Iranian Rial

[Freedomwish]

12 hours ago, screwball said:

No excitement.....hard crowd to please! Lol

Oh trust me buddy, we're excited LOL!!  But most of us are if anything, highly concerned on what to do/what to expect when dealing with the US when it comes to cash-in time....

At this moment in time, I have my AMEX card ready to book an "emergency flight" to where ever I'll need to be indeed....yup!

[pokerplayer]

1 hour ago, Freedomwish said:

Oh trust me buddy, we're excited LOL!!  But most of us are if anything, highly concerned on what to do/what to expect when dealing with the US when it comes to cash-in time....

At this moment in time, I have my AMEX card ready to book an "emergency flight" to where ever I'll need to be indeed....yup!

Me as well !! Except I have to pack a case of whisky to bring to the party !! ah ahem for a friend who at this time will remain anonymous   lol

pp

[screwball]

Never a question a question of if or when , becuase we know it will but has always been with this investment the "how"...there mere mentIon of the forex and Cbi governor asking banks to activate their forex sections means that we will be able to exchange it at a currency exchanger...
 

[screwball]

2 hours ago, pokerplayer said:

Me as well !! Except I have to pack a case of whisky to bring to the party !! ah ahem for a friend who at this time will remain anonymous   lol

pp

You will have to pay for extra luggage for rials and whiskey...

[Freedomwish]

3 hours ago, pokerplayer said:

Me as well !! Except I have to pack a case of whisky to bring to the party !! ah ahem for a friend who at this time will remain anonymous   lol

pp

HAHAHAAAAA!!  Ohhhh yeeeeaaaaah!! 

[WheresmyRV?]

2 hours ago, screwball said:

Never a question a question of if or when , becuase we know it will but has always been with this investment the "how"...there mere mentIon of the forex and Cbi governor asking banks to activate their forex sections means that we will be able to exchange it at a currency exchanger...
 

They are definitely getting ready!

[screwball]

1. Economy
2. Business And Markets

Tuesday, December 06, 2016

CBI Unveils Mobile Payment Platform

 

Central Bank of Iran and Shaparak Company, Iran’s payment network supervisor, have required all payment service provider companies to use the newly-launched “Peyvand system” instead of the low-security USSD platform. Nasser Hakimi, the director of CBI’s IT Department, said all mobile transactions should take place in the new platform from December 21. “Law-breaking PSPs will be fined or banned from using the system,” Banker.ir quoted Hakimi as saying on Monday. The CBI launched Peyvand in late September, in line with plans to raise the security of mobile transactions. The central bank last year introduced a ban on mobile payments through Unstructured Supplementary Services Data for fear of fraud. However, it decided to come up with an alternative platform. About 12% of electronic payments in Iran take place through online payment gateway

[screwball]

2 hours ago, WheresmyRV? said:

They are definitely getting ready!

Ain't that the truth...

[screwball]

Opinion piece

he past two weeks saw the US dollar surge to a historic high in Tehran’s market, unleashing the usual panic emblematic of all currency upheavals elsewhere.

The occasion was reminiscent of the currency crisis of 2012 when the rial lost 57% of its value over three months in the thick of sanctions against the country’s nuclear program. 

Although what transpired in the past couple of days is not nearly as dire as the ordeal of the sanctions years, the reactions were almost similar: a cat-and-mouse game erupted in the media to find the culprit, with the Central Bank of Iran and the government awkwardly moving to assuage fears by claiming their oft-repeated mantra of “this too shall pass”. 

But the market seems after all to have a mind of its own, which means it responds primarily to investors’ sentiments. And the recent geopolitical developments had plenty of grist for their mills: from the election of  Donald Trump in America and the renewal of Iran Sanctions Act by a hostile US Congress to the higher rate set for the US dollar in the 2017-18 budget bill unveiled on Sunday, all joined forces to fan the flames of uncertainty. And uncertainty they unleashed. 

After all indecision is part of the world and the inevitable could happen at any moment: It happened in the aftermath of the Brexit vote when the pound fell to a three-decade low against the dollar and as of this writing, the euro has slid to a 20-month low against the greenback after the constitutional reforms proposed by the Italian Premier Metteo Renzi failed to win broad support in a referendum.  

  False Comfort 

Every market volatility has both upsides and downsides, but the bigger question is whether the government is prepared to deal with such fluctuations. 

