Iranian Rial

[screwball]

Like I said wait for Cbi directives, for it to be internationally traded on the forex and for the rate change, until then believe what you want to believe, and only half of what you read...

[screwball]

day, December 12, 2016

Iran to Launch Tourism Ideas Bank in Feb. 2017

 

An innovative scheme by Tourism Sustainable Development Institute, Iran's first Ideas Bank will soon become operational, creating a safe place for the submission of innovative ideas on small businesses that could contribute to tourism development.

Worldwide, ideas banks are widely available and online shared resources where people post, exchange, discuss and polish new ideas. Some of these banks are used for developing new inventions or technologies.

Given the current Iranian government's focus on tourism industry development, talented Iranians deserved to have a place to record their unique ideas with the required security.  

During the First National Conference of Innovative Tourism Businesses in Cyberspace held on Dec. 9 at Tehran's University of Science and Culture, some 44 idea developers presented their ideas on tourism mobility, transportation, accommodation, hoteliering, attractions, tourism support services, health tourism and paratour (services specialized for the disabled and the elderly).

During the event, the ideas were put to a public vote, as is conventional in startup events, and eight plans were selected as the best ideas. The finalists were once again vetted by the jury team and three winners were announced.

The first prize went to "Toot Farangi", an Android-based application presenting the exact location of public restrooms. "Tool Rent" was the second best app, facilitating finding and renting expensive tools not-so-often needed by foreign tourists.

"Tour Food" was the third prize-winning application focused on finding local food services using GPS.

"Travelers not only will be able to easily find local restaurants and cafes, but would also become acquainted with Iran's traditional foods," said Parvaneh Parchekani, director of TSDI.

The conference was an opportunity for the selected ideators to be recorded in the newly-designed Ideas Bank to be introduced to sponsors and entrepreneurship centers.

They will receive useful instructions from experts in information and communication technology, entrepreneurship and tourism to develop their ideas as operational schemes, ISNA reported. The bank will officially become operational in February 2017.

"To be recorded in the Ideas Bank, enthusiasts and idea developers could receive a registration permit after going through profiling and selection processes overseen by experts," Parchekani said.

The event's organizers believe over 90% of tourism-related jobs are run by small businesses. Therefore, such opportunities offer a short cut to create innovative jobs and turn ideas into businesses, which contribute to tourism development.

[screwball]

 

1. Travel

Monday, December 12, 2016

Electronic Departure Tax Payment 

 

Apilot plan on electronic departure tax (a charge levied on Iranians traveling abroad) has been launched at Tehran's Imam Khomeini International Airport. Devised in cooperation with the Police Department, the plan is aimed at facilitating the speedy payment of departure tax. Reza Baqeri-Asl, the deputy head of Iran Information Technology Organization, explained that passengers need to submit their passport or identification card number to the related system and pay the fee with debit cards.  "The identification card number is recorded in the tax system as a security measure, preventing any kind of infringement and abuse," Mehr News Agency quoted Baqeri-Asl as saying. The scheme is in line with the government's efforts to facilitate travel from and to the country. The authorities announced that if the plan turns out to be successful, it would replace the exit tax payment process currently in place nationwide by next month.

[WheresmyRV?]

2 hours ago, markb57 said:

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.

Exactly what I am thinking Mark, it just blows my mind.  My April they will be begging for more money, even when oil will be at 85 bucks a barrel by then. 

[screwball]

Official: JCPOA, good chance for absorbing finance, investment opportunities

Kermanshah, Dec 12, IRNA – Deputy for the Ministry of Economic Affairs and Finance Hossein Mir Shojaian said that the era after the signing of the Joint Comprehensive Plan of Action (JCPOA) provides a good chance for absorbing foreign finance contracts and financial incentives.

 

He said the Islamic Republic of Iran enjoys huge and diverse chances and potential for investment.

He noted that as world academic circles and media like the “Economist” are admitting Iran will be experiencing a five percent economic growth with an inflation rate falling below ten percent in the coming years.

He described Iran as a big market attractive to foreign investors and said it enjoyed an entrepreneurship rate equivalent to that of the US and higher than France which is regarded as a good chance for investors.

1424**1

[screwball]

The news last week that Iran is switching its national currency to toman was more than just a big announcement; it also polarized opinion and exposed the apparent disharmony among policymaking bodies.

The decision to change the monetary unit from rial to toman and thereby remove one zero from the national currency was announced, as the Cabinet approved parts of the Central Bank of Iran Bill before sending it to the parliament.

Ironically, this is the same bill that the CBI had earlier published on its website, asking the public to comment on measures meant to empower the otherwise rubberstamp body. But as everyone could see at the time, no article addressed currency revaluation.

In fact, the bill specifically described Iran’s currency as rial, deeming it to be equivalent to 100 dinars. However, what happened between the drafting of the bill and its journey to President Hassan Rouhani’s desk is anyone’s guess.

Nevertheless, one thing is for certain and that is the expectancy of the announcement that caught many by surprise.   

In trying to dispel the ensuing obfuscation, Seif took to the messaging app Telegram–a medium popular with Iranians–announcing in his official channel that the removal of one zero from the rial was not a “revaluation” or “redenomination” in the true sense of the word.

What Seif and his first deputy made clear in the coming days was that the currency switch was just a gesture made in solidarity with the prevalent “norms of the society” and a respect for how the average people calculated their daily transactions.

Indeed, the rial had for long become a relic of the past. Growing inflation over the decades had rendered the rial all but obsolete among ordinary citizens, but its continued use by the government and state bodies had driven a financial wedge between the government and the people. Therefore, as far as “respect” for public opinion is concerned, the decision is well-grounded.

  Not-So-Primrose Path

The ease and convenience that the advent of toman will bring to financial affairs and accounting procedures, however, should not blind the government to the many challenges that the plan entail.

First and foremost is the timing of the initiative. Although the government has made many achievements worthy of commendation, analysts warn that the economy is still far from stable.

Achieving a single-digit inflation after nearly three decades, helping remove the nuclear sanctions, forging a relative recovery in oil price and ditching the populist policies of the previous administration allowing for binge borrowing from the central bank, praiseworthy as they are, do not necessarily warrant a full-blown currency revaluation.

