Iranian Rial

[screwball]

The Central Bank of Iran has announced that it will hand a list of people who traded large amounts of foreign exchange in recent weeks to Iran National Tax Administration for further investigation.

“Investigations will address both direct and indirect involvement in the deals,” said Farshad Heidari, CBI’s deputy governor for banking supervision, without elaborating further.

The official added that the central bank has already sent a list of unruly foreign exchange operators to the law enforcement forces to pursue legal charges against them, CBI’s website reported late Wednesday.

Heidari noted that the move will reward law-abiding moneychangers.

Following the US dollar’s rally against the rial in recent weeks, the move is in line with CBI’s measures against forex market speculations, which the regulator has partly blamed for the dollar’s recent rise against the rial.

The US currency has recorded a significant growth against the rial in the past 30 days, with the latter reportedly losing 17% of its value against the greenback. The rial was quoted at 40,400 rials to the dollar on Thursday in the open market, the Association of Bureaux de Change Operators of Iran announced.

The central bank has repeatedly announced that rial’s weakening is temporary, mostly caused by speculation. Higher demand for overseas trips and the growth in Emirati dirham’s rate [important for Iranian importers] are mentioned as other contributing factors.

As per the law, moneychangers who purchase, sell or transfer currency without obtaining a license from the central bank are operating illegally and their actions constitute currency smuggling.

About 400 exchangers have been registered at CBI and received a license.

Regulations also require licensed moneychangers to keep a record of their daily operations in the SANA system. The system is developed by the Central Bank of Iran, mainly for supervising rates in the forex market.

SANA also announces the average daily rates of traded foreign currencies. The rate is usually lower than the real rate in the market. The highest rate recorded in the system is 41,142 rials to $1 for December 27, whereas the currency was at 41,500-41,800 rials to the dollar in the market.

Commenting on CBI’s recent attempts to revive the banks’ role in the forex market, Heidari said, “Recent improvements in the banking system would allow lenders to offer a wider range of forex services and meet businesses’ need for forex resources.”

Last week, CBI informed businesses to approach the banking system for purchasing foreign currency, noting that banks have been permitted to exchange foreign currencies at the market rate since July.

The operations of banks in the forex market would help prevent fluctuations, said the central banker.

[screwball]

With the surge in foreign exchange rates in Iran cell phone prices have shot up  15% in just two weeks. Head of Iran’s Telecommunications Guild, Gholamhossein Karimi, in an interview with Fars News Agency said that with increase in the price of the greenback and decline in the value of the rial imported mobile phones have been more expensive. The dollar has been thrust into the spotlight for more than a month. On Thursday 40,410 rials was buying a dollar -- 7.7% dearer from its low of 37,500 two weeks ago. Karimi said all imported goods, including mobile phones, has been impacted negatively by the rise in the exchange rate, which senior government officials claim is a temporary phase and “thing will get back to normal soon.”

[jg1]

On 12/29/2016 at 4:41 AM, climber7 said:

Careful there gixxerfrog

I brought up the EXACT same thing last week and instead of a respectful logical reply I got  some harsh words instead  😡

Hahahahahahah ya. Harsh. People dont like lobster talk unless it's being cracked and put in their mouth. Nothing personal, everyone slips up now and again.

[screwball]

Iran, ATR to finalize deal in days: Official

Iran will finalize a contract with ATR aircraft manufacturer on Wednesday to purchase 20 turboprops, an Iranian official announced.

Representatives from ATR — a joint venture of Airbus and Finmeccanica of Italy — will arrive in Tehran on Wednesday for the final round of business negotiations on the multi-million-dollar contract, said Deputy Minister of Road and Urban Development Asghar Fakhrieh-Kashan on Saturday, reported Tasnim News Agency.

A $400-million contract on the purchase of twenty 70-seat passenger planes will be finalized on Wednesday, he added.

The deputy minister noted that five planes are expected to be delivered to Iran's flag carrier airline, Iran Air, by March 2017.

According to Fakhrieh-Kashan, the new planes will operate on domestic routes.

An initial agreement on the purchase of the ATR planes was reached during the visit to Italy in January 2016 by President Hassan Rouhani and the business delegation accompanying him.

