Iranian Rial

[screwball]

Changing Iran's monetary unit from rial to toman and the subsequent replacement of all banknotes with the new currency present no cumbersome challenge, the Central Bank of Iran's governor said.

"This measure [of renewing the banknotes] causes no problem and it does not seem to entail much cost either because if the proposal is approved by the parliament, current banknotes can be used until the last moment," Valiollah Seif said in a talk with Tasnim News website.

"New banknotes will gradually be printed in toman instead of rial and while the old notes are still in circulation, they can be used simultaneously. The rest is not complicated and can be resolved through directives, which show there is no cause for alarm."

The government gave the green light to change Iran’s monetary unit from rial to toman in the Cabinet’s latest meeting on Wednesday, the approval of which by the parliament will lead to dropping one zero from the national currency.

On Friday, a deputy governor of the CBI confirmed that the move could entail a complete reprint of all Iranian banknotes.

 "If the decision is approved by the parliament, it is possible that minor changes will be considered when new banknotes are printed at the beginning of the next year (in March),” Akbar Komijani added.

Seif pointed to the longstanding and much-discussed dialogue between experts and officials alike surrounding the proposal of lopping three or four zeroes from the national currency. He said the proposal remains on the table, regardless of the Cabinet's recent decision and "should not under any circumstances be considered to be at odds with this matter".

He added that although Iran has reached a level of economic stability compared with last year, time is not yet ripe to lop off more zeroes from the currency and "it could be implemented in the next one or two years".

According to the CBI governor, changing the monetary unit is only a case of laws and regulations being tinkered to accommodate the "society's norms", to respect popular culture and provide mental ease to Iranians.

Toman has long been the currency of choice in daily transactions by citizens while rial (10 of which equal one toman) has been used as Iran’s monetary unit in official documents and budget statements. The new proposed plan effectively reverses the initial conversion from toman to rial established in 1932 and equates 10 rials with one toman.

Seif, who also heads the Money and Credit Council, said that is why when a regulation pertaining to the Central Bank Bill was being reviewed in the government, it included an article that stated that rial is the official monetary unit and equals 100 dinars.

"Therefore, the proposal was put forward to respect the overarching notion in society and based on that, the article was corrected in a way that now identifies toman consisting of 10 rials as Iran's official monetary unit," he said.

[screwball]

On Friday, a deputy governor of the CBI confirmed that the move could entail a complete reprint of all Iranian banknotes. 

 the proposal of lopping three or four zeroes from the national currency. He said the proposal remains on the table, regardless of the Cabinet's recent decision and "should not under any circumstances be considered to be at odds with this matter

"New banknotes will gradually be printed in toman instead of rial and while the old notes are still in circulation, they can be used simultaneously. The rest is not complicated and can be resolved through directives, which show there is no cause for alarm."

 "If the decision is approved by the parliament, it is possible that minor changes will be considered when new banknotes are printed at the beginning of the next year (in March),” Akbar Komijani added.

 

[screwball]

They have said both currencies could run simultaneously for 12 months, decision to remove three or four is still on the table and the whole plan is yet to be approved by the majlis, wait for Cbi directives and for this to go international with a single unified Currency..

[screwball]

By March less than 10 weeks away...

[markb57]

Now Scewball, I really appreciate you and others bringing the info here. With that said, I see the same nonsense and foot dragging as Iraq. I guess it's a middle east thing. After all, the govt officials are living real good while the rest of the country lives hand to mouth. Must be middle eastern mindset.

And now talking about changing currency and may or may not lop 0's...jeeze, just like Iraq. I have allot, at least for me, invested in both Iran and Iraq and am not selling out. 

ok, vent over and off the soapbox. I am having too many evil thoughts about these 2 countries....

[screwball]

• |
• 2016/12/11 21:46:51
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Iran Air to Buy Boeing Planes, First Such Deal in 37 Years 

 

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EghtesadOnline: Iran’s national carrier reached an agreement with Boeing Co. to buy 80 aircraft worth $16.6 billion, the first deal of its kind since 1979. 

The deal includes 50 737 MAX 8s, 15 777-300ERs and 15 777-9s, and was reached under the conditions of a U.S. government license issued to Boeing in September, the company said in a statement on its website on Sunday. The aircraft will be delivered over 10 years, the state-run Islamic Republic News Agency reported, citing Iran Air Chief Executive Officer Farhad Parvaresh.

The agreement is the first of its kind since the Islamic Revolution, according to Iran’s Ministry for Roads and Urban Development, and comes after most international sanctions on Iran were lifted as part of its nuclear deal with world powers. It is also weeks before the inauguration of U.S. President-elect Donald Trump, who has criticized the nuclear accord with Iran, according to Bloomberg.