The experience of countries that have trodden the same path shows that success comes only when a country has it all together, otherwise it would be at best an exercise in futility.

While the government mulls such a measure, it should bear in mind that the country’s ailing banking system is yet to heal and the economy as a whole still suffers from a lack of transparency. Youth unemployment remains alarmingly high and GDP growth is hardly satisfactory. Removing one or more zeros will do nothing to remedy these problems.

If the government is determined to go ahead with a currency revaluation, it should be mindful of the cumbersome cost it will impose. According to one estimate, upending the current monetary regime, including introducing new banknotes and phasing out the old ones, would cost around 520 trillion rials ($16.1 billion).

The CBI governor has responded by saying that a return to toman–the unit was the official currency until 1930s–would mean that the existing bills will be used “until the last moment”. But since new banknotes would have to be printed anyway, why not take the bull by its horns and initiate a proper currency revaluation by removing as many zeros as possible once and for all?

While the debate is raging and the fate of the rial hangs in the balance, experts are hoping that the bill will gain in strength in the parliament when lawmakers are expected to debate it in the coming weeks. However ailing the rial might be at the moment, a premature death bodes ill for any currency that overtakes it.

[screwball]

Ironically, this is the same bill that the CBI had earlier published on its website, asking the public to comment on measures meant to empower the otherwise rubberstamp body. But as everyone could see at the time, no article addressed currency revaluation.

In fact, the bill specifically described Iran’s currency as rial, deeming it to be equivalent to 100 dinars. However, what happened between the drafting of the bill and its journey to President Hassan Rouhani’s desk is anyone’s guess.

Nevertheless, one thing is for certain and that is the expectancy of the announcement that caught many by surprise.   

If the government is determined to go ahead with a currency revaluation, it should be mindful of the cumbersome cost it will impose. According to one estimate, upending the current monetary regime, including introducing new banknotes and phasing out the old ones, would cost around 520 trillion rials ($16.1 billion).

But since new banknotes would have to be printed anyway, why not take the bull by its horns and initiate a proper currency revaluation by removing as many zeros as possible once and for all?

 

 

[screwball]

You can expect this to be hotly debated....from 2012

Iranian currency to lose four zeros

29 May 2012 08:45 (UTC+04:00)

•  
•  
•  
•  
•  

 

Azerbaijan, Baku, May 29/Trend M. Moezzi

Iran could carve away four zeros from its national currency and rename it by next spring.

The timeline was given by Mahmoud Bahmani, who heads the Central Bank of Iran, the Iranian Students' News Agency (ISNA) reports.

The Central Bank has presented its plan to eliminate four zeros from its currency unit, the rial to the Majlis (parliament). If the Majlis approves the bill in the first half of this year (Iran's solar year ended began on March 20), the new currency could come into circulation next spring, Bahmnai said.

Steep inflation, the rial's sharp devaluation against other currencies and the resulting bookkeeping problems are the reasons for the proposed change.

The rial's name will also be changed, if approved by the Majlis. The Central Bank has set up a website to seek suggestions for a new currency name. Daric, the currency unit used during the Achaemenid dynasty, toman and noor are some of the names suggested so far.

[screwball]

Tuesday, December 13, 2016

Toman, Rial and Too Many Zeroes

 

Morteza Mirmohammadi

.

.

Business & Markets Desk

Iran's currency may be redenominated to reflect the over three-decade change in day-to-day financial lingo.

The government sent a bill to parliament last week to change the currency's denomination from rial to toman, and drop one zero in the process. The move, if approved by the parliament, will ease financial transactions, though some say the bank should cut out more zeroes to make it worth the hassle.

To avoid confusion, we must delve a little into history. The rial has been Iran's official unit of value since 1973, though its inception and usage date back to 1798. Today all government and business data are in rials.

The toman, on the other hand, dates back to the Mongol conquest of Iran in the late 1200s and was in use as a super unit of currency long before the rial. It equals 10 rials.

Both units were large denominations at first, but years of inflation and economic turmoil has rendered both obsolete. To get the picture, at the onset of the Islamic Revolution in 1979, each dollar was worth 70 rials. Today, the rial has devalued so much that a dollar can buy 39,000 rials in Tehran. Quite a bit of notches in the belt there!

> Honoring Norms

Today a pack of gum costs 10,000 rials. But the real inconvenience comes with big numbers and bank transactions. Just take in the fact that this year's general government budget, bar state-owned companies, is 3,711,000,000,000,000 rials. Now you can say that's 3.7 quadrillion or 3,711 trillion rials—though for some odd reason Iranian politicians and media prefer 3,711 thousand billion rials.

This makes errors too easy and commonplace for both ordinary people and accountants, especially when they talk, it's tomans, but they must write rials. The current Cabinet proposal deals with this disparity.

The government proposal is less about shaving zeroes off banknotes and more an acknowledgment of reality, as the governor of the Central Bank of Iran admitted last week.

"From the introduction of the rial in the country's monetary and banking law, especially in the past decades, due to the cumulative effect of inflation, the rial has been dropped from daily financial transactions and substituted by toman," ILNA quoted CBI Governor Valiollah Seif as saying.

The rial, while the official unit, is rarely used in daily transactions. It has been so for over three decades. So when you go shopping the price tags are in rials, but when you ask the sales clerk for your bill, they will quote it in tomans.

"The Cabinet decided to change the country's currency from rial to toman to honor social norms and adjust to reality," IRNA quoted CBI Deputy Governor Akbar Komijani as saying.

While the CBI says the measure is focused on streamlining money circulation and accounting, the currency re-denomination is only possible because of subsiding inflationary pressures.

Seif has reigned in inflation during his tenure.

Consumer-price growth slipped below 10% this year from over 40% two years ago. The currency overhaul, for years talked about, is now possible and will signal a reboot of the economy in an age where the central bank has gained independence.

> Why Not More?

Seif said the CBI is doing separate studies for shaving more zeroes off the currency and that will be done at a later date. If we are going to lop more zeroes later, why not do all of it at once?

"The administration's decision to drop one zero is not the right thing to do. It entails all the sweat and tear of lopping more zeroes without fulfilling its goals," Tahmasb Mazaheri, a former central bank governor and economy minister, was quoted by our sister publication Donya-e-Eqtesad as saying.

