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7 hours ago, blueskyline said:

Hypothetically speaking . Let's say the rial and the Toman are now equal after removing 1 zero from local currency the rial . 3900 . Let's say the all agree to that . Then by law they remove I believe 3 or 4 zeros like SC said . That would be very nice ????? Hypothetically speaking 

Even more excited missed this reference to delete zeros...yeah baby!

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Finance Desk

The government has approved changing Iran’s monetary unit from rial to toman, which will lop off one zero from the current national currency rial.

The decision was made when ratifying the Central Bank of Iran's bill during the Cabinet meeting on Wednesday, which was presided by President Hassan Rouhani, the government’s news website Dolat.ir reported.

While rial has been used as Iran's monetary unit in official documents and budget statements, toman was being used more commonly in daily transactions by citizens. The government will send the bill to the parliament for final approval.  

Prices of goods are mostly marked in rials, 10 of which equal one toman.

The government and Central Bank of Iran aim to ease financial operations as the duality of monetary units has been causing confusion among people. The move would also reduce the cost of money printing and maintenance.

Toman has been used as Iran’s currency for a long time. Between 1798 and 1825, the toman was subdivided into 8 rials, each worth 1,250 dinars, according to Wikipedia.

In 1825, the qiran was introduced, worth 1,000 dinars or one-tenth of a toman. In 1932, the rial replaced the toman.

Plans for changing the national currency unit was first considered by the previous administration. The Central Bank of Iran even asked the public to suggest names for a new currency unit during the previous administration.

Advantages

The plan will result in dropping a zero from the national currency, whereas there has been much talk about removing three or four zeros from the rial in the past few months.

Revaluation of the national currency could help boost its efficiency and ease daily transactions, according to experts.

Last month, Economy Minister Ali Tayyebnia said the time was not ripe for revaluating the national currency, as it requires more stability in the economy. However, he favored the idea in general, saying that it was necessary.

In the absence of any perceptible sign of government intention in this regard, the sudden announcement on Wednesday came as a surprise.

However, the implementation of the plan could prove a costly and time-consuming one, if the government decides to replace the current banknotes with new ones.

Experts have pointed out that the government is better off removing three or four zeros from the national currency, considering the probable cost of a revaluation plan in future.

Pouya Jebel Ameli, an analyst with CBI, thinks that the issue should have been reviewed more closely, before the Cabinet passed it.

“Stability in the rate of inflation is a prerequisite for implementing currency reforms,” he said.

“New banknotes must be printed, if the parliament approves the plan,” he added, stressing that more zeros need to be dropped.

Valiollah Seif however took to the instant messaging telegram app later in the day, announcing that the plan should not be considered as currency revaluation proper, “It is set to help ease money transactions for the public.”

“Currency revaluation has been fully studied by the Monetary and Banking Institute,” he said, “We have identified all the prerequisites needed for implementing reforms in the national currency, stable single-digit  inflation being one of them.”

Asset Management

Toman was not the only issue discussed by the Cabinet on Wednesday. It also allowed CBI to import and export gold tax-free and without the government's permission.

The proposal, also included in the Central Bank Bill, aims to help CBI manage its assets.

The bill has been crafted to upgrade and modernize banking regulations. Improving the independence of CBI, enhancing monetary policymaking and CBI’s supervision over the money market are among its key goals.

The Central Bank Bill is set to improve the regulator's independence in various aspects. The bill is expected to be delivered to the parliament along with the Banking Reform Bill that aims for a comprehensive reform in the banking sector by making it more compatible with international standards and Islamic finance principles.

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Dec 20? - march 20!

The Central Bank of Iran’s grand plan to overhaul its financial oversight regime is almost complete and will be unveiled soon, announced the bank’s governor.

“The plan to overhaul CBI’s financial regulation practices will be completed by the end of the current month (December 20),” Valiollah Seif was also quoted as saying by the official website of CBI.

Seif was speaking at the Monetary Supervision and Discipline Conference organized by the Iranian Accounting Association on the occasion of National Accounting Day on Tuesday.