In the same month, during President Rouhani's visit to Paris, Tehran also signed a major contract worth about $27 billion with Airbus to buy 118 planes.

Iran and Airbus intensified business negotiations in October following the US decision to remove a final hurdle for Western aircraft manufacturers to sell planes to Iran under contracts signed after the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Tehran and P5+1 (Russia, China, the US, Britain, France and Germany) went into force in January.

While Western plane makers are impatient to trade with Iran, Washington still demands that even non-American manufacturers wishing to sell to Iran obtain an export license if their products include materials made in the United States. Airbus, based in Europe, buys more than 40 percent of all its aircraft parts from the US.

Iran sealed another deal in June worth around $25 billion with the US aerospace heavyweight, Boeing, for the purchase of 100 passenger planes.

In December, the deal with Boeing was finalized, allowing Iran to buy 80 planes within 10 years. The first deliveries are expected in 2018.

[screwball]

old options trading started on Iran Mercantile Exchange on Wednesday.  The options are being traded through brokers for the time being but, according to IME CEO Hamed Soltani-Nejad, their online trading will start when volume picks up.  The new options trading on the IME platform are offered on Emami gold coins–the benchmark for gold trading in Iran, SENA reported.  Their futures are already traded on IME while their spot trade is done in Tehran among bureaux de change overseen by the Central Bank of Iran. These options are European style, meaning they can only be exercised at expiration, contrary to American-style options that can be exercised any time from their sale up to the options’ expiration.

[screwball]

I have posted over 1000 articles since been part of this forum, 99.99 % which support why Iran will not lop, this has included them saying they will not lop and that they want usd parity or slightly greater. people read what they want to read and believe what they want to believe unfortunately you can lead a horse to water but you can make it drink....so it's time for me to say goodbye...

[screwball]

I will leave you with this last post...

The unification of Iran's dual foreign exchange regime and the decline in the exchange rate of major currencies were among the most important topics discussed at Saturday's meeting between top economic officials and senior lawmakers, as rial continues to gain against the US dollar, announced the chairman of Majlis Economic Commission.

"It was decreed [during the parliamentary meeting] that foreign exchange rates be unified over the long term and the government use the instruments necessary to decrease currency rates in the short term," Mohammad Reza Pour-Ebrahimi told Fars News Agency.

The official was speaking after a meeting attended by members of the commission, Economy Minister Ali Tayyebnia and Central Bank of Iran Governor Valiollah Seif on Saturday.

The exchange rate of the US dollar had crossed 40,000 rials last week but started showing signs of abating as of Wednesday. The greenback was quoted at 39,500 rials in the free market on Saturday.

The below 40,000-rial rate for $1 would be a major relief for the heated forex market, after it experienced one of its biggest upheavals in recent time.

The meeting was held to discuss these upheavals in the forex market.

A member of the commission, who was present at the meeting, quoted Seif as saying that a substantial amount of foreign currency was injected into the market by CBI to reverse rial's weakening against the greenback.  

"Seif referred to injecting $5.8 billion into the unofficial market as one of the efforts to manage the market, because of which the exchange rate of the dollar [against rial] has decreased," Seyyed Hassan Hosseini Shahroudi also said in a talk with Tasnim News Agency.

According to Shahroudi, the entry of banking system in foreign exchange trading at the free market rate has also contributed to rial's rise against the dollar.

Last week, CBI informed businesses to approach the banking system for purchasing foreign currency, noting that banks have been permitted to exchange foreign currencies at the market rate since July.

Single Forex Rate Still in Sight

The central bank governor also spoke to reporters after the meeting, stating that rate unification is necessary for the economy.

"Things have been said on my behalf, but what I actually said was that there needs to be a fulfillment of prerequisites to achieve a full unification of forex rates," he said.

"One of these prerequisites is suitable [international] banking ties to engage in international transactions."

Iran operates two exchange rates—a free market rate and an official rate used for state transactions—set by the central bank at around 32,375 rials on Saturday.

In recent months, the central bank has raised the official rate gradually to reduce the gap between the two. It wants to unify the exchange rate, make the economy more efficient and create a level playing field for private firms competing with state institutions with access to cheaper foreign exchange.