The CBI and the government have been oblivious to repeated urgings from independent observers and private-sector leaders to let go of currency controls that have over the years kept the rial overvalued. The government has cited inflationary fears to justify its foreign exchange controls–which pundits strongly dispute would have any lasting disinflationary effects–but at a visceral level it is fueled by a decades-old policy of playing to popular sentiments that view the rial’s value as a matter of national pride and a sign of economic stability. This may be relatively true, but these strategies have come at a ruinous cost to domestic production. 

As most economists point out, the rial’s overvaluation has made imports cheaper all these years while Iranian manufacturers have had to wrestle with sky-high inflation. Add to this the dual exchange rate regime that allocates subsidized hard currency to a select few and ends up lining the pockets of rent-seeking individuals.   

The fact is that the current administration is continuing down the path of its predecessors, but expecting different results. By delaying difficult decisions that may prove painful in the short run, the government is opting to defer reforms until an unknown futurity.  And when a market shock sends the rial tumbling, hand-wringing and blame games ensue. One wonders how long this could continue. 

In recent days, analysts and pundits have written extensively, pontificating on the follies of currency controls and recommending an approach that would allow for floating yet managed forex rates. 

When the rial oscillates in accordance with the difference between the domestic and global inflation, a sudden shock will not merit wild fluctuations that even CBI’s injection of foreign exchange would not allay. 

Albert Einstein rightly observed that insanity is doing something over and over again and expecting a different result. The latest blow of discredited policies to CBI has been the indefinite suspension of its much-hailed plan to unify the exchange rates–a pledge that was to be fulfilled at the end of the current fiscal in March. 

Einstein’s concept of insanity becomes all the more poignant as the go-go oil prices has become a thing of the past and the government simply does not have enough maneuver room to bend the markets to its will as in the past. 

If the government wishes to be able to forestall future storms, it should be willing to loosen its grip on the market while the sun still shines. 

 

[screwball]

urkish President Recep Tayyip Erdogan said his country is moving toward allowing trade with Iran, Russia and China in local currencies, as he continues his efforts to strengthen the falling lira.

“If we buy something from them, we will use their money, if they buy something from us, they will use our currency,” he said, ahead of a trip by Turkish Prime Minister Binali Yildirim to Russia for meetings on Tuesday, Middleeasteye.net reported. 

Erdogan, who previously said discussions were underway with Moscow, Beijing and Tehran on the issue, added that instructions related to this proposal had been given to the central bank.

Ankara hopes such demands will help the lira recoup the losses it suffered since the failed coup in July.

In November alone, the lira declined more than 10 % while it continues to reach record lows against a stronger US dollar.

Back in May, Chairman of Istanbul chamber of industry, Erdal Bahcivan, announced on a visit to Tehran that banking relations with Iranian lenders will be based on the Iranian rial and the Turkish lira.

[screwball]

The Central Bank of Iran should take quick measures for regulating fintech firms to prevent potential problems in future, said the director of IT Center of Export Development Bank of Iran, noting that startups are becoming a key part of Iran’s payment industry.

“Lack of regulations for the operation of fintechs in the country is a major challenge in the banking system. Policymakers are expected to revise their approach to fintechs and see them as an important part of the financial markets,” Habib Ahmadi was also quoted as saying by Monetary and Banking Institute’s website.

Referring to the relationship between banks and fintechs in other countries, he said, “We cannot ignore new players in financial markets, as they will be an inseparable part of the banking system in the coming years.”

There has been much dispute over the operation of non-bank fintech firms in recent months. Fintech-related bodies are reportedly planning to come together to decide about the state of aggregators, probably to shut them down.

Ahmadi admits that fintechs rival the banking sector, although the partnership of banks and fintechs would help enhance Iran’s banking system.

“Banks, as large and sluggish organizations, cannot provide customers with services similar to fintechs,” he said, noting that non-bank startups are creating new opportunities for banks.

“But fintechs might endanger security of banking operations,” he added.

Back in October, Nasser Hakimi, the head of CBI’s IT Department, said the CBI allows fintech firms to continue to operate so long as they are not involved in money creation, currency exchange and offering payment tools (like cards) and  attract deposits.

The official added that fintechs should ensure they are not creating money “by removing one of these features from their services”.

Hakimi added that the current condition of financial markets in Iran is totally different from those of other countries. 

“Fintechs cannot survive unless you operate in close proximity with other market players. You should be cautions enough to keep the partnership beneficial for both sides,” he said.

On the other hand, regulatingthe operation of fintechs is not as easy as it seems. 