“This comprehensive plan, which kicked off in 2013 with a pragmatic approach, is currently being wrapped up and will be officially introduced and become operational by Dec. 20,” he said, adding that a group of experts and academics have worked on it non-stop.

The main achievement of the plan is the “new operational model of supervision over the banks”, the official said, which has been devised by employing the latest in international experience while completely localizing its components.

“With the plan finding its place by the end of the year [March 20], we will be witnessing an improvement in the effectiveness of supervision over banks and a serious change in setting financial regulations,” he added.

Iranian lenders, isolated by years of sanctions from international engagement, have been far behind in regulatory and accounting standards, prompting the central bank and the government to launch a comprehensive reform plan to upgrade the key banking sector.   

Seif called the complete execution of international standards one of the main concerns of the central bank, saying there is currently a broad censensus that Iran’s banking system is in dire need of closing the huge gap created during the years of sanctions in terms of conforming to the global standards.

“As a result, CBI is pursuing the complete implementation of IFRS and other international banking requirements such as Basel guidelines,” he said.

A set of accounting standards, International Financial Reporting Standards have been developed by an independent, not-for-profit organization called the International Accounting Standards Board.

The Basel Accords, including Basel I, Basel II and Basel III, are recommendations on banking capital adequacy requirements issued by the Basel Committee on Banking Supervision.

  New Balance Sheets

The CBI governor also referred to a set of balance sheet templates issued earlier this year, saying they have been working toward the initial goal of increasing transparency in the country’s banking system.

With a precise new design, Seif said, the old profit and loss statement of the banks, which mixed the operations of loss and profit and the sharing of dividends and rendered it hard to decipher, have now “attained a new suitable look and provide transparent information”.

The balance sheets templates were first released by the central bank in February to improve the financial transparency and international operations of Iranian banks.

While the CBI had promised law-abiding banks it would cut their reserve requirements by up to 3% in October of last year as part of a government stimulus package, it said that the quality of financial statements will be the criteria for assessing banks’ performance and the cut in their reserve requirements.

The templates are developed based on IFRS and in accordance with usury-free banking regulations.

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The new type of financial statements adopted by the Central Bank of Iran has done nothing to cause Iranian banks’ profit woes, says the director of CBI’s Department for Supervising Banks and Credit Institutions.

“The financial statements considered by the CBI have not made the banks suffer losses because the standards are the same and the statements have created no change in profits and losses,” Abbas Kamarei was also quoted to have said by the official website of the central bank.

“The central bank strives to work on the basis of its mandate and in a way that the income generated by the banks will be real.”

Despite the mandate to adopt international financial reporting standards, Tehran Stock Exchange has suspended the trading of banks’ stocks. A few big lenders have posted losses and investors are angry because of the uncertainty.

Some have sent angry letters to the head of Securities and Exchange Organization demanding explanations and change. Yet the suspension is continuing without anyone taking responsibility.

With regard to non-performing loans, the official notes that guidelines regarding asset classifications must be adhered to. He added that if these guidelines are to be implemented fully, “banks must have tried to put aside bad debt provision in their financial statements way more than they do today”.

The central bank and its governor Valiollah Seif have repeatedly emphasized the importance of upgrading the financial statements of the Iranian banking system and bringing it up to date with international standards.

Seif himself puts added stress on sticking to IFRS.

  Transparency Boon

On criticisms and concerns that the implementation of CBI policies has stopped banks from trading their shares in the market and led to their symbols becoming frozen, the official chose to stick to positive aspects.

“In the past, the major portion of the banks’ income was generated through services and fees of international operations and these revenues were highly influential regarding financial statements,” he said.

“Therefore, if the greater transparency of financial statements leads to the expansion and development of ties between banks and goes on to bulk up their income from services and fees, their share prices will certainly increase.”

Kamarei noted that one of the major criteria of setting share prices–other than profitability–is transparency and the future of that industry.

“Therefore if the totality of measures undertaken lead to added transparency and bring about more income for the banks, their share prices in the exchange market will surely be influenced,” he said.

The official said he hopes documents and approvals regarding the government’s debts to the banking sector will be sent to the central bank.

As he awaits the results of negotiations with the Ministry of Economy and the Planning and Budget Organization of Iran, Kamarei said, “Its finalization is out of my hands.”