The CBI governor added that compared to when Iran's nuclear accord with world powers was first signed in June last year, the country has moved forward and positive results have been achieved, which have partially paved the way for adopting a single exchange rate.

Seif reassured that the matter "will be followed up", reports ICANA.

On the state of currency market, the official reiterated that the recent rise in forex rates has been a result of seasonal demand "which had peaked", but is now moving on a downward trend and will continue to do so.

Seif said the central bank prefers to avoid talking about currency rates as much as possible to make currency speculators incur losses, predicting that this is exactly what will happen.

"The current forex rates in the market are not real and economic variables show circumstances that will lead to a declining trend of [exchange] rates," he said.

He also elaborated on the central bank's recent announcement that it will hand a list of people who traded large amounts of foreign exchange in recent weeks to Iran National Tax Administration for further investigation.

Seif noted that the tax administration can now legally obtain information from the central bank to monitor bank accounts involved in large-scale currency trading.

As of now, any account with a high volume of forex transactions will be scrutinized to check whether or not they have submitted their tax returns.

[screwball]

Just now, screwball said:

The unification of Iran's dual foreign exchange regime and the decline in the exchange rate of major currencies were among the most important topics discussed at Saturday's meeting between top economic officials and senior lawmakers, as rial continues to gain against the US dollar, announced the chairman of Majlis Economic Commission.

 

Just now, screwball said:

Single Forex Rate Still in Sight

 

1 minute ago, screwball said:

One of these prerequisites is suitable [international] banking ties to engage in international transactions."

 

1 minute ago, screwball said:

The central bank governor also spoke to reporters after the meeting, stating that rate unification is necessary for the economy.

 

[screwball]

Seif said the central bank prefers to avoid talking about currency rates as much as possible to make currency speculators incur losses, predicting that this is exactly what will happen.

offcourse you won't talk about it? Becuase it will cause speculation! " predicting"? Lol

[markb57]

16 minutes ago, screwball said:

I have posted over 1000 articles since been part of this forum, 99.99 % which support why Iran will not lop, this has included them saying they will not lop and that they want usd parity or slightly greater. people read what they want to read and believe what they want to believe unfortunately you can lead a horse to water but you can make it drink....so it's time for me to say goodbye...

ah hang around SB. It's just getting interesting....the lop thing is paranoia from the dinar. seriously, it makes you wonder how these folks function in the ME and how they will be able to keep up in the global scheme of things. they seem so fragmented at times.

[blueskyline]

Ummm Screwballl . 1 .... Happy New Year ! 2 . Where the Hell You Think You Going !!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[screwball]

Was trying to send you a pm....I am sitting here waiting for them to pass the removal of four zeros....and them go international

[Freedomwish]

1 hour ago, screwball said:

Was trying to send you a pm....I am sitting here waiting for them to pass the removal of four zeros....and them go international

Heeeyy ..!!  Soorry I'm beenn drinking Happpy neeww year no go yet - I'll pack up my baggs when you say we reaady...

 

Happy new yeaar!! 

[gregp]

14 hours ago, screwball said:

Iran, ATR to finalize deal in days: Official

Iran will finalize a contract with ATR aircraft manufacturer on Wednesday to purchase 20 turboprops, an Iranian official announced.

Representatives from ATR — a joint venture of Airbus and Finmeccanica of Italy — will arrive in Tehran on Wednesday for the final round of business negotiations on the multi-million-dollar contract, said Deputy Minister of Road and Urban Development Asghar Fakhrieh-Kashan on Saturday, reported Tasnim News Agency.

A $400-million contract on the purchase of twenty 70-seat passenger planes will be finalized on Wednesday, he added.

The deputy minister noted that five planes are expected to be delivered to Iran's flag carrier airline, Iran Air, by March 2017.

According to Fakhrieh-Kashan, the new planes will operate on domestic routes.

An initial agreement on the purchase of the ATR planes was reached during the visit to Italy in January 2016 by President Hassan Rouhani and the business delegation accompanying him.

In the same month, during President Rouhani's visit to Paris, Tehran also signed a major contract worth about $27 billion with Airbus to buy 118 planes.

