Iranian Rial

[climber7]

 

Nothing to say....just hoping some good news pops up here 

[climber7]

Nothing to see here folks... 🙁

[pokerplayer]

 

1 minute ago, climber7 said:

Nothing to see here folks... 🙁

 

Was actually planning on posting here today. Thxs for the reminder climber7.

As most know following this thread, I have a neighbor that came from Iran some 20 yrs. ago. Once in awhile I ask him if anything is going on with the currency as he still has numerous relatives there.

I asked him a couple days ago what his family thinks about the removal of 4 zeros and strengthening the rial.

They ( in Iran ) seem to think that is a last ditch effort to keep in the current regime. Things were going great up until the sanctions were reimposed then everything got twice as bad as before.

They don't seem to believe that it will happen but even more so than us then ever they so want it to happen.

 

Bottom line ? They doubt that anything will happen till the current regime is out and a new gov't. put's a stop to any " suspected " nuclear ambitions and is transparent about it.

 

Fuzz, not what I wanted to hear. 

 

   pp

 

[climber7]

3 minutes ago, pokerplayer said:

 

 

Was actually planning on posting here today. Thxs for the reminder climber7.

As most know following this thread, I have a neighbor that came from Iran some 20 yrs. ago. Once in awhile I ask him if anything is going on with the currency as he still has numerous relatives there.

I asked him a couple days ago what his family thinks about the removal of 4 zeros and strengthening the rial.

They ( in Iran ) seem to think that is a last ditch effort to keep in the current regime. Things were going great up until the sanctions were reimposed then everything got twice as bad as before.

They don't seem to believe that it will happen but even more so than us then ever they so want it to happen.

 

Bottom line ? They doubt that anything will happen till the current regime is out and a new gov't. put's a stop to any " suspected " nuclear ambitions and is transparent about it.

 

Fuzz, not what I wanted to hear. 

 

   pp

 

 

 

Thanks for the update PP  

[WheresmyRV?]

Im debating with myself to get rid of this or not, its really looking like this isn't happening for a long time.

[md11fr8dawg]

Don't know how much you have, but what I have didn't cost that much. Probably couldn't get half of the original cost if I sold. So I'll hang onto it and if I pass and then it rebounds my daughter and here family can party down. JMHO

[climber7]

Anyone got anything? lol 

[markb57]

On 2/16/2019 at 8:40 AM, md11fr8dawg said:

Don't know how much you have, but what I have didn't cost that much. Probably couldn't get half of the original cost if I sold. So I'll hang onto it and if I pass and then it rebounds my daughter and here family can party down. JMHO

 

 

same here. hopefully won't be doing the same with the dinar.....

[Freedomwish]

3 hours ago, climber7 said:

Anyone got anything? lol 

 

I'm down to my last bottle of Remy Martin 1738 with about 7 shots left if you're interested in some lol 

 

Otherwise, nope. 

[screwball]

nd Markets

March 12, 2019 19:22

TCCIMA Again Demands End to Forex Subsidy

 

Khansari asked the government to also reform the energy subsidy system by giving subsidies in cash directly to the people

TCCIMA Again Demands End to Forex Subsidy

.....

Further to its persistent calls for transparency and doing away with the controversial subsidy schemes, Tehran Chamber of Commerce, Industries, Mines and Agricultures called on the government to unify the multiple currency rates, which it said has created a hotbed for corruption and rent-seeking. 

At the last meeting of the TCCIMA board of representatives during the outgoing fiscal (ends March 20) on Tuesday, its president Masoud Khansari said multiple exchange rates are like oxygen for corruption. He once again appealed to the government to unify the exchange rates "as quickly as possible." 

Last year the government had said it is cognizant of the warnings by economists and businesses to get rid of subsidized forex. It pegged the USD  rate at 42,000 rials on the promise that it can meet all currency needs at that rate. 

[screwball]

To end subsidies you need to unify rates...delete zeros project is still active. No guts no glory!

[screwball]

27

Iran's CB Announces New Incentives for Currency Repatriation 

 

Iran's CB Announces New Incentives for Currency Repatriation 

.....