By the end of the sixth month of the current fiscal year (Sept. 20), the government’s debts to the banking sector jumped to 2.041 quadrillion rials ($64 billion).

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“New banknotes must be printed, if the parliament approves the plan,” he added, stressing that more zeros need to be dropped.

Valiollah Seif however took to the instant messaging telegram app later in the day, announcing that the plan should not be considered as currency revaluation proper, “It is set to help ease money transactions for the public.”

“Currency revaluation has been fully studied by the Monetary and Banking Institute,” he said, “We have identified all the prerequisites needed for implementing reforms in the national currency, stable single-digit  inflation being one of them.”

so they haven't printed any....yeah like four zeros!

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9 hours ago, blueskyline said:

Hypothetically speaking . Let's say the rial and the Toman are now equal after removing 1 zero from local currency the rial . 3900 . Let's say the all agree to that . Then by law they remove I believe 3 or 4 zeros like SC said . That would be very nice ????? Hypothetically speaking 

My apologies .... SC =SB Screw Ball

 

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Revaluation of the national currency could help boost its efficiency and ease daily transactions, according to experts.

Last month, Economy Minister Ali Tayyebnia said the time was not ripe for revaluating the national currency, as it requires more stability in the economy. 

However, the implementation of the plan could prove a costly and time-consuming one, if the government decides to replace the current banknotes with new ones.

Experts have pointed out that the government is better off removing three or four zeros from the national currency, considering the probable cost of a revaluation plan in future.

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TEHRAN, Dec. 07 (MNA) – Cabinet headed by President Rouhani has approved change of official currency from current Rial to its superunit Toman, officially designated as Touman.

The bill however will be sent to the Parliament and needs approval before going effective as a law. On Wednesday, Cabinet meeting addressed ‘Central Bank of the Islamic Republic of Iran Bill,’ during which a proposal related to currency change was approved.

In the new system, each Touman will equal 10 Rials (Rls.). Touman had been during the economic history a major currency in Iran, with Rial only dominating the scene after the fall of Qajar period and the modern reforms introduced to the country.

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BP ready to pay off Iran’s debts

زمانی نیا نفت گاز
News ID: 3843658 - Wed 7 December 2016 - 15:19
TEHRAN, Dec. 07 (MNA) – Deputy oil minister has announced that British Petroleum (BP) is ready to settle debts to Iran though the process has been hindered due to banking issues.

Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia said several negotiations have been conducted so far between Iran’s Ministry of Foreign Affairs and UK’s BP on receiving Iran's share in Rhum gas field.

The official highlighted that the British firm has voiced complete readiness to retire its gas debts to Iran asserting “the main cause of the lengthy delay in collecting Iran’s revenues pertain to certain banking barriers.”

He underlined that grounds have been provided through foreign banks and the debt is estimated to be cleared in the days to come.

On the amount of BP’s debt to Iran, Zamaninia maintained that the gas debt figure is not significant and barely reaches several hundred million dollars all of which will be repaid in the near future.

Managing Director of National Iranian Oil Company (NIOC) Ali Kardor had previously touched upon the latest status for release of funds earned by partnership of BP and Iranian Oil Company UK Ltd., a subsidiary of the National Iranian Oil Company, in Rhum gas field saying Britain has deposited Iran’s share of Rhum gas field revenues into NIOC’s account though the amount is frozen for the time being.

The official had stated that the financial resources for Iran’s participation have been credited to NIOC’s account asserting “at present, the Iranian side is not able to withdraw the amount from its account.”

In 2005, National Iranian Oil Company (NIOC) and Britain’s largest oil firm BP launched a 656-million-dollar cooperation producing gas at the offshore gas field of Rhum in Scotland.

BP and the National Iranian Oil Company (NIOC) jointly share the Rhum gas field with an equal share distribution of 50 percent.

After five years of gas extraction from the joint gas field with a daily production of about 190 million cubic meters, operations were suspended at the field in November 2010 after the EU introduced sanctions against Iran.

According to the estimates provided by BP, the Rhum field contains 800 billion cubic feet of gas and accounts for about 5% of the UK’s annual gas production.