The U.S. Congress is considering legislation that could stop Boeing’s sales to Iran by barring the Export-Import Bank from financing planes and preventing the Treasury from authorizing U.S. bank transactions for a sale. The bill was approved in the House last month and is awaiting Senate action. The Obama administration has vowed to veto the measure.

Boeing said in the statement the agreement with Iran Air will support nearly 100,000 U.S. jobs in the U.S. aerospace industry, with the first aircraft scheduled for delivery in 2018.

[screwball]

7 minutes ago, markb57 said:

Now Scewball, I really appreciate you and others bringing the info here. With that said, I see the same nonsense and foot dragging as Iraq. I guess it's a middle east thing. After all, the govt officials are living real good while the rest of the country lives hand to mouth. Must be middle eastern mindset.

And now talking about changing currency and may or may not lop 0's...jeeze, just like Iraq. I have allot, at least for me, invested in both Iran and Iraq and am not selling out. 

ok, vent over and off the soapbox. I am having too many evil thoughts about these 2 countries....

I know how you feel venting is good, I have daily battles not only with PTSD but also as you both these investments, I am in for the long haul and will wait for directives from Cbi and for the rate to change...

Edited December 12, 2016 by screwball

[screwball]

I have been invested in dinars for 14 years and Iran about 10 the similarities are incredible....so for me I am an all or nothing sort of investor!

[millionaire in training]

14 minutes ago, markb57 said:

Now Scewball, I really appreciate you and others bringing the info here. With that said, I see the same nonsense and foot dragging as Iraq. I guess it's a middle east thing. After all, the govt officials are living real good while the rest of the country lives hand to mouth. Must be middle eastern mindset.

And now talking about changing currency and may or may not lop 0's...jeeze, just like Iraq. I have allot, at least for me, invested in both Iran and Iraq and am not selling out. 

ok, vent over and off the soapbox. I am having too many evil thoughts about these 2 countries....

Hi Mark. I understand how you're feeling but keep in mind how complicated it is for countries to try and re-establish themselves from the way things used to be for them.

Im seeing things more clearer now than ever for both Iraq and Iran. It's been a very complicated process for them both but I can see we're coming to the end of this sooner than most people expect.  

Iraq is in process as we speak and Iran can't be left behind so just sit back and keep reading the articles with out worrying even if there are conflicting .....it's part of their plan.

Remember they will never let you know whats really happening. Or ....even when it's actually gonna happen.

"having too many evil thoughts about these 2 countries"  DON'T   These two counties currencies are about to change your life .    Think about that instead.  

Always feel free to vent.......thats what we're here for.......each other.    MIT  

[millionaire in training]

32 minutes ago, screwball said:

I have been invested in dinars for 14 years and Iran about 10 the similarities are incredible....so for me I am an all or nothing sort of investor!

Thats a long time.  Me since 2004. Feels like a lifetime ago. But I know this is gonna happen for us all. So I've waited patiently .

One day we will all be "SURPRISED"   

[screwball]

Well said MIT....

[screwball]

The government's decision to change the current Iranian currency rial to toman by lopping off one zero is expected to have a short-term negative impact on foreign tourists that will gradually fade away.

Seyyed Mojtaba Mahmoudzadeh, a professor at Allameh Tabataba'i University, said the effect will be temporary and the move will eventually give rise to positive outcomes in the long run.

"Foreign tourists who exchanged 1 dollar for 35,000 rials and got an impression that travel to Iran would be very cheap with their money, will now receive a smaller figure in return which will weaken their initial perception," he was quoted as saying by ISNA.  

The elimination of a zero from the unit will remove ambiguity about the national money, reduce tourists' confusion and facilitate calculations.

Mahmoudzadeh noted that like exports, tourism industry is dependent on the exchange rates rather than the monetary unit, and the plan will not have an effect on the number of inbound tourists. As for the exchange rates, the impact is minimal compared with other determining factors such as political and security conditions as well as publicity.

"In 2012, when the exchange rates grew and reached nearly 40,000 rials, the number of foreign tourists did not see a considerable increase because other parameters played a bigger role," he said.  

The decision to change the monetary unit was made while ratifying the Central Bank of Iran's bill during the Cabinet meeting on Dec. 7, which was chaired by President Hassan Rouhani.

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 the final approval. 

[screwball]

 

lose to half of all the assets of the Iranian banking system are non-performing and the governor of the Central Bank of Iran says his bank endeavors to recover these assets and return them to the lending cycle.