To carry out the plan, all the accounting systems in Iran need adjustment, from corporations to stock markets, and also, perhaps the most costly, banknotes, said Abbas Vafadar, a member of Iranian Association of Certified Public Accountants' High Council.

Vafadar added that the project needs a revision in banknotes so people can carry more value with less notes.

Today the largest banknote is the 100,000 rial that equals $2.56. So in Iran, to carry a $100, you need 40 banknotes, making carrying large amounts of cash a real nuisance.

But the CBI has been less than transparent about what it will do to the banknote in circulation.

Seif said from March onward, the bank may start swapping banknotes. Again, why not do all of this at one go?

Regardless, the currency reorganization is a positive move, though only in terms of image or PR. As economists know, introducing a new currency format will have zero direct impact on the economy unless it is shown to be part of a more serious and sustainable effort to improve economic management and the business climate. Otherwise, it will be just a nice cosmetic makeover.

opinion piece

[screwball]

Flag carrier Iran Air is at the “very final stage” of formalizing a deal with Europe’s Airbus, having signed a $16.6 billion deal with Boeing earlier on Sunday, an unidentified Iran Air official told Reuters.

The Airbus deal, which is expected to involve a first batch of 50-60 jets, should be completed in the “next couple of days”, the official said.

Airbus delegates have arrived in Tehran for talks aimed at finalizing a deal to sell around 100 planes, deputy minister of roads and urban development, Asghar Fakhrieh Kashan said on Monday.

The representatives of the European aerospace giant arrived on Sunday just hours after Iran Air concluded the Boeing deal.

“An Airbus delegation has arrived in Tehran,” said Fakhrieh Kashan.

“We have started negotiations and if there are no problems, we will sign the agreement within a week for the purchase of around 100 planes,” he told AFP.

The two deals follow an intense final flurry of negotiations between Iran and western planemakers to formalize provisional contracts announced earlier this year.

The deal between Iran Air and US planemaker Boeing includes 50 narrow-body 737 MAX aircraft and 30 long-haul 777s, split equally between the 777-300ER, which is badly in need of an order boost, and the 406-seat 777-9, which is under development.

Also closing in on a deal to renew Iran’s aging fleet, kept going by smuggled or improvised parts after decades of sanctions, European turboprop maker ATR said it had received US approvals needed to finalize the sale of up to 40 aircraft.

The Iranian official said the Boeing deal was subject in part to further agreements on financing, but added that money from the deal would not pass through the US financial system.

Financial sources said Boeing has a financing plan for 15 777-300ER jets, which are expected to be delivered from 2018, but the rest of the financing may still have to be negotiated.

The Boeing contract, the biggest Iran-US deal since Iran’s Islamic Revolution in 1979, clears a major technical hurdle toward implementing last year’s pact between Iran and world powers to reopen trade in return for curbs on Iran’s nuclear activities.

However, political opposition could yet threaten a deal that would provide a welcome boost to Boeing’s order book after a year in which it has lagged behind rival Airbus.

  Boeing Pitches for US Job

“Today’s agreement will support tens of thousands of US jobs” associated with the production and delivery of the planes, Boeing said in its news release following the deal.

The intended recipient of Boeing’s message clearly seemed to be president-elect, Donald J. Trump, the New York Times reported.

Its carefully-worded statement is emblematic of the tightrope that America’s biggest exporters are walking amid his threats to shake up trade policy and undo the nuclear accord signed by the outgoing administration with Iran. That agreement lifted the American sanctions on Iran, making Boeing’s jet deal possible.

“There’s an emerging pattern of the United States turning its economic back to the rest of the world and that could be greatly damaging to the major export players like Boeing,” said Richard L. Aboulafia, an aerospace analyst.

Boeing and other export-driven firms, while fearful of Trump’s rhetoric, are hoping to make the case that they are exactly the types of companies that Trump should embrace.

Boeing, based in Chicago, is the nation’s top exporter in terms of the value of the goods it sells, which include midsize and giant airliners.

Sales of its jets have long been a part of American diplomacy, with foreign buyers having to decide whether to deal with Boeing from the US or Airbus from Europe.

Boeing, which employs about 150,000 people, makes most of its parts in the United States and exports most of its products, bringing in cash from overseas.

 

one must ask what have they been waiting on?.....

[screwball]

Iran, Kazakhstan call for lifting banking, visa barriers

Tehran, Dec 12, IRNA – During The 15th session of the Joint Commission of Economic, Trade, Scientific, Technological, and Cultural Cooperation between Iran and Kazakhstan, Iranian and Kazakh governmental and private sector activists urged removal of banking and visa waiver problems.

 

Head of Iran-Kazakhstan joint commercial council of the 15th joint commission said that the council aims at introducing economic partners, removing economic problems, creating business environment for small and medium-sized enterprises.

'We have good investment opportunities and trade exchanges in engineering services, agriculture, construction and energy sectors with Kazakhstan but we are facing major problems in visa and banking system', he added.  

During the event, the Managing Director of Ministry of Health and Medical Education for International Affairs Mohsen Asadai Lari said that Iran and Kazakhstan had previously cooperation in health system, drug, medical equipment and health tourism.

The event was held on December 10-11 in Tehran, Iran.

[screwball]

Official: JCPOA, good chance for absorbing finance, investment opportunities

Kermanshah, Dec 12, IRNA – Deputy for the Ministry of Economic Affairs and Finance Hossein Mir Shojaian said that the era after the signing of the Joint Comprehensive Plan of Action (JCPOA) provides a good chance for absorbing foreign finance contracts and financial incentives.

 

He said the Islamic Republic of Iran enjoys huge and diverse chances and potential for investment.

He noted that as world academic circles and media like the “Economist” are admitting Iran will be experiencing a five percent economic growth with an inflation rate falling below ten percent in the coming years.

He described Iran as a big market attractive to foreign investors and said it enjoyed an entrepreneurship rate equivalent to that of the US and higher than France which is regarded as a good chance for investors.

1424**1771

[screwball]

Minister: IranAir-Boeing agreement emphasized need to protect JCPOA

Tehran, Dec 12, IRNA – Iran Minister of Roads and Urban Development Abbas Akhoundi has said the signing of a contract between IranAir and US Boeing once again emphasizes the importance of protecting the achievements attained in Iran nuclear deal – known as JCPOA.

