Iranian Rial

[screwball]

Russian 28-member oil executives team on way to Tehran

Moscow, Nov 16, IRNA – A delegation representing the largest Russian oil companies willing to attend a workshop on specifications of Iranian new oil contracts are on way to Tehran.

 

The delegation included directors of Russian energy companies such as Gazprom, Gazpromneft, Rosneft, Lukoil, Zarubezhneft, Tatneft and Storytransgaz.

Iran's Ambassador to Moscow told IRNA that organizing a workshop for Russian oil and gas companies was agreed in recent OPEC meeting in Algeria by the Iranian and Russian ministers of petroleum.

He said that following implementation of JCPOA and confirmation of new model of oil contracts by Majlis, the Russian oil and gas companies declared interest in willingness to take part in the workshop.

Three companies of Lukoil, Zarubezhneft and Tatneft have signed Memorandum of Understanding with National Iranian Oil Company (NIOC) and other Russian oil and gas companies are negotiating for investment in Iran's oil and gas fields .
1391**1416

[screwball]

 

Iran, Norway sign MoU on oil

Tehran, Nov 16, IRNA – National Iranian Oil Company (NIOC) and Norwegian company DNO signed Memorandum of Understanding (MoU) to launch exploration at Changoleh oilfield on Wednesday afternoon.

 

The MoU was signed by Deputy head of NIOC Development and Engineering Department Gholam Reza Manouchehri and Managing Director of DNO Company Bjorn Dale.

In the signing ceremony, Manouchehri said that Changoleh and Azar oilfields have common structure and hoped that the Norwegian partner would present its feasibility studies during six months.

He remembered good cooperation between NIOC and Norwegian Statoil Company and said that the MoU may lead to development of interaction between NIOC and DNO.

Bjorn Dale expressed pleasure with the opportunity to work with NIOC.

Given certainty for structural similarity of Changoleh and Azar oil fields, Changoleh in the framework of development operation by the new oil contracts has been given priority.

Changoleh oil field located in western province of Ilam 50 kilometers southeast of Mehran city 10 to 15 kilometers from Iran-Iraq comon border.  
1391**1416

[screwball]

Iran expects $12bn in foreign investments

Sun Nov 13, 2016 7:58AM

1. Home
2. Iran
3. Economy

Tehran Stock Market has seen a rise in foreign investments – specifically in Iran’s steel industry - over the past months. (Photo by IRNA)

A top Iranian trade official says the volume of foreign investments in the country is expected to increase by six times until next March to reach around $12 billion. 

Feriyal Mostofi, a member of Tehran Chamber of Commerce, told reporters that foreign investments in Iran for each Persian calendar year (starting 21 March) stood at about $2 billion. 

This year, however, it is expected to reach between $10 billion to $12 billion once the contracts that have been signed after 21 March are made operational, said Mostofi.

Based on figures released by the United Nations Conference on Trade and Development (UNCTAD), Iran attracted $2.05 billion and $2.10 billion in 2015 and 2014. 

Iran had been off limits to global investors as a result of US-led sanctions that banned major investments in the country, specifically in its oil and gas industries that provide the lifeline of its national revenues.

The sanctions were removed in January after a landmark nuclear deal between Iran and the so-called P5+1 – the five permanent members of the Security Council plus Germany – came into effect. This paved the way for new investments in Iran. However, global businesses – and specifically major banks – are still concerned about the impacts of the US primary sanctions against Iran and have so far shown a lukewarm welcome to the country’s investment opportunities.  

On the same front, Mostofi emphasized that major European banks were still failing to proceed major Iranian trade proceedings, adding that Iran can currently open letters of credit (L/Cs) for small volumes of transactions below €50 million. 

Insurance companies, Mostofi said, were more cooperative in working with Iranian businesses. 

Mohammad Atabak, another member of Tehran Chamber of Commerce, told Iran’s state news agency IRNA that there has been a strong interest by European companies in the country’s steel industry. 

“There has been a significant increase in the number of European companies that have been approaching their Iranian counterparts to purchase steel and also buy the shares of Iran’s steel companies,” said Atabak.      

Iran is the world’s fourth biggest steel producer with a total production capacity of 24 million tons per year. The country has devised serious plans to increase its steel production capacity to as high as 55 million tons per year before 2025.  