"More than 44% of all the assets of the banking system are sour assets that cannot be used for lending purposes. It is our goal to return these assets to the main cycle of banking activities and transform them into loans," Valiollah Seif was quoted as saying by Banker.ir.

Speaking during a visit to a private sector production unit in Fars Province, Seif announced that 120 trillion rials ($3billion at market exchange rate) worth of working capital loans have been doled out to businesses so far "and this process will continue".

The CBI chief said the central bank plans to allocate 160 trillion rials ($4 billion) worth of loans to 7,500 production units but considering the important role small- and medium-sized enterprises play in economic growth by "creating the grounds for economic development even in the most remote parts of the country", the CBI decided to keep providing capital to these businesses beyond that level.

By definition, enterprises run by 100 workers or less, and 50 workers or less are considered SMEs respectively, according to Iran’s Small Industries and Industrial Parks Organization.

In July, it was announced that 96% of the 88,000 licensed Iranian businesses are considered small- and medium-sized.

CBI officials have repeatedly emphasized the importance of bankrolling them.

"Our banking system has the capacity to distribute 4.5 quadrillion rials ($115 billion) worth of loans a year and the volume of all the loans handed out by the banking system last year equaled 4.1 quadrillion rials ($106 billion)," he said. "We predict that the number will reach 5 quadrillion rials ($127.87 billion) this year."

The CBI governor noted that provincial groups working to remove obstacles to production have played an effective role and pointed to Fars Province "and potentials that have been created in it" as a prime example.

Seif said the goal must be to create circumstances under which up to 90% of the assets of the banking system turn into loans that could be allocated to businesses and production units and "if that happens, we can deem the banking system to be effective".

[screwball]

Iran, Russia set for new era of cooperation

Signs are growing that Iran and Russia are preparing for a new era of economic cooperation in which energy — among other sectors — will have a central role.

Russia's Energy Minister Alexander Novak will meet Iran's Oil Minister Bijan Namdar Zanganeh on Tuesday to discuss ways to expand Iran-Russia ties in the energy sector.

Tehran is determined to take its cooperation with Moscow in the energy sector to a new level following the removal of sanctions against Iran earlier this year, ISNA reported.

Novak's visit to Iran would also follow a recent wave of energy projects awarded by Iran to global giants such as Total and Shell.

Officials in Tehran have underlined that the country is in talks with Russia's Gazprom and Zarubezhneft on the development of certain projects.

It is still not clear if either of the companies would win a deal during Novak's visit to the Islamic Republic.

Meanwhile, a major Russian trade delegation of around 600 businesspeople and officials arrived in Iran on Sunday for three-days of talks with their Iranian counterparts to explore ways to boost trade relations between the two countries.

The delegation, described as biggest ever to visit Iran from Russia, would include representatives from 200 companies involved in the energy, agriculture, banking, transportation, education, forestry and aviation.

During his stay in Tehran, Novak will also co-chair the 13th Iran-Russia Joint Economic Commission meeting with Iran's Minister of Communications and Information Technology Mahmoud Vaezi.

The two countries are expected to sign a series of agreements that include the construction of four units of thermal power plants in Iran's southern city of Bandar Abbas.

Trade between the two countries currently stands at below $2 billion. Both are determined to double this by the end of 2017.

[screwball]

600 business people.....that's unbelievable!

[pokerplayer]

7 hours ago, screwball said:

Changing Iran's monetary unit from rial to toman and the subsequent replacement of all banknotes with the new currency present no cumbersome challenge, the Central Bank of Iran's governor said.

"This measure [of renewing the banknotes] causes no problem and it does not seem to entail much cost either because if the proposal is approved by the parliament, current banknotes can be used until the last moment," Valiollah Seif said in a talk with Tasnim News website.

"New banknotes will gradually be printed in toman instead of rial and while the old notes are still in circulation, they can be used simultaneously. The rest is not complicated and can be resolved through directives, which show there is no cause for alarm."

The government gave the green light to change Iran’s monetary unit from rial to toman in the Cabinet’s latest meeting on Wednesday, the approval of which by the parliament will lead to dropping one zero from the national currency.

On Friday, a deputy governor of the CBI confirmed that the move could entail a complete reprint of all Iranian banknotes.

 "If the decision is approved by the parliament, it is possible that minor changes will be considered when new banknotes are printed at the beginning of the next year (in March),” Akbar Komijani added.

Seif pointed to the longstanding and much-discussed dialogue between experts and officials alike surrounding the proposal of lopping three or four zeroes from the national currency. He said the proposal remains on the table, regardless of the Cabinet's recent decision and "should not under any circumstances be considered to be at odds with this matter".