 

The minister made the remarks in a statement issued on Sunday after IranAir and Boeing signed a contract for the purchase of 80 Boeing aircraft. 

Following is the full text of the minister's statement: 

'Undoubtedly, today is a historic day with potentials for dramatic effects on Iran's Aviation Industry and even more significantly, for the security of Iran, the region and the world. This contract, signed between IranAir and Boeing today after 41 years sends a clear message to the world that by signing this contract, in spite of all warmongerings of Israel and ISIS forces and their allies in the region, the businessmen and entrepreneurs particularly in the transport industry conveyed to the world the message of peace, security and development of humanitarian relations as well as actions based on a win-win policy.

'The signing of this contract, in the current context in which the Joint Comprehensive Plan of Action (JCPOA) has been doubted in the political arena, once more emphasizes the importance of protecting the achievements attained.

'We hope that despite all the transformations in the US Administration happening in the near future, the US would honor its commitments, since these are also what US businessmen demand of their policy-makers.

'We hope that the US political society has reached a level of maturity and accountability for creating an environment determined to prove to the world that we can secure peace through 'dialogue'.

'Today is historic for Iran’s Aviation Industry and we have taken the first step for the modernization of the aircraft fleet. The purchase of 80 Boeing Aircrafts in addition to 100 Airbus Aircrafts and 20 ATRs, which will be finalized soon, indicate our strong determination for modernizing Iran’s aircraft fleet.

'In this regard, the basis of our action is to make the most of Iran's comparative advantages, increasing competitiveness in the aviation industry and regaining Iran's share of the regional and global aviation industry. To achieve this goal, our policy is commercial competition at the international level through increased efficiency and better services to Iranians and the people of the world and to gain their satisfaction.

'The total number of purchased seats through this contract equals to 50,000; twice more than all seats in the current aircraft fleet combined. This is the first step for the structural renovation of IranAir (Homa). We will soon restructure IranAir financially and legally; offering its shares in Tehran Stock Exchange or in international stock markets upon obtaining necessary licenses.

'This contract with Boeing is estimated to create more than 8000 job opportunities in the aviation industry, including flight attendant, piloting, technical, engineering and maintenance careers. Moreover, tens of thousands of indirect jobs would be created in departure and destination cities as well as Iran's remote cities.

'We believe this is a fundamental strategy to strengthen Iran's economy against national and international shocks.

'To conclude, I would like to thank IranAir and Civil Aviation Organization managers and all of their technical, legal and commercial experts as well as my Deputy in International and Investment Affairs, who has brought this historic contract to fruition.

'Also, I would like to sincerely appreciate the cooperation of senior managers and experts of the Ministry of Foreign Affairs, Ministry of Economic Affairs and Finance, the Central Bank of Islamic Republic of Iran and Iran's Management and Planning Organization.

'Finally, I would like to acknowledge the guidance and support of the President, Dr. Rouhani, who had been with us throughout this process.'

9341**1420

[screwball]

Senior MP calls for enhancing of banking cooperation with Russia

Tehran, Dec 13, IRNA – Head of Iran-Russia Parliamentary Friendship Group Ramezan Ali Sobhanifar called for facilitating banking and customs cooperation between the two countries.

 

'Facilitating banking and customs relations between the two countries is taking place within the framework of boosting of bilateral ties between the two countries,' Sobhanifar said in a meeting a member of Russia-Iran Parliamentary Friendship Group Igor Marozouf,' Sobhanifar said on Monday. 

Sobhanifar pointed to good relations between Iran and Russia, and said, 'Strengthening Iran-Russia relations as two influential and important countries will benefit the two countries' nations and governments.' 

He went on to say that the Iranian parliament, specialized commissions, the parliamentary friendship groups are ready to render any type of assistance to the development of the two countries' relations in all areas. 

The Russian lawmaker, for his part, voiced his country's interest in the expansion ties between the two countries.

2050**2050

[screwball]

JCPOA great time to boost ties with Iran: Indonesian president

Jakarta, Dec 12, IRNA – President Joko Widodo of Indonesia described Iran’s landmark nuclear deal plays a significant role in improving Iran’s relations with other countries including Indonesia.

 

Commenting on the historic nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA) which was signed in 2015 between Iran and the world six major powers and led to lifting of unjust economic sanctions against Tehran, President Widodo said the JCPOA is a “momentum” which has “significant implications on improving relationship especially economic relationship and is a great time for readiness of both countries' business communities to boost economic cooperation.”

He made the remarks in an exclusive interview with IRNA prior to his upcoming visit to Iran which is to take place on December 14.

The visit aims at increasing cooperation between the two countries in the fields of oil and gas and Iran's investment in Indonesia refinery sector.

The full text of his interview with the Iran’s official News Agency follows:

Mr. President thank you so much for giving us the opportunity to have your point of view as you are about to fly to Iran. Besides, historical relationship and having much in common between Iran and Indonesia, we also have the same challenge to cope with natural disasters which on recently occurred in Aceh. We offer our deep condolences to the victims in the earthquake, and extended our sincere sympathies to the bereaved families and those injured. 

1 – How do you evaluate historical relationship between Iran and Indonesia and what are your plans to expand cultural, economic and political cooperation between two countries? 

A: Indonesia and Iran have enjoyed longstanding and good relationship based on mutual understanding and beneficial partnership. Both countries have majority Muslim population and share common views on Islam and bilateral relationship between two countries has always been increasing since the establishment of diplomatic relationship in 1950. High frequency of exchange of visit among high level officials and support in various international organizations


2 – Due to imposed western sanctions, trade relationship and economic cooperation between Iran and Indonesia were decreased in the past years. Since these sanctions have been lifted, how do you see the relationship and cooperation between Iran and Indonesia in the future?

A: We want more economic and trade ties. The removal of sanctions has significant implications on improving relationship especially economic relationship and is a great time for readiness of both countries' business communities to boost economic cooperation, after the removal of the sanctions. This momentum will further strengthen bilateral cooperation particularly on trade and energy sectors. 