[screwball]

Opinion piece but let's see whose being paying attention

 

Service: Iran

 

 

When to lop zeros off rial

By Pouya Jabalameli

Recently, a number of economic experts have commented on the need to remove three zeros from the national currency, the rial.

Zeros can be lopped off the rial when certain criteria are met. The most important criterion pertains to combating inflation and creating a sustainable inflationary situation. In addition, the introduction of new currency notes and coins as well as reforms in the country's financial system and laws should also be placed on the agenda.

Although the removal of zeros from the rial can facilitate transactions, it may backfire if implemented under current economic conditions.

In order to implement the plan, inflation rate should remain a single digit for years.

Since President Hassan Rouhani took office in 2013, his government has adopted approaches to contain inflation which had reached over 40 percent under the former administration (2005-13). The incumbent government's efforts were successful as it has managed to bring the inflation rate down to a single-digit over the past months. Nonetheless, experts predict that inflation will surge over 10 percent next year (after March 2017). Hence the removal of zeros from the rial will be counterproductive.

Turkey lopped zeros off its national currency in January 2005 replacing the old lira with new lira by benefiting from the steep fall in inflation.

Iran can follow suit and remove zeros from rial provided inflation rate runs at less than 10 percent in the coming years.

Facts on the ground show that such a plan will remain elusive at least in the next two years.

It is unclear whether inflation can be maintained at the current single-digit rate. Likewise, the country's financial system as well as related laws have not been reformed. Furthermore, liquidity problems still pose challenges to the national economy.

Such issues have to be resolved to pave the way for removing zeros from the national currency.

KeyWords

zero

Iran

money

 

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[screwball]

Iran ready to sign free trade zone agreement with EEU in 2017

Iran will be ready to sign an agreement on establishing a free trade zone with the Eurasian Economic Union (EEU) in 2017, said Russian Federation Council peaker Valentina Matvienko in a statement.

"Iran is ready to complete by the end of the year the first stage of preparation of documents necessary for joining the free trade zone, so that the country would be ready to sign the agreement next year," Matvienko told reporters, Sputnik reported.

The agreement stipulates the creation of a free trade zone between Iran and the EEU to boost the turnover and stimulate mutual trade. Matvienko noted that the president of Iran also called for strengthening efforts on Iran's membership in the Shanghai Cooperation Organization (SCO).

In late December, it was reported that Iran and the EEU, comprising Russia, Armenia, Belarus, Kazakhstan and Kyrgyzstan, were beginning to work on a free trade zone agreement.

[millionaire in training]

Everyone wants to play in Iraq's and Iran's playground now. 

[screwball]

2 hours ago, millionaire in training said:

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

Looks like asia at this stage.....we need dubai to come to the party...and Canada banks

[Freedomwish]

23 minutes ago, screwball said:

Looks like asia at this stage.....we need dubai to come to the party...and Canada banks

Maybe I should start working on a "second passport".....

[millionaire in training]

8 hours ago, Freedomwish said:

Maybe I should start working on a "second passport".....

Definitely a "MUST HAVE" !  Me Too.....

[markb57]

3 hours ago, millionaire in training said:

Definitely a "MUST HAVE" !  Me Too.....

why?

[screwball]

Iran to receive first Airbus jet by 2016 end

Thu Nov 17, 2016 10:58AM

1. Home
2. Iran
3. Economy

A top Iranian official says the country will receive the first Airbus plane in a major deal that it has signed with the French aviation giant before the end of 2016. (Photo by Airbus)

Iran says it expects to receive the first Airbus plane in a major deal that it has signed with the French aviation giant by the end of 2016.  

Javad Hashemi Tehrani, the managing director of Aviation Parts Holding Company of Iran, told the domestic media that the Airbus which is expected to be delivered to Iran will be the first of 17 planes that the US Treasury Department has allowed to be sold to Iran. 

The plane, Hashemi Tehrani added, will be an A321, adding that the plane is currently in its final test and trial phases.  The narrow-body, mid-range jet will be delivered to Iran’s flag-carrier airline Iran Air, he added. 

The Iranian officials had earlier announced that the country would receive 9 planes from Airbus before the end of the current Persian calendar year (21 March 2017) in case the obstacles for delivering the planes are removed.   

Airbus announced in September that it had received the US Treasury Department’s approval to sell aircraft to Iran. The company – together with its American rival Boeing – had earlier this year sealed deals with Iran to sell some 200 planes to Iran.