He added that although Iran has reached a level of economic stability compared with last year, time is not yet ripe to lop off more zeroes from the currency and "it could be implemented in the next one or two years".

According to the CBI governor, changing the monetary unit is only a case of laws and regulations being tinkered to accommodate the "society's norms", to respect popular culture and provide mental ease to Iranians.

Toman has long been the currency of choice in daily transactions by citizens while rial (10 of which equal one toman) has been used as Iran’s monetary unit in official documents and budget statements. The new proposed plan effectively reverses the initial conversion from toman to rial established in 1932 and equates 10 rials with one toman.

Seif, who also heads the Money and Credit Council, said that is why when a regulation pertaining to the Central Bank Bill was being reviewed in the government, it included an article that stated that rial is the official monetary unit and equals 100 dinars.

"Therefore, the proposal was put forward to respect the overarching notion in society and based on that, the article was corrected in a way that now identifies toman consisting of 10 rials as Iran's official monetary unit," he said.

 

Oh Oh, don't like the sounds of that 

pp

[gregp]

Sounds good to me. Both currencies will coexist and it's a gain in value. The term "lop" is used loosely. Thanks, SB.

[pokerplayer]

Boeing's $16B aircraft deal with Iran Air faces challenges

 

Mike Snider and Oren Dorell , USA TODAY 8:21 p.m. EST December 11, 2016

   

 

 

 

 

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Investors need to come to grips with the fact that Donald Trump is the "Negotiator-in-Chief" based on his Boeing and UTX maneuvers, said TheStreet's Jim Cramer. Boeing shares moved lower yesterday after President-elect Donald Trump tweeted that the government should cancel its order of a new Air Force One 747 jetliner, which he says could cost $4 billion. He also said the costs are "out of control." Video provided by TheStreet Newslook

(Photo: Hasan Sarbakhshian, AP)

Boeing has government approval to fill Iran Air's $16 billion aircraft order, but it may still be grounded by Congress.

And President-elect Trump, who has criticized the Iran nuclear accord that allowed the deal to take off, could eventually have a say, too.

The Chicago-headquartered Boeing said Sunday that it will sell 80 jetliners worth $16.6 billion to Iran Air. Boeing got approval to sell planes in Iran in September but had to wait for a license for the Iran Air deal from the U.S. Treasury Department’s Office of Foreign Assets Control.

This would be the largest business deal that a U.S. company had done with Iran since President Obama signed an executive order lifting sanctions against the country. That order came after Iran agreed to end its pursuit of nuclear weapons under an accord reached in July 2015 with the United Nations Security Council members — the U.S., Britain, China, France and Russia — and Germany.

USA TODAY

Trump slams Boeing deal for new Air Force One

 

But Boeing's deal could face opposition in Congress and the White House. “We will aggressively fight this deal in next Congress, though we probably won't even need new legislation to do it,” said David Pasch, communications director for Rep. Peter Roskam, R-Ill. “The incoming appointees at Treasury and State will no longer report to a White House willing to bend over backward and ignore national security concerns (in order) to keep Iran from walking away from the nuclear deal.”

In May, Roskam, along with fellow Illinois Republican Reps. Robert Dold and Randy Hultgren, sent a letter to Boeing asking the company not to do business with Iran until it renounces support for terror groups. Last month, the House of Representatives approved a bill that would prevent the Treasury Department from giving U.S. banks the licenses to help Boeing complete the transactions. Since Obama would likely veto the bill, it hasn't moved in the Senate.

"Congress will have a lot to say, particularly working in concert with an administration that has a fairly low view of this deal," Roskam told USA TODAY.

He also said the deal depends on financing. Any bank that would get involved “has to ask itself is it worth the reputational risk to be complicit with the world’s largest state sponsor of terrorism?”

Congressional opposition to the Iran nuclear accord has gained momentum with the victory of Trump, who has called the accord "the stupidest deal of all time." He and Vice President-Elect Mike Pence have suggested they will consider renegotiating the deal when they take office. Trump's transition staff did not respond to requests for comment.

Joe Lieberman, the former Independent senator from Connecticut who's now chairman of United Against Nuclear Iran, an advocacy group, said the Iran deal faces a hostile future in Washington.

While it's not clear Congress or the new Trump administration will try to overturn it, "there will at least be demands for stricter enforcement of the nuclear deal, an expansion of non-nuclear sanctions on Iran, and for companies — like Boeing — to cease efforts that reward the regime with lucrative business opportunities when it continues to be the leading state-sponsor of terrorism worldwide," Lieberman said.