Mehrdad Sepahvand, an economist, believes that regulators cannot prescribe comprehensive regulations for innovative industries, unlike what is happening in other sectors. “Regulators should regulate the operation of fintechs case by case,” Way2pay quoted him as saying.

“I think CBI should launch a specific department for fintech firms, to which developers can apply for an operating license,” he said. “CBI experts could review each proposal and make sure that they are in accordance with the central bank’s policies.”

A sum of $50 billion was invested into fintechs during 2010-15 across the world. 

Unofficial reports show that about 50 fintechs are operating in Iran’s financial markets, all of which have developed in the past three years. 

 

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[screwball]

As per the new budget bill submitted to the parliament by the government, those who are making less than 15 million rials ($384 at market exchange rate) a month, will be exempt from paying income tax in the next fiscal year (March 2017-18). The bill assumes larger revenues from taxes, which are projected to rise 1,130 trillion rials, up from last year’s figure of 1,010 trillion rials. The parliament is scheduled to finalize the proposed budget by February 2017, Mehr News Agency reported 

[screwball]

Rouhani submits $486 billion budget bill to Majlis

1. Economy

December 4, 2016

 

TEHRAN - President Hassan Rouhani presented the administration’s draft of the national budget bill for the next Iranian calendar year 1396, which starts on March 21, 2017, to the Majlis.

The proposed national budget amounted to about 10.849 quadrillion rials (about $486 billion), an 11 percent rise year on year.

Next year’s national budget is based on an oil price of $50 per barrel, up from $40 last year, with a focus on unemployment, water resources, railways and the environment. It also sees a projected average exchange rate of 33,000 rials to the U.S. dollar for the fiscal year. The rial is currently 38,600 to the dollar on the open market.

The funding for running the government increased by 260 trillion rials (about $6.8 billion) and was set at 3.2 quadrillion rials (about $84.2 billion).

The draft national budget estimates crude oil exports at about 2.42 million barrels per day. Oil income has a share of 1.1 quadrillion rials (about $29 billion) in the budget, a 48 percent rise year on year.

Meanwhile, the budget has allocated 600 trillion rials (about $15.7 billion) to development projects, compared to 570 trillion rials (about $15 billion) in the current year’s budget. The budget bill has envisaged that tax income will rise by 8.7 percent in the next year, reaching 1.12 quadrillion rials (about $29 billion).  

“Maintaining the growth rate that was launched in the (current) year is the main economic issue for the country and all economic policies should be designed around this axis,” Rouhani told MPs.

“We hope to end the (current) year with single-digit inflation, a 5 percent growth rate and the creation of 700,000 new jobs,” Rouhani said in his speech.

MG
 

[screwball]

Turkey seeks trade in local currencies with Iran: Erdogan

1. Economy

December 5, 2016

 

Turkey is seeking to conduct trade with Iran, Russia and China in local currencies, Turkish President Recep Tayyip Erdogan said December 3. “We have given the necessary instructions to our central banks and we will try to conduct such [trade] relationships between us through this way,” Erdogan said. 

Speaking at the opening ceremony of a shopping mall in Istanbul, Erdogan said that he had proposed Russian President Vladimir Putin to conduct trade between the two countries with local currencies.

“I proposed Putin the following: Let’s do our trade in local currencies. Whatever I buy [from you] I shall pay you in Russian ruble, and whatever you buy from me make the payment in Turkish Liras,” said Erdogan.

He added that he had made the same offer to China and Iran and his offer was found reasonable.

Erdogan also reiterated his call to Turkish citizens to convert their foreign exchange into gold or the Turkish Lira.

“Those who keep foreign currency under their mattress should come and turn them into lira or gold,” he said.

Stating that one should convert their foreign currencies to liras or gold against the ones who want to “destroy us,” Erdogan also answered the question of ‘what if we lose money,’ with this currency conversion.

“Look, this is national, there is fruitfulness in this, you will not make a loss from this, do not worry,” said Erdogan, adding that it was actually the “other,” a reference to foreign currencies, that would make the Turkish people lose because “the other is a representative of the imperial logic.”

“You look after your money that is local and national; the money will stay here,” he said.

(Source: Hurriyet)

[screwball]

ustralia's Servcorp opens branch in Tehran

Kuala Lumpur, Dec 6, IRNA – Australia's Servcorp- the World's Finest Serviced Offices‎- opened its first branch in the Iranian capital city.

 

Tehran office is the seventh branch that the Servcorp has opened in the Middle East region.