The announcement over the expected delivery of an Airbus plane to Iran came as lawmakers in the US are preparing to raise a bill at the chamber which would block the sales of planes to the Islamic Republic. 

The House of Representatives is expected to take up, and pass, the measure as soon as this week. However, it is not expected to get through the Senate, where it would need Democratic support to advance, the report added.

The measure would bar the Secretary of the Treasury from authorizing a transaction by a US financial institution related to the export, or re-export, of commercial aircraft to Iran. And it would revoke any authorities enacted before the bill passed, such as those that allowed the Boeing and Airbus sales, it noted.

It would also limit the role of Export-Import Bank financing of sales to Iran.

On Tuesday, The US administration announced that President Barack Obama is set to veto an upcoming legislation to block sales of passenger planes to Iran on the grounds that it would breach a landmark nuclear agreement sealed with the country last year. 

Reuters has in a report quoted the White House as announcing that US partners view the legislation, if implemented, as a violation of the nuclear agreement.   

[screwball]

Airbus contributes 2 planes to Iran’s air fleet

News ID: 3827460 - Thu 17 November 2016 - 19:58

Economy

TEHRAN, Nov. 17 (MNA) – Head of the Kish Free Zone has said since Iran-Airbus negotiations in Paris, the giant has contributed 2 Airbus A321s to Iranian air fleet.

Ali Asghar Mounesan who was speaking to the press on the sidelines of the 8th International Iran Air Show in Kish Island on Thursday, said that the air giant would also improve Kish Air fleet age by contributing another 2 planes later; “the Airbuses are manufactured in 2007, which are relatively young and will improve the performance of the airline; we plan to add another 10 planes to increase the fleet to 20 planes, which includes 7 Boeing McDonnell Douglas planes and 3 Fokker 100,” he detailed.

He told reporters that purchase of brand new aircrafts would be awaited due to financial reasons; “new aircrafts entail huge logistics and preparation in terms of repair and maintenance and operation, which should be economically justified and profitable; we are working on construction of a passenger terminal with a capacity of handling 4.5 million passengers annually, with special runway for Airbus A380 double-deck luxury planes,” Mounesan said.

SH/3827378

[pokerplayer]

I strongly believe with so many countries, so many business deals going on, it will almost be Impossible to put the kind of sanctions back in place unless they are found to be secretly continuing their nuclear program.

With the current deals and new found investments rolling in I highly doubt they would risk it.

  JMHO, pp

[gixxerfrog]

I got a question....if or when iran and/or Iraq RVs . ... let's say 1:1 wouldn't it make their people instant millionaires as well ?? 

[screwball]

5 hours ago, pokerplayer said:

I strongly believe with so many countries, so many business deals going on, it will almost be Impossible to put the kind of sanctions back in place unless they are found to be secretly continuing their nuclear program.

With the current deals and new found investments rolling in I highly doubt they would risk it.

  JMHO, pp

Agree they won't want to risk it but I believe they enjoy having us sanctions in place at the moment...stops speculation

[screwball]

2 hours ago, gixxerfrog said:

I got a question....if or when iran and/or Iraq RVs . ... let's say 1:1 wouldn't it make their people instant millionaires as well ?? 

Yep why wouldn't it...the iran president did say it would cause an economic boom....all that spending...I remember a guy called Mike (offshore wealth) and his mates, more so his mates made a killing off the kuwait dinar but Mike didn't invest as much, they walked straight into the banks and cashed out big, he said he would never make the same mistake twice so he invested heavily in the iraqi dinar.. I took his advice and put some in bank, loaded up on blue chip stocks, I remember the old shares prices they were over 100$us per shares...just had to get in....and have a fair amount of cash. Must admit I have heaps more riald because I think they will go higher than 1:1 JMHO

[screwball]

We need to remember that for years in Iraq money in bank was seized, so people stashed the cash and bought gold. How do you get people to the bank, revlaue your currency, and offer them higher rates of interest...germany did exactly that I remember reading books about germany and when they revalued they had different rates of exchanges, so loans where converted, cash and money in bank all different rates...it was interesting I found the articles online extracts from books written by people that lived through it..also old news articles etc

 

[screwball]

They need people to have trust in the Sytem, protection for their money etc. I would also think that if you are dedollarizinf why would Iranians want to exchange for cash especially usd?