3- Iran and Indonesia have numerous opportunities to cooperate; your trip to Iran is a great chance to discover Iran’s various potential in different areas such as engineering, oil and gas, energy and trade among others. How your government support Iranian companies to be benefited from existing opportunities in Indonesia? 

A: The government is committed through economic reform policies to enhance potential business in Indonesia and Indonesia is looking for direct investment in various sectors pursuant to the prevailing national regulations. I would like to invite Iranian business to invest in Indonesia and our relevant chances would be more and we try to facilitate them to make business in Indonesia like in infrastructure, power plant and also in oil and gas business we can work together.  

4 – Joint investment and banking interactions are among main facilitator to boost relationships between two countries. Sanctions made some barriers to such facilitators, has any measure done to remove such barriers?

A: I encourage banking sector to find immediate solution to remove those barriers. We want to improve the investment climate. 

5- Beside to G to G relationship, people to people interaction and cooperation play an important role in boosting the relationship between two countries. Despite a long-term historical relationship and good mutual understanding between Iranians and Indonesians, it seems that people too people relationship has been reduced in the past few years, to enhance these relationship what need to be done? Can visa revocation be an effective measure to this end?  

A: We need to enhance the interaction among our people help to promote mutual understanding within Iran and Indonesia particularly through cooperation and power sectors. We want to increase tourism. We are working on that. Regarding visa revocation I will ask my minister.
6- Some Islamic countries in different regions face with terrorism and extremism activities. Iran and Indonesia both believe in moderation. How these tow country can join together to stop such trouble fuelling with outsiders interventions? 

A: You know that Indonesia as the largest world Muslim country and Indonesia opposes any form extremism, violent and we take a comprehensive approach in fighting extremism and terrorism. We have
hard power with law enforcement and legislation and also support with religious and cultural approaches. My government continues to cooperate with Islamic organizations such as Nahdlatul Ulama as a big Islamic organization and also Muhammadiyah also the biggest Islamic organization in Indonesia. And Indonesia will always cooperate with all countries to fight terrorism through the exchange of information, intelligence exchange and cooperation. We also play an active role in international forum such as UN Global counter-terrorism strategy, and Global counter-terrorism forum.  

7 – Regional interaction is an important way of improving cooperation, as a member of The Economic Cooperation Organisation (ECO) and Association of Southeast Asian Nations' (ASEAN) Treaty of Amity and Cooperation (TAC), how Iran can assist to enhance the mutual cooperation between Association of Southeast Asian Nations (ASEAN) and ECO? 

A: Iran can play significant role in intensifying dialogue between ECO and ASEAN in many area and at many level and would like to encourage both regional organization to reintegrate plan of action for concrete operation especially in economic front.  

8 – Most of political and religious leaders of Indonesia focus on Islam of Indonesia or Islam Nusantara, which has grown in the countries from many years ago, how do you think Islam Nusantara can be useful to solve current problems of Islamic world? Please elaborate it? 

A: Islam is a religion of peace. We usually say Islam is 'رحمه للعالمین' religion that means Islam is the religion of blessing for all mankind. Islam does not only belong to Indonesia. Islam belongs to the World. Indonesia has worked closely to conquer any form of extremism and to overcome misperception and misunderstanding of Islam to increase more people to people contact and to promote mutual understanding and it is very important.  

9- Indonesia has always supported peace and provided big number of peacekeeper forces and mediates some regional and international issues. The country also calls for changing in UN Security Council structure, so what kind of practical measures have been done to fulfill these desires? 

A: As mandated by our 1945 constitution and as an important element of our foreign policy we have launched a vision of 4,000 peacekeepers by 2019 through a road map to achieve this vision we are currently deploying more than 2,700 peacekeepers in 9 different UN peacekeeping nations around the globe. And sending these peacekeepers is a part of our commitment to maintain international peace and security and it would serve as solidarity of our candidature as a non-permanent member for UN Security Council for 2019 until 2020.  

10 - On the eve of your visit to Iran, what is your message to Iranian people who love eternal peace and support friendly relationship with all countries around the world? 

Indonesian and Iranian people share common values who love peace, who love friendly relationship and act upon that concrete operation for the prosperity of these people and contribute for peace of the region and world as a whole. 

**241**1394

[screwball]

South Korea has been, in recent years, one of Iran's main trade partners.

Yet, up until last year, the East Asian country had the upper-hand in bilateral trade balance with the Islamic Republic, as it exported $3-4 billion worth of goods to Iran annually.

Iran's exports to South Korea topped $1.39 billion for the March 2011-12 fiscal year.

Based on figures released by the Islamic Republic of Iran Customs Administration, however, during the eight months to November 20, 2016, Iran's non-oil exports to South Korea saw a sharp rise and exceeded $2.14 billion, 16 times as much compared to the whole of last year.

This is while imports from South Korea decreased to almost the same amount during the eight-month period.

Among the reasons for this substantial increase in Iran's exports, according to experts, are the lifting of economic sanctions against Tehran over its nuclear program, the landmark state visit by South Korean President Park Geun-hye in May and the increased activity of Iranian private sector in the Korean market, according to an article published by Persian weekly Tejarat-e Farda.

Due to the ratification of her impeachment proposal, Park's presidential powers and duties have been suspended since December 9, 2016, and Prime Minister Hwang Kyo-ahn has assumed those powers and duties as acting president.

> Benefits of Park's Visit

"Iran-South Korea commercial ties during the sanctions period decreased by over 60%, under the pressures of western sanctions. The Tehran visit by South Korean president, who was accompanied by a 236-strong delegation, had a significant effect for rebuilding economic ties between the two countries," secretary-general of Iran-South Korea Commercial Council, Pouya Firouzi, said.

The visit–the first by a South Korean president in more than half a century–represented South Korea’s efforts to tap into business opportunities in Iran.

“I believe Iran can become a land of opportunity for many South Korean firms,” Park told reporters on a plane back to Seoul.

“I will make efforts to create the second Middle East boom,” she was quoted as saying by The Korea Times.

During her visit, the two countries signed dozens of preliminary deals that could lead to contracts worth tens of billions of dollars. Seoul hopes the signed memoranda of understanding could pave the way for South Korean companies to eventually win massive infrastructure projects underway in Iran.

South Korea’s presidential office has described the MoUs as the “biggest-ever economic accomplishment”.