According to the 4-traders, an international stock market and financial news website, the Australian company is planning to open 10 branches in Iran as business relations between Iran and Australia are expected to strengthen.

Servcorp Limited is a multinational organization that sells serviced office space, virtual office products and IT services. It was established in 1978 and listed on the Australian Stock Exchange in 1999. As of June 2016, it operates in 150 business centers in 52 cities across 21 countries, the website reported.

Attending the opening ceremony on Dec 3, the Australian Ambassador to Tehran Jan Biggs said the removal of sanctions on Iran has opened great hopes for expansion of business ties between the two countries, the 4-traders wrote.

In Sep , the website added, the Australian Trade Minister Steven Ciobo at the head of an economic delegation travelled to Tehran and talked of his trip saying 'We are in the dawn of a new age of the relationship with Iran.'

[jaman]

On 12/4/2016 at 8:24 PM, screwball said:

Banks encouraged to resume forex trade now that sanctions lifted

Tehran, Dec 4, IRNA – Governor of the Central Bank of Iran (CBI) Valiollah Seif said on Sunday that Iranian banks were authorized to resume their forex trade, the ordinary operation prevented by international sanctions so far.

 

Seif said that Iranian banking system is required as per the CBI directive on August 1 to do business in foreign currencies in free exchange rates.

Under the CBI directive, the banks will take leadership from the private exchange shops.

Deputy Governor of the CBI for Foreign Exchange Affairs Gholam-Ali Kamyab says the responsibility for commercial exchange settlements in the market, which used to be handled by banks, were delegated to the exchange shops due to the sanctions on the banking system.

Seif told a group of bankers and international affairs directors of the banking system, that they would resume operations in foreign currency thanks to lifting the sanctions.

Seif said banks can re-activate their forex section, thus reaping good amount of income, minimizing operation risk of the economic activists and making foreign payments and foreign trade safer.
1420**1416

 

Wow ....it should be Anytime Now...Right?

 

[Freedomwish]

2 hours ago, jaman said:

Wow ....it should be Anytime Now...Right?

 

Hopefully Jaman, hopefully..

[screwball]

Iran is ready for closer alignment with China, as the two sides have many common interests and a shared view on international developments.

Foreign Minister Mohammad Javad Zarif made the statement in a meeting with his Chinese counterpart, Wang Yi, in Beijing on Monday, IRNA reported.

Pointing to the long history of bilateral relations and the positive experience of economic cooperation, the top Iranian diplomat said there are no major obstacles to closer interaction between the two Asian nations.

"The Islamic Republic of Iran sees no limit to fostering collaboration with China," he said.

Pointing to the January visit by Chinese President Xi Jinping to Iran, Zarif said he believes the full implementation of agreements made in the trip, including 17 memorandums of understanding, can help open a new chapter in bilateral relations.

During Xi's state visit, the two countries agreed to increase bilateral trade by more than tenfold to $600 billion in the next decade.

Wang called for strengthening bonds of friendship between the two nations, adding that Beijing welcomes and supports Iran's bid to join Shanghai Cooperation Organization.

Iran gained observer status in the security and economic organization in 2005 and submitted its request to join in 2006, but international sanctions on Iran were a major obstacle to the acceptance of Iran.

*** Need to Uphold JCPOA

The Chinese minister pointed to the July 2015 nuclear deal between Iran and major powers, saying it is up to all sides to "fully" honor their commitments under the deal.

"The Joint Comprehensive Plan of Action is a multilateral agreement approved by the UN Security Council, and domestic developments in countries should not damage it," he said.

Wang was alluding to the recent victory in US presidential election of Donald Trump, who during electoral campaigns called the deal "the worst ever negotiated" and once said dismantling it would be his "number-one priority" if elected to office.

Although other contradictory statements by Trump and his advisors have made it difficult to predict what he will actually do to the pact, a cloud of uncertainty has surrounded the agreement that was concluded after two years of negotiations between Iran and P5+1 (the US, Britain, France, China and Russia, plus Germany).

The deal, which was later endorsed by UNSC Resolution 2231, resolved a 12-year dispute by removing the UN, the US and EU sanctions on Iran in return for temporary curbs on its nuclear program.

A recent controversial decision by the US Congress to pass a bill extending the Iran Sanctions Act for another decade has triggered concerns about the accord, as Iranian leaders have described its possible approval by US President Barack Obama, which will turn it into a law, as a breach of the deal and vowed to respond accordingly.