Iran and Airbus intensified business negotiations in October following the US decision to remove a final hurdle for Western aircraft manufacturers to sell planes to Iran under contracts signed after the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Tehran and P5+1 (Russia, China, the US, Britain, France and Germany) went into force in January.

While Western plane makers are impatient to trade with Iran, Washington still demands that even non-American manufacturers wishing to sell to Iran obtain an export license if their products include materials made in the United States. Airbus, based in Europe, buys more than 40 percent of all its aircraft parts from the US.

Iran sealed another deal in June worth around $25 billion with the US aerospace heavyweight, Boeing, for the purchase of 100 passenger planes.

In December, the deal with Boeing was finalized, allowing Iran to buy 80 planes within 10 years. The first deliveries are expected in 2018.

Combined aircraft purchases....

$1,715,928,000,000,000.00 QUADRILLION RIAL

Wow...

[gregp]

[gregp]

[gregp]

Just now, gregp said:

They need to turn this train around!

[gregp]

Daddy needs a vacation. 

[Man_Kind]

4 hours ago, Freedomwish said:

Heeeyy ..!!  Soorry I'm beenn drinking Happpy neeww year no go yet - I'll pack up my baggs when you say we reaady...

 

Happy new yeaar!! 

Hey NYC ! 

Happy New Year and to all DV family

Just came back to life myself.....rots and rots of cheap Rhode Island beer last night !!!

Having chicken wings and pizza for breakfast................yummy

[WheresmyRV?]

SB please don't leave us!  You bring so much to this thread and you keep us all informed on to what is going on! Please don't leave! 

[gregp]

Thanks for all your work Screwball. I really appreciate you. Here's to 2017!

[climber7]

 

Iran should have jumped sooner. 

 

 

Re-Energized Dollar Looms Over the Rest of the World 

On Wall Street, the rising dollar has been one of the most visible signals of growing optimism in the U.S. economy; for many other countries, it spells trouble. 

 

ENLARGE

Freshly cut $1 notes at the U.S. Bureau of Engraving and Printing in Washington. Most analysts expect the U.S. currency to strengthen in 2017. PHOTO: ANDREW HARRER/BLOOMBERG NEWS

By 

IRA IOSEBASHVILI

Updated Jan. 1, 2017 10:03 a.m. ET

37 COMMENTS

On Wall Street, the rising dollar has been one of the most visible signals of growing optimism in the U.S. economy. For many other countries, it spells trouble.

Most analysts expect the U.S. currency to strengthen in 2017, extending a gain that has boosted the value of the dollar by more than one-third since the U.S. credit downgrade in 2011.

That expectation is mostly because a strengthening economy appears likely to enable the Federal Reserve to enact its plan for multiple rate increases in 2017. Higher rates make it more attractive to hold dollar-denominated assets, attracting money into the U.S.

“Right now, there is an incredible amount of pressure to sell just about every type of currency and buy the dollar,” said Christopher Stanton, chief investment officer at Sunrise Capital LP, which manages $700 million.

Mr. Stanton recently bet that the U.S. currency will appreciate against the Australian dollar, Japanese yen and euro in the next few months.

A stronger dollar raises the buying power of U.S. consumers and businesses by making imported items cheaper and reducing the costs of traveling abroad. By the same token, however, it hurts U.S. exporters by making their goods less competitive overseas, cutting into corporate earnings and potentially weighing on stock prices.

In emerging markets, sustained dollar strength could undercut prices for oil and other dollar-denominated commodities, pressuring developing economies that export raw materials. Emerging-market companies and governments that have borrowed heavily in the U.S. currency will also find their debt more difficult to service.

For China, the rising dollar is exacerbating capital outflows and tightening liquidity, shaking markets that had enjoyed a period of relative stability for most of 2016. Chinese bond markets plunged in reaction to December’s Fed meeting, at which the U.S. central bank decided to lift rates and signaled several more boosts. Chinese regulators injected money to allay a possible credit squeeze, while stocks also fell.