[screwball]

If they have cash they will simply exchange and set up foreign currency accounts, and I am not sure how many would have truck loads considering they are well advanced in the banking...that makes a difference when you are already electronic

 

[screwball]

Iraq banking is in its infancy...cash is king at the moment

[pokerplayer]

OH OH, looks like a Monkey wrench may be coming............ 

U.S. House votes to bar sales of commercial aircraft to Iran

by reuters Thursday Nov 17, 2016 3:51pm

• 

 

 

 

 

By Patricia Zengerle

 

 

WASHINGTON (Reuters) - The U.S. House of Representatives passed a bill on Thursday that would block the sale of commercial aircraft to Iran, a bid to stop sales by Boeing and Airbus that have already been approved by President Barack Obama's administration.The bill passed the Republican-led House by 243-174 largely along party lines. Eight Democrats joined Republicans in favor. All 174 "no" votes were from Democrats.The measure would bar U.S. Treasury Department from issuing licenses that U.S. banks would need to finance sales of commercial aircraft, the latest in a series of efforts by congressional Republicans to counteract the international nuclear deal between Iran, the United States and other world powers.The deals by Airbus and Boeing to sell or lease over 200 jets to IranAir would help modernize and expand the country's elderly fleet, held together by smuggled or improvised parts after years of sanctions.Although Airbus is based in France, it must have the U.S. Treasury Department's approval for the sale because at least 10 percent of the aircraft's components are American-made.Some members of Congress have raised concerns that killing the sale could cost jobs. But opponents, particularly Republicans who unanimously opposed the nuclear agreement, argue that the passenger aircraft could be used for military purposes such as transporting fighters to battle U.S. troops or allies in Syria.The measure is unlikely to become law during the current Congress. It would need to pass the Senate, where it would face stiff opposition from Democrats.And the White House said Obama would veto the measure even if it did pass the Senate. The administration believes the legislation would be a violation of the nuclear pact, in which Iran agreed to curtain its nuclear program in exchange for sanctions relief.However, the climate for the nuclear pact could change once Republican President-elect Donald Trump takes office on Jan. 20. Trump was harshly critical of the nuclear agreement during his campaign.

[Freedomwish]

4 hours ago, pokerplayer said:

OH OH, looks like a Monkey wrench may be coming............ 

U.S. House votes to bar sales of commercial aircraft to Iran

AAAAAAAH CRAP!! 

[WheresmyRV?]

[jaman]

20 hours ago, screwball said:

Yep why wouldn't it...the iran president did say it would cause an economic boom....all that spending...I remember a guy called Mike (offshore wealth) and his mates, more so his mates made a killing off the kuwait dinar but Mike didn't invest as much, they walked straight into the banks and cashed out big, he said he would never make the same mistake twice so he invested heavily in the iraqi dinar.. I took his advice and put some in bank, loaded up on blue chip stocks, I remember the old shares prices they were over 100$us per shares...just had to get in....and have a fair amount of cash. Must admit I have heaps more riald because I think they will go higher than 1:1 JMHO

 

sorry S B..not true in country no different, their money would just have better purchasing power...if you went to the store and bought some bread that cost 1300 dinar that same bread will now cost you 10 dinars but if they went to another country bam now you're talking a lot of fun for no money at all..I know this from my Navy Days when we were in other countries 

[Jaxinjersey]

16 minutes ago, jaman said:

sorry S B..not true in country no different, their money would just have better purchasing power...if you went to the store and bought some bread that cost 1300 dinar that same bread will now cost you 10 dinars but if they went to another country bam now you're talking a lot of fun for no money at all..I know this from my Navy Days when we were in other countries 

I have to agree with you jaman... it will most likely be closer to a net neutral event for in-country citizens.  I remember discussing this at length, with varying degrees of speculation, 5 to 6 years ago here at DV.  The basic idea was that the citizenry would simply have more purchasing power with the dinars they already have.  The economy would adjust to the new value/rate through price adjustments for goods and services, as well as contracts, mortgages, loans, etc.  The citizens' dinars will be subject the new purchasing rate within the country.   And this is why they must dedollarize... they will not just be able to take/send their dinars out of the country to get OUR exchange rate.  And that's the good news for US... we get the benefit of the new rate as it exchanges with OUR dollars... all within a designated exchange period.