After meeting with Wang and a subsequent joint press conference, Zarif sat down for talks on bilateral relations with the Chinese vice premier, Zhang Gaoli.

According to the Chinese media, Wang and Zarif were to co-chair the first annual foreign ministers' meeting, a mechanism to help deepen mutual trust agreed upon during Xi's January visit to Iran.

China was the second leg of a three-nation Asian tour that began in India on Saturday, with Zarif heading a 38-strong politico-economic delegation. 

In the South Asian country, Zarif delivered a speech at the Sixth Ministerial Conference of the Heart of Asia and attended an economic forum of Iranian and Indian businesspeople.

Japan is the third destination of Zarif's tour, where he is expected to meet his counterpart, Fumio Kishida, and take part in business forums.

[screwball]

6 hours ago, jaman said:

Wow ....it should be Anytime Now...Right?

 

I believe so...

[screwball]

Iran welcomes foreign investment: Economy minister

Tehran, Dec 6, IRNA – Iran welcomes foreign investors and facilitates their participation in the investment projects, Minister of Economic Affairs and Finance Ali Tayyebnia said on Tuesday.

 

He made the remarks at the 20th International Congress of Asia-Pacific Central Securities Depository Group (ACG).

Iran's economic organizations and institutions including the country's stock market are ready for development of mutual cooperation with the world economic institutions, the economy minister added.

He noted that Iranian economic institutions welcome foreign economic plans for boost of cooperation.

The economy minister said Iran has prepared incentive packages for absorbing foreign investment in the free trade zones, including 20-year tax exemption.

Visa removal and facilitation of foreign investors' presence in the free trade zones are other parts of the incentive package, he added.

The foreign investors which have been registered in Iran can possess the land, the economy minister said while elaborating the details of new incentive packages. 

ACG was set up in November 1997 with the membership of 14 depository companies.

The ACG is currently a regional platform of 33 depositories and clearing organizations from 23 countries including China, South Korea, Australia, New Zealand, Japan, India, Sri Lanka, Thailand, Uzbekistan and Iran.

[screwball]

 

Australia's Servcorp opens branch in Tehran

Kuala Lumpur, Dec 6, IRNA – Australia's Servcorp- the World's Finest Serviced Offices‎- opened its first branch in the Iranian capital city.

 

Tehran office is the seventh branch that the Servcorp has opened in the Middle East region.

According to the 4-traders, an international stock market and financial news website, the Australian company is planning to open 10 branches in Iran as business relations between Iran and Australia are expected to strengthen.

Servcorp Limited is a multinational organization that sells serviced office space, virtual office products and IT services. It was established in 1978 and listed on the Australian Stock Exchange in 1999. As of June 2016, it operates in 150 business centers in 52 cities across 21 countries, the website reported.

Attending the opening ceremony on Dec 3, the Australian Ambassador to Tehran Jan Biggs said the removal of sanctions on Iran has opened great hopes for expansion of business ties between the two countries, the 4-traders wrote.

In Sep , the website added, the Australian Trade Minister Steven Ciobo at the head of an economic delegation travelled to Tehran and talked of his trip saying 'We are in the dawn of a new age of the relationship with Iran.' 

1483**1771

[pokerplayer]

I suspect that we will see rapid developments before our New Year. From all the articles SB has brought to the table it would not surprise me if it happens this month even.

Nothing concrete I have points to this just a gut feeling is all.

pp

[millionaire in training]

2 hours ago, pokerplayer said:

I suspect that we will see rapid developments before our New Year. From all the articles SB has brought to the table it would not surprise me if it happens this month even.

Nothing concrete I have points to this just a gut feeling is all.

pp

Well.......Your gut feeling may be right.    Iraq is expected to RV this month and from what I have read Iran will be right behind them. As in hours (as to not create double dipping) so we shall see.  I've stopped getting excited over this. Just watching and reading. Im sort of drained of excitement  , so many years of waiting on this (dinar) to happen.  On the up side .....Im actually calmer and wiser now more then ever.  Very concern of doing the right things after this hits. But I guess thats what lawyers, accountant and Adam are for.

I strongly advise any of you guys and gals to check out OSI. It WILL make a HUGE difference. I would not make a move without it.

Best of luck to all......  MIT

[WheresmyRV?]

Mit what is OSI?

[pokerplayer]

1 hour ago, WheresmyRV? said:

Mit what is OSI?

Off Shore Investment. It's Adam's pet project for when we RV. I'm seriously considering joining. Hope that helps WmR.

pp