The Korea Electric Power Corporation opened an office in Tehran in May with a visit by KEPCO CEO Cho Hwan-eik, one of the delegates on the mission.

KEPCO signed 10 business agreements, including four major electricity infrastructure projects, with Iranian counterparts such as the Iran Power Generation and Transmission Company.

The Korea Shipowners’ Association and Shipping Association of Iran signed a memorandum of understanding to form a taskforce to expand direct shipping between Asia and the Middle East. Member companies of the associations are expected to form an alliance.

Incheon International Airport also signed a memorandum of understanding with Tehran’s Imam Khomeini International Airport. The two are expected to send delegations on a regular basis to share information on airport operations, aircraft management, development of infrastructure and co-marketing projects.

Woori Bank launched a Tehran office on May 2. It is the first South Korean bank to set up its office in Iran. After economic sanctions on Iran were lifted in January, Woori Bank sent experts to research the Iranian market and gained the approval of the Central Bank of Iran on April 12 to open an office in Tehran.

The Tehran office is not capable of banking operations. It will collect market information and connect already established branches of Woori Bank in the Middle East in Dubai, the UAE, and Bahrain.

The bank also signed a business partnership with Bank Pasargad, the second-largest bank in Iran, to boost bilateral trade, share information about local markets and provide financial services.

Last but not least, the Islamic Republic of Iran Railways signed a memorandum of understanding with Hyundai Rotem on May 3 for the supply of 150 diesel multiple-unit cars worth $260 million by the South Korean rolling stock manufacturer to IRIR. The DMUs are to be used on routes covering 960 km, Railway Gazette reported.

Firouzi believes Seoul can play an important role in helping Iran enter the international market since it has free trade agreements as well as preferential trade agreements with many countries.

Iran, with access to the 400-million market of the region, can be a hub for the redistribution of Korean goods.

"There are many untapped production capacities in Iran. This provides the Koreans with ample opportunities for starting joint productions with Iranian partners, which will carry with them considerable added-value for the two sides," Firouzi said.

> Iranian Private Sector Role

Komeyl Tayyebi, professor of economy at Isfahan University, believes Iran's satisfactory trade performance is largely due to successful marketing on the part of the Iranian private sector.

"There is mutual understanding between Iranian and Korean governments. This understanding has always existed between the two sides, whether in the pre-sanctions period, during the time sanctions were in effect and after they were removed," he said.

"In reciprocal visits and talks, Iranian economic players managed to carry out a comprehensive survey of the Korean market and decide which Iranian products are in demand and fit for exports to that country. Fortunately, our businesspeople were successful in identifying Iran's export capacities and made great use of the opportunities."

Tayyebi says if stumbling blocks, including capital controls and problems related to finance and banking, are solved by the Iranian side, then commercial interactions between the two countries can expand even further.

> Prosperous Areas for Joint Investment

"There are many fields in which Iran and South Korea can engage in joint cooperation and trade. The steel industry, with the many upstream and downstream industries related to it, is a vast area for joint investment. There are also fields of household appliances and electronic devices manufacturing, which provide lucrative grounds for joint cooperation and investment," he said.

According to Tayyebi, other such areas are herbal medicine, cosmetics, automotive and transportation.

"Iran sees the South Korean economy as a model for its own economic growth. Therefore, I see a bright future ahead of economic interactions between the two countries. South Korea is a leading country in technology and innovation, and the path is paved for technology transfer from that country to Iran," he said.   

Share This :

Short URL : https://goo.gl/PlMA0j

[screwball]

Iranian central bank announced dropping 4 zeros from Iranian currency strengthening to world level

BY IWB · PUBLISHED JANUARY 27, 2013 · UPDATED JANUARY 27, 2013

 

Iranian satellite news channel announced the central bank has finished the preparation of dropping 4 zeros from Iranian currency strengthening to world level.

For example right now from all sanctions and etc.. 1 US dollar is over 12000 rial and 40000 rial on blackmarket. but if the 4 zeros drop then 1 US dollar will be 1.2 rial and 4 rial respectively.

It will greatly strengthen Iranian economy and release the hardship of high costs of goods for Iranians.

Now the fun part will be the super rich Iranians will not longer be super rich and the gap between upper class and lower class will become smaller.

Also Ahmadinejad announced that because of higher inflation a determined amount of money or funds will be given to Iranian family. The government will return more money to people soon.

 

There was a old news article from last year when Iran wanted to drop zeros and the reason given was to ‘strengthen rial’ and wrote how it will do that. I can not seem to find it through google search.

Anyway dropping zeros along with stopping import of foreign goods replacing it with domestic goods (has already started since last year. Many good are now prohibited from being imported)and other measures of dropping or phasing out dollar and euro as it was in the news recently, plus increasing the gold reserve (Iranian tv showed Iranian gold reserve increased by 100 tons this past year) and government subsidies thats going on now (every 2 to 3 months government deposits some money to Iranian low income families); All these and others can boost the economy and Irans currency in coming years.

The dropping of zeros is not just alone. There are other factors Iran has put in place by Ahmadinejad government.

So we have to wait and see what will happen. Iran contradicts every economic models in the world. What the world think it will happen will have opposite effect in Iran.

 

Old but interesting....

[millionaire in training]

Yea .... SB I like this article......too bad it's not current (2013).   But I believe that it will be in the end. It's the best outcome for Iran.

[climber7]

I don't think we'll be seeing any money any time soon.....

 

Congressional Republicans are vowing to fight a $16.6 billion deal between Boeing and Iran after the air giant announced Sunday it had agreed to sell 80 aircraft to Iran Air -- and cast the deal in Trumpian terms as good for American jobs.

GOP lawmakers had criticized the Chicago-based company when the deal was still being worked out in June. Reps. Peter Roskam, R-Ill., and Jeb Hensarling, R-Texas, fired off a letter to Boeing CEO Dennis Muilenburg at the time warning the deal could weaponize the regime.

“The Islamic Revolutionary Guard Corps (IRGC) systematically uses commercial aircraft to transport troops, weapons, military-related parts, rockets and missiles to hostile actors around the world,” they wrote. “... These terrorist groups and rogue regimes have American blood on their hands. Your potential customers do as well.” 