Boeing itself has also been in the news recently with Trump's call for the cancellation of the manufacturer's deal to build the next Air Force One planes because of cost overruns on the project. "Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!" he tweeted last week.

Boeing, which also said the Iran deal will help support nearly 100,000 U.S. jobs, expects to begin filling Iran Air's shopping list, which includes 50 737s, in 2018. The planes will be delivered over a 10-year period, Farhad Parvaresh, the managing director of the Iran's Civil Aviation Organization, told Iran's official news agency IRNA on Sunday.

USA TODAY

Boeing signs deal to sell aircraft to Iran

 

Boeing isn't the only company looking to cash in in Iran. Competitor Airbus is also breaking into the market, and last week Royal Dutch Shell, the world's second-largest energy company, said it would begin developing oil and gas in Iran.

At United Against Nuclear Iran, a group that advocates against the normalization of business dealings with Iran, retired Capt. Michael Pregent advised against Boeing's sale due to the Islamic Revolutionary Guard Corps' use of "civilian airliners to support terrorism." A founding member of UANI's veterans advisory council, Pregent said, "It is inexcusable for Boeing to enter into business dealings with the regime when they are fully aware it is responsible for deaths and maiming of our men and women in uniform."

Before last year's nuclear accord to curtail Iran's nuclear program, the U.S. had not had diplomatic ties with the country since 1980. The year before a revolution overthrew the U.S.-backed shah of Iran and 52 Americans were held hostage for 444 days. The State Department had considered Iran as a “state sponsor of terrorism" for funding U.S.-targeted militant groups around the world, including Palestinian terror groups.

Follow USA TODAY reporter Mike Snider on Twitter: @MikeSnider.

 

 

 

 

 

 

 

 

 

 

 

 

 

[markb57]

these are 2 lines that concern me and sound like the Iraqi procrastination

He added that although Iran has reached a level of economic stability compared with last year, time is not yet ripe to lop off more zeroes from the currency and "it could be implemented in the next one or two years".

[climber7]

41 minutes ago, markb57 said:

these are 2 lines that concern me and sound like the Iraqi procrastination

He added that although Iran has reached a level of economic stability compared with last year, time is not yet ripe to lop off more zeroes from the currency and "it could be implemented in the next one or two years".

I hear you

So tired of all the crap in these investments

Just want off this ride either way--whether in our favor or not 

Hate being jerked around 

[climber7]

Oh ya,

And if there's any gurus who "know better" and know this is all a scam--there's a special punishment waiting for them 

[markb57]

these countries want the world to help them and constantly be bailing them out but the only ones benefiting are the govt officials. And they're laughing all the way to the bank. I said I was having evil thoughts about these countries in an earlier post. I'm to the point of wishing the US would just go ahead and nuke these countries out of existence. just make their countries smoking holes. these people are not worth the air they breath. pointless, I know but thats how I feel.

[md11fr8dawg]

Exactly Mark, what have these a-holes ever contributed to the world over the course of history, especially recent history. Most of these goat kissers are still living in the 7th century.

[Freedomwish]

Guys, indeed this has been a very, very frustrating ride for over a way long time (about 8 years for me after a very nasty divorce) that now I've been having a hard time switching liquor during my off hours LOL 

It's just that, this could go somewhere or......nowhere at all.   I believe some if not most of us must be ready and prepared for the worst, or of course hopefully for the better - as the same old saying always went, "Don't put too much emotion in this - Only put in what you can afford to lose"........yeah I know, I know...I myself would feel the pinch real tight should this thing flop - so I've been trying to be mentally and emotionally prepared should both the Dinar and Rial fail & flop all together.  I have put in a GOOD amount into this wild ride but will stay comfortable on what I have and won't put in anymore (unless yeah, it'll pop and we can double dip haha ), and if it'll become a loss, we have to be ready to accept that.  This ride indeed isn't for the faint of heart.  I feel we must keep a level head and stay grounded as much as we possibly can even though some exciting articles coming out as of late all over the place.  And it's just that of what they are, exciting articles - both positive and negative.  

We just have to take them for what they are worth and ride along with it, definitely hoping for the best. 

So here's my little confession to my DV peeps - I've been whispering to myself lately, especially when I wake up nearly every morning staring at the bathroom mirror just before I start brushing my teeth..........  "By around March 20, 2017 - anything can happen or nothing at all. Just be ready."

Best of luck to us all, yup! 

 

 

Edited December 12, 2016 by Freedomwish

[markb57]

all good words. one thing that has always made me wonder is how these other countries and entities can give billions of dollars to Iraq, over and over, and never ask for some kind of accounting of where the funds went. AMAZING TO ME.