also other contracts between Iran's SAIPA and Citroen auto manufacturing companies.

The president said that change of presidents has no impact on the desire of Iranian nation, adding the as a result of Iran resistance, the same international body which had imposed sanctions on Iran, was convinced to remove them.

He hailed the solidarity and unity of Iranian people and said the Iranian nation passed the sanctions era powerfully.

Elsewhere in his remarks, he noted that Arbaeen pilgrimage demonstrates greatness of Muslims and Shias in the world public opinion.

The president voiced hope for connecting Iran and Iraq railways to facilitate people presence in the Arbaeen pilgrimage.

Arbaeen is a Shia Muslim religious observance that occurs forty days after the Day of Ashura. It commemorates martyrdom of Imam Hossein, the third Imam of Shia Muslims which falls on the 10th day of the month of Muharram, (Nov 20, this year). More than 2 million Shia Muslims from all over the world gather on this day in Karbala, Iraq to perform mourning ceremonies.

9191**1771

[screwball]

Banking relation with Iran is moving, says British law expert

London, Nov 16, IRNA - Sue Millar of Stephenson Harwood Law firm says British banks are generally very interested to re-establish connections with Iran and claim that there is a real movement happening in this area.

 

In an interview with IRNA in London, and commenting on her opinion about the current banking situation, Millar said, 'We act for the British Iranian banks and have been heavily involved in discussions with industries, the regulatory authority and the government about how to break the banking impasse.

The good news is that there is a real movement and it is well intended, but it is frustratingly slow.' 

On the reason why things are moving slow, she said, 'It is a combination of the architecture of the banking system in the UK which is different to the architecture to the banking system in Europe. 

Each bank has a direct clearing relationship in Europe, but here in the UK you clear through another bank and those are the banks tend to be large banks who have found themselves on the wrong side of very large penalties from the US. 

So they are naturally far more cautious than as warranted.'

Q. To a question if there is a prospect of normalization of banking system between Britain and Iran, the British expert said,' I think there is and it will happen. I am a long term optimist. I have said this and would say just wait another six months.

The banking industry in the UK are generally always very interested in Iran, but they want to be second or third in. They like to see what the other banks do first.

I think there are relatively simple steps that could be put in place to resolve this and I think that there is a political will to do so, but previously the UK government was looking for the commercial sector to fill the gap and now I think there is a grown realization that there might need to be some intervention.'

On the the impact of Brexit on trade with Iran, she said, 'It is a difficult question, but if the reality is that we are not going to have any deals with the EU and we are just going to be a trading partner like anyone else, it certainly is the case that the UK needs to find additional market. 

Brexit should act as an accelerator real trade with Iran.'

Asked if Donald Trump retreats from JCPOA, would Britain preserve its position, the British sepert said, 'I think so far as the JCPOA is concerned, the next president is irrelevant to JCPOA. By that, I mean that in order to tear up the JCPOA it has to be on the basis that Iran has breached the fundamentals of its obligation.

What the US or any other signatories cannot do is just to say I am walking away from their international obligation. I do not think that is going to happen. I think the JCPOA will hold and I do think that the next president is irrelevant to the question of the future of the JCPOA. 

*Sue Millar is a finance litigation specialist. She focuses on investment banking disputes, involving highly complex products and structures. Her expertise extends to commercial and private banking and trade finance disputes. 

1552**1771

[screwball]

 

Malaysian Minister: Free trade agreement talks with Iran underway

Kuala Lumpur, Nov 16, IRNA - Minister of International Trade and Industry of Malaysia Mustapa Mohamed said free trade talks with Iran are underway, announcing that Malaysia is seeking for developing trade relations with other countries.

 

Mustapa Mohamed emphasized that Malaysia enjoys free trade agreement with 13 countries at the moment. 

Speaking in an interview with a Malaysian media, Berita Daily, Mohamed said 'Malaysia would continue pursuing free trade agreements (FTA)'.

'We have one with Turkey and will talk to Iran. We don’t have one with US and three other countries, yet” he added.

'Malaysia would follow the template of the Trans Pacific Partnership Agreement (TPPA) in pushing for more trade opportunities with other countries' he said.

In the wake of President Hassan Rouhani's trip to Kuala Lumpur, Mustapa Mohamed heading an economic delegation from Malaysia had a trip to Tehran on October 21 to expand ties with Iran.

During his tour, Malaysian minister expressed willingness to boost trade ties with Iran in different fields, such as oil and gas, tourism, education and car industry.

9376**1771

[screwball]

AIIB president says keen to finance Iran's projects

Beijing, Nov 16, IRNA - Asian Infrastructure Investment Bank (AIIB) President Jin Liqun said this bank is ready to finance Iran's infrastructure projects.

 

He made the remarks in a meeting with visiting Minister of Roads and Urban Development Abbas Akhundi.

AIIB president referred to Iran's role in establishment of the AIIB and said this bank is ready to finance Iran's infrastructure projects.

AIIB is ready to help Iran to rebuild the decayed residential places, he added. 

During the meeting, the Iranian minister for his part expressed Iran's interest to use the AIIB finance for development of its infrastructure in various sectors of air, rail and road.

Iran prefers using the Build–operate–transfer (BOT) and BLT (Build–Lease–Transfer) forms of project financing to finance its projects, he added.

The official urged AIIB to dispatch a delegation to visit Iranian projects. 

Akhundi is in China for a four-day official visit to discuss cooperation between the two countries in the field of transportation. Heading a delegation, he arrived in Beijing on Sunday evening.

9191**1771

[screwball]

 

 

 

 

Code: 82309986 (5670490) | Date: 15/11/2016 | Time: 19:54|

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200 trade delegations visited Iran in post-JCPOA era

Abadan, Nov 15, IRNA – Some 200 trade delegations visited Iran after the implementation of the Joint Comprehensive Plan of Action (JCPOA) to develop trade and commerce with Iran, deputy head of Trade Development Organization for Arab-African affairs said on Tuesday.

 

Farzad Piltan told reporters on the sidelines of the Fourth Conference Commemorating Exemplary Exporters, Economic Activists and Exports Servants of Arvand Free Zone that JCPOA was certainly successful in removal of negative atmosphere in the field of trade and economy about Iran.

After the nuclear deal between Tehran and Group 5+1, most foreign countries developed interest to start negotiations with Iran and therefore, they dispatched trade teams to Iran, he said.

The official further noted that given the quality, price and competitiveness of the Iranian goods in the markets, over 200 trade delegations came to Iran seeking to promote commerce with Iran in the post-deal era and it happened as Iran's exports improved. 

Describing free zones as a bridge for promoting exports, he said that one of the major goals is to attract foreign investment and easy and inexpensive production for exports.

Arvand Free Zone is one of the successful examples to attract foreign investments, he said.
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• اقتصاد
• Iran
• Delegations
• JCPOA

Contact Editor-in-chief:  newsroom@irna.ir 
 

 

 

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