In the wake of Sunday’s announcement, the lawmakers showed no sign of budging, with a senior aide to Roskam telling FoxNews.com he intends to “aggressively fight” the deal in the next Congress, and expressing hope that the political winds would shift in their favor once President-elect Donald Trump takes office.

“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 to keep Iran from walking away from the nuclear deal,” the aide said.

Hensarling, meanwhile, called the deal “disappointing to say the least” and placed blame at the feet of President Obama.

“The President wants us to sell planes not just to this dangerous regime, but to an airline that his own Treasury Department sanctioned in 2011. President Obama even wants U.S. banks to draw on American citizens' deposits to finance Iran, a regime that Treasury calls ‘a jurisdiction of primary money laundering concern,'” Hensarling said.

“If a U.S. financial institution attempts to bankroll Iran in the waning days of the Obama administration, it will have to answer to Congress,” he warned. 

Hensarling is chairman of the House Financial Services Committee. Roskam leads the Ways and Means Subcommittee on Oversight.

The House already has passed measures opposing the sale, including a bill in November prohibiting the Treasury Department from financing aircraft sales to Iran. That bill has not yet gone to the Senate for consideration, and would almost certainly be vetoed by President Obama if it passed.

However, it is not clear what President-elect Trump would do with such legislation, and he has not yet commented on the Iran Air deal. While Trump has been a critic of the Iran nuclear agreement, he also has been an advocate for American manufacturing jobs, reaching out to both Ford and Carrier among other companies in an effort to keep jobs in the country.

In its announcement, Boeing framed the deal as one that would support American jobs, possibly as a way to sway the president-elect on the issue and stave off congressional dissent.

“Today's agreement will support tens of thousands of U.S. jobs directly associated with production and delivery of the 777-300ERs and nearly 100,000 U.S. jobs in the U.S. aerospace value stream for the full course of deliveries,” the company said, before noting it currently supports more than 1.5 million American jobs.

Other lawmakers backed the deal on the basis it would create jobs for American workers.

“This deal is good news for Washington state and will help support the thousands of good-paying jobs in my district that rely on trade and Boeing’s ability to compete in the global marketplace.” Rep. Rick Larsen, D-Wash., said in a statement.

Trump put Boeing on its toes earlier this month when he tweeted that he wants to cancel an order with the company for a new Air Force One, saying the costs are “out of control.”

The latest Boeing deal was made possible after trade sanctions on Iran were removed in January as part of the nuclear accord. The first planes are set to be delivered to Iran in 2018.

[screwball]

Iran to get first Airbus planes by next March

Tue Dec 13, 2016 10:17AM

1. Home
2. Iran
3. Economy

Farhad Parvaresh, the managing director of Iran’s flag carrier airline Iran Air, says his company would receive five planes from Airbus by March 2017. 

Iran says it expects to finalize an aircraft purchase agreement with European aviation giant Airbus within the next two weeks, adding that the first planes could be delivered by March 2017.  

Farhad Parvaresh, the managing director of Iran’s flag carrier airline Iran Air, was quoted by media as saying Iran in the first batch could receive five planes from Airbus. 

Parvaresh said that the France-based company had agreed to fund the sales of 17 planes to Iran, itself.   He added that Iran was trying to provide the funding for the purchase of the first three planes that would be delivered within the next few months. 

“The removal of the sanctions has provided Iran with an opportunity to directly purchase planes from aircraft makers,” the official told Iran’s Tasnim news agency. 

This opportunity, he added, should not be wasted and should be used as efficiently as possible. 

On Sunday, Iran Air finalized a much-awaited agreement with US aviation giant Boeing to purchase 80 planes.  The purchase involved 50 twinjet narrow-body Boeing 737 planes and 30 long-range wide-body 777 aircraft at a total cost of $16.6 billion. They would be handed over to Iran within 10 years and the first deliveries could take place in 2018. 

Elsewhere in his remarks, Parvaresh emphasized that a third plane purchase contract was expected to be concluded with Japan’s Mitsubishi Aircraft Corporation shortly after the finalization of the contract with Airbus. 

He added that Iran had found a financer to support the planned purchase of Mitsubishi Regional Jets (MRJs).     

•  
•  
•  
•  
•  
•  

 

 

 

 

 

Comments (1)

 

 

 

 

 

 

 

 

 

Joe Bloggs11 hours ago

That's good news. More headlines like this will increase investor confidence.

Reply

 

+0

-0

 

 

 

---

---

 

Latest News

• Iraqi forces capture Daesh boot camp: Video 20min
• Senate hearing on Russia hacking in Jan. 1hr
• Fighting in Aleppo has ended: Russia 1hr
• 'Trump determined to boost ties with Russia' 2hr
• Poorest nations falling further behind: UN 2hr
• Trump might lift Russia sanctions: Aide 3hr
• ‘No new chapters on Turkey EU bid’ 3hr
• Italy jails captain of sunken refugee boat 3hr
• Iran warns of bids to fuel religious differences 3hr
• ‘EU unable to maintain Russia sanctions’ 3hr
• UK inflation at two-year high 3hr
• 'US cancels transfer of arms to Saudis' 4hr
• New Lithuanian cabinet sworn in 5hr
• Turkey nabs 2 female pro-Kurdish MPs 5hr

More Articles

[screwball]

Iran Sanctions Cost U.S. Economy up to $272 Billion: Report - U.S. sanctions on Iran have carried a significant cost to the U.S. economy, a new report published by the National Iranian American Council today finds. Losing More Billions - The Cost of Iran Sanctions to the U.S. Economy reveals that between 1995 and 2014, the U.S. sacrificed at least $203 billion and as much as $272 billion in potential export revenue to Iran. - 12/13/16

[screwball]

Iran, Russia Plan to Set Up Joint Islamic Bank: Novak 

News ID: 1266980 Service: Economy 

 December, 13, 2016 - 17:53 

TEHRAN (Tasnim) – Russian Energy Minister Alexander Novak said Iran and Russia are exploring the possibility of establishing a joint Islamic bank. 

"The creation of a Russian-Iranian Islamic bank was discussed. Our banks are exploring the mechanism, the related decision has not been made yet," Novak said on Tuesday at a meeting of the permanent Iranian-Russian intergovernmental commission on trade-economic cooperation in Tehran, the Tass news agency reported.