The Year Ahead: Markets

• Will 2017 Be the Year of the Deal?
• The Hedge-Fund Managers to Watch
• Oil Prices Have a Slippery Path Upward
• Re-Energized Dollar Looms Over the Rest of the World
• China Embarking on a Financial High-Wire Act
• Politics Cloud European Economic Outlook
• The Figures of Finance Who Died in 2016

China’s central bank has also had to drain $300 billion of its reserves in the first three quarters of the year, more than it spent in all of 2015, as it fought to slow the yuan’s decline against the dollar. China’s currency is down 4.3% against the dollar since October, falling to a record low. Other emerging-market currencies have been hit far worse: the Turkish lira is off nearly 15% in the last three months of the year.

Expectations of fiscal stimulus under President-elect Donald Trump “have absolutely re-energized the dollar,” said Alan Ruskin, head of G10 foreign exchange strategy at Deutsche Bank.  “This is a major shift in policy dynamics.”

The Wall Street Journal Dollar Index, which measures the dollar against a basket of 16 currencies, rose 3.1% in 2016 on a late-year surge against the euro, yen and emerging markets.

Roughly 60% of clients surveyed by Citigroup believe the dollar will be either “moderately higher” or “sharply higher” against developed and emerging market currencies next year.

Some worry, however, Mr. Trump’s proposals on infrastructure spending and tax cuts may not come to fruition. And past fiscal expansions have had mixed effects on the U.S. currency.

The ICE Dollar Index rallied more than 80% between 1981 and 1985, driven by a mix of fiscal stimulus pushed through by then-President Ronald Reagan and a series of rate increases by the Federal Reserve in the decade’s early years.

But tax cuts under President George W. Bush failed to boost the dollar in the 2000s, as they were accompanied by a dovish Fed and uncertain equity markets, a Deutsche Bank report said.

Investors also expect the Fed to keep a close eye on the currency’s ascent, and raise rates at a slower pace if the dollar’s rally appears to be bruising the U.S. economy.

Thanos Bardas, a portfolio manager at Neuberger Berman overseeing $255 billion, said he took profits in December on bets that the dollar will rise against the yen, wary that the U.S. currency has risen too quickly in a short period of time.

“The markets have an extremely rosy outlook,” he said. “The smart trade is to trust but verify.”

[markb57]

Iran, like Iraq, just can't seem to get it in gear. The dollar is going to trounce all other currencies. They better move quickly or lose it all along with us, unfortunately. Of course, we're not there in the ME to see whats happening day to day but it just seems the US markets and money changers move at light speed compared to the ME. If the ME wants to play with the big boys, they better step up their game about 1000%. The ME better quite holding their hand out for more and more loans and get their act together and stop the theft of their own govt or they will never succeed.

[screwball]

President: Government creates 704,000 jobs a year

Tehran, Jan 1, IRNA – President Hassan Rouhani said in a televised speech on Sunday night that the government created 704,000 sustainable jobs a year.

 

He said that one million applicants come to the job market every year, adding that it is unfortunate that 300,000 job applicants remain unemployed every year.

President Rouhani said that the government encourages both the domestic investment and foreign investment to create sustainable jobs. 

In the past two years, the number of employed people in Iranian year of 1392 was over 21.300 million and in the past two years the situation improved and the number now stands at 23 million which is remarkable.

The President said that a limited number of countries in the world could create about 600,000 job per year, so that Iran has created almost record number of jobs.

Sustainable economic development and economic growth are the objectives of the government.

The government had decided to register five percent growth this year, the president said. Growth in Iran's oil income, growth in agricultural products, cultivation of wheat, small-sized industrial, and the country's exports mainly in the first three months of the year the growth rate stood at 6.4 percent.

The government must attract more foreign investment to increase rate of the country's economic growth and create more jobs, President said. 

Export of non-oil products in the first six month of the current Iranian year was about dlrs 31 billion registering 10 percent growth compared with the preceding period.
The price of foreign currencies will not rise, he said. 
Growth of foreign exchanges stood between four to five percent which is quite natural under the current circumstances, he said, adding that dollar gained against euro and UK pound sterling and it was the reason for fluctuation of rial against the dollar.
He promised to see stable foreign currency rates in the next few months.
1430**1416

[screwball]

Just now, screwball said:

He promised to see stable foreign currency rates in the next few months.

Same time as rate unification by March...