Meanwhile, Iran’s shares of the revenues from the field are currently frozen in an account in London under the sanctions regime though the UK resumed gas production in the field around three years ago.

HA/3843518

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نفت گاز شل توتال
News ID: 3843757 - Wed 7 December 2016 - 16:16
TEHRAN, Dec. 07 (MNA) – National Iranian Oil Company (NIOC) will sign into three accords with France’s Total and Royal Dutch Shell over development of three oil and gas fields of Iran.

Following the signing of an Agreement in Principle (AiP) with France’s Total S.A. company on development of South Pars Phase 11, the French firm will seal two more agreements today with NIOC.

One contract to be inked between the two sides today on Wednesday December 07 pertains conducting studies and development of Azadegan joint oilfields.

The accord follows an earlier meeting in December between Iran’s Oil Minister Bijan Zanganeh and Chairman and CEO of Total Patrick Pouyanné held on the the sidelines of OPEC summit in Algeria where the two sides mulled over venues to develop South Azadegan oil field.

NIOC and France’s Total had also sealed a confidential disclosure agreement in March in order to develop Iran’s South Azadegan joint oilfield with Iraq and the French side was required to present its technical bid in six months’ time.

Earlier, the Project Director of the Development Project of South Azadegan Seyyed Mahmoud Mar'ashi estimated that the required volume of investment for the project will be less than five billion dollars in order to reach a daily production of 300 to 320 thousand barrels of crude oil.

In the current time, about 50 thousand barrels of crude oil is being extracted from the joint oil field while completion of the first developmental phase will raise the output to 100 thousand barrels per day by the end of the current year.

In addition to the deal on Azadegan, another agreement is slated to be signed with Total over expansion of Kish gas field as one of the NIOC Recent Discoveries which was discovered in 2006.

A total of 12 wells have so far been drilled in Kish gas field, which is a giant independent field close to Kish Island in the Persian Gulf, and three developmental phases have been defined to realize five billion cubic feet of gas.

The third contract, however, will be endorsed today between NIOC and Royal Dutch Shell on development of Yadavaran joint oilfield. It remains noteworthy that the first phase of development in the Iranian field has been carried out by Sinopec of China.

With completion of Phase 1 of North Azadegan oilfield, in collaboration with China National Petroleum Corporation International (CNPCI), the production at Yadavaran joint field has also surged to 115 thousand barrels per day as a result of cooperation with Sinopec.

Oil production at the joint oilfield with Iran has currently reached 115 thousand barrels which exceeds the initial commitment made for the first developmental phase by approximately 30 thousand barrels.

Yadavaran oilfield has a reservoir of 17 billion barrels and a potential to produce 300-400 thousand bpd of crude.

Iran’s Oil Minister Bijan Zanganeh had previously said the MDP of phase II of North Azadegan and Yadavaran oilfields has been approved by Chinese contractor SINOPEC and China National Petroleum Corporation (CNPC) under an initial contract, adding “Iran is ready to hold multilateral negotiations with Chinese companies within its accepted framework.”

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ranian cabinet approves currency change

December 7, 2016
 
2297729.jpg

TEHRAN – The administration of President Hassan Rouhani approved a measure on Wednesday calling for the change of the national currency from the rial to the toman.

One toman would be worth 10 rials, or around 3,200 to a dollar at official exchange rates, and 3,900 to a dollar at unofficial rates.

However, the approval should be ratified first by the parliament and then endorsed by the Guardian Council to take effect.

HJ/MA/MG

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Iran moves to change currency unit to toman

Iran moves to change currency unit to toman

The Iranian government on Wednesday approved a proposal to change the country's currency unit from rial to toman.

One toman equals 10 rials and one dollar is worth about 3,900 tomans in Iran's unofficial market currently, IRNA reported.

The move will require final approval by the legislative body.

Prior to 1932, the Iranian currency unit was toman. It was then changed to rial at a rate of 10 rials to the toman.

Although the toman was no longer an official unit of Iranian currency over the past decades, Iranians commonly retained the use of toman in quoting prices of goods and services.

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