He also said that the amount of financial payments between Iran and Russia has tripled in 2016.

"The return to normal bank payments is going to become a powerful trigger. This year the amount of financial payments has tripled," he said.

Elsewhere in his remarks, Novak said the trade turnover between Tehran and Moscow jumped by almost 80 percent in 2016.

"We were able to increase turnover by almost 80% against last year.”

During the meeting, which was also attended by Iranian Oil Minister Bijan Namdar Zanganeh, National Iranian Oil Company (NIOC) and the giant Russian oil and gas company, Gazprom, signed a major deal to promote cooperation in the development of two oil fields in western Iran.

[screwball]

Russia to undertake development of 7 Iranian oilfields

News ID: 3849064 - Tue 13 December 2016 - 10:50

Economy

TEHRAN, Dec. 13 (MNA) – Iran’s Oil Minister Bijan Zanganeh reported on signing research and development MoUs with Russia for expansion of seven Iranian oilfields.

Before commencing negotiations with the visiting Russian Energy Minister Alexander Novak on Tuesday morning, the Iranian minister of petroleum described main axes of bilateral oil and gas talks between Tehran and Moscow and appreciated Russia’s constructive role in OPEC meeting.

“Cooperation on the part of Russians will bring back stability to oil prices in global markets,” highlighted the official asserting “all senior officials of Iran and Russia played influential roles during the recent meeting in Vienna between OPEC and non-OPEC countries.”

Zanganeh also voiced Iran’s readiness to launch cooperation with Russian oil firms adding “development of oil fields and boosting recovery factor remain as main axes of negotiations with the Russian side.”

The official also emphasized that Iran sought to assign developmental projects for seven oilfields to Russian companies; “so far, Russia’s Lukoil and National Iranian Oil Company (NIOC) have sealed Memoranda of Understanding (MoUs) over development of Mansouri and Ab Teimour oilfields located in the southwestern oil-rich Khuzestan province.”

Iranian oil minister also recalled signing of MoUs with Zarubezhneft of Russia for study phase of Aban and West Paydar oil fields stressing “Tatneft has also joined hands with Iran over development of Dehloran oil field.”

“Gazprom is yet another Russian company who will conduct developmental studies in two Iranian fields,” underscored the official reiterating that similar agreements will be inked today with Gazprom over Cheshmeh Khoshk and Chenguleh oil fields.”

According to Sputnik who was quoting Shana news agency, Iran and Russia also signed a memorandum on cooperation in the oil and energy industries on Monday.

Accordingly, the document covers the cooperation in oil exploration and extraction, the development of oil fields, petrochemical production swaps, gas deliveries cooperation and cooperation in the sphere of oil facilities production technologies.

The memorandum was signed at the end of the meeting of the Iran-Russia Energy Committee, where Russian Deputy Minister of Energy Kirill Molodtsov and Iranian Deputy Oil Minister for International Affairs Amir Hossein Zamaninia took part.

Russian Energy Minister Alexander Novak is meeting Iranian Minister of Petroleum Bijan Zangeneh today in the framework of the Iran-Russia Joint Economic Commission session in Tehran. The ministers are expected to discuss oil cooperation between the two countries.

[screwball]

Iran to ink $25bn new oil deals

News ID: 3849004 - Tue 13 December 2016 - 13:06

Economy

TEHRAN, Dec. 13 (MNA) – PEDEC managing director has reported on plans to sign into agreements worth 25 billion dollars for expansion of two huge join fields in the post-JCPOA era.

Delineating major developmental plans for joint fields with Iraq in West Karoun region in southwestern Iran, Managing Director of Iran's Petroleum Engineering and Development Company (PEDEC) Seyed Nureddin Shahnazizadeh said “Azadegan and Yadavaran remain as largest oil fields in the region though expansion of Azadegan is being carried out together with a number of smaller fields.”

The official, while announcing that Azadegan developmental project encompasses North and South Azadegan as well as North and South Yaran fields asserted that in the MoUs inked with eager companies like Total or Shell, Azadegan oil field has been considered as a unified whole.

Shahnazizadeh also stressed that elevation of recovery factor has been put high on agenda in development of the two giant oil fields in southeastern Iran; “approximately 25 billion dollars of investment is expected to be made in two oilfields via sealing new agreements.”

Earlier in March, National Iranian Oil Company (NIOC) and France’s Total S.A. signed a confidential disclosure agreement in the coming days in order to develop South Azadegan joint oilfield.

Previously, the Project Director of the Development Project of South Azadegan Seyed 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.

Presently, 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.

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 oil.

 

HA/3848788

[screwball]

About 85% of the $16.6 billion Boeing order will be financed through foreign sources and the rest will be paid in cash by Iran Air.

Farhad Parvaresh, the Iranian flag carrier's chief executive, made the announcement in an interview with Fars News Agency on Tuesday.  

Iran Air signed the deal with Boeing earlier on Sunday for 80 passenger jets, including 50 of Boeing’s narrow-body 737max 8s, 15 wide-body 777-300ERs and 15 777-9s, to be delivered over the next 10 years.

"Boeing will initially finance the first batch of six planes. The rest of the 80-jet order will then be financed by a third party before being delivered to Iran Air over time," Parvaresh added.

As for Iran Air's 15% payment, the airline's CEO said it will be sourced from Iran's sovereign wealth fund NDFI.

The National Development Fund of Iran was created in 2011 to save oil revenues to develop Iran and invest overseas for future generations. Under the current laws, the government should deposit 20% of its revenue from oils sales to NDFI.

According to the fund’s deputy for economic affairs, Mohammad Saeed Nouri Naeini, since its inception, the NDFI has amassed $67 billion in deposit.

About the cost of the Boeing deal, Parvaresh noted that the $16.6 billion figure stated in the contract is subject to change and will probably end up lower, depending on the specifics of the purchase and the services involved.

Representatives of the European aerospace giant Airbus arrived on Sunday just hours after Iran Air concluded the Boeing deal.

"We have started negotiations and if there are no problems, we will sign the agreement within a week for the purchase of around 100 planes," deputy minister of roads and urban development, Asghar Fakhrieh Kashan, told AFP on Monday.