In a bid to encourage companies to return their export earnings to the country, the Central Bank of Iran has offered a new incentive package. 

Depending on the exporters’ earnings and their performance, the incentive involves allowing them to sell a portion of their forex to exchange bureaux in cash or hawala instead of selling entirely via Nima (Persian acronym for the Integrated Forex Deals System), the CBI website reported. 

Nima rates are higher than the official CBI rates (42,000 rials to one USD) but lower than the open market rates (1USD= 118,000 rials). This is a primary reason behind many exporters’ reluctance to sell their forex via Nima. They say they have no objection to repatriate their currency earnings, but the compulsion to sell via Nima is a spanner in their works. 

[screwball]

Iran forex reserves 'in best condition': Central bank

Tue Feb 26, 2019 01:36PM [Updated: Tue Feb 26, 2019 01:49PM ]

1. Home
2. Iran
3. Economy

President Hassan Rouhani (bottom C) chairs an annual meeting of the Central Bank of Iran in Tehran, Feb. 26, 2019. (Photo by Mashreq)

Central Bank Governor Abdoldnaser Hemmati says Iran’s foreign exchange reserves have risen in the face of US sanctions which aim to deplete them.

“The foreign exchange reserves of the country are in the best condition. Not only have they not been lost but they have also rapidly grown,” he said Tuesday at an annual meeting of the central bank in Tehran.

Iran’s currency has tanked over the past year, driven in part by a return of US sanctions after President Donald Trump decided to abandon an international nuclear agreement with Tehran.

Hemmati described the situation as hard but said measures taken so far had forestalled a further deterioration where people’s life savings have been wiped out and prices have shot through the roof.

“We were able to take appropriate measures in a difficult situation and to prevent the deterioration of the situation,” he said, adding “We are ready to take even better decisions.”

Hemmati replaced Valiollah Seif as governor of the central bank in July after the rial’s collapse to a record low of 190,000 to the dollar disrupted Iran’s foreign trade and helped boost annual inflation fourfold to nearly 40 percent.

Central Bank Governor Abdolnaser Hemmati (R) addresses an annual meeting of the central bank in Tehran as President Hassan Rouhani looks on, Feb. 26, 2019. (Photo by Mashreq)

“Seven months ago, when I took over the central bank, the dollar’s rate was 116,000 rials. But after the implementation of two rounds of the harshest sanctions in August and November, our foresight and resistance has landed us where the free market rate has grown only 10-12 percent,” Hemmati said.

“Trump had said that he would destroy Iran's money and cripple the Iranian economy, but despite all the pressure, we were able to create relative stability so that liquidity did not grow over the past few months,” he added.

Hemmati said the central bank was at the forefront of a confrontation with the enemy whose “psychological war” was having an impact on the foreign exchange market from time to time.

“The currency rates, however, have returned (to normal levels) because we have managed to balance economic flows,” he said.

US assistant secretary for terrorist financing at the Treasury Marshall Billingslea in September touched on the value of the Iranian rial, boasting that Washington’s efforts “are already generating results”.

“We have never seen a precipitous drop like this in the history of our sanctions programs on Iran. The Iranian rial is now trading somewhere around 140,000 to the dollar. It’s lost more than two-thirds of its value,” he told a congressional hearing.

PressTV-Iran’s rial rebounds but not out of the woods yet

The Iranian rial is gaining some respite from its record losses against the dollar after the country had to take drastic measures to arrest the national currency’s downward spiral.

President Hassan Rouhani said Tuesday the government’s main task for the new year is to rein in inflation and prop up the national currency.

Historically, Iran’s economy is saddled with high inflation because of its reliance on oil revenues which are extremely vulnerable to market fluctuations.

That became evident when a flush of oil revenues of up to $700 billion during the tenure of former President Mahmoud Ahmadinejad spawned an inflation rate of about 40 percent.

As a result, not only did the unprecedented oil income not improve the living situation of most Iranians, but it also reduced many families to penury.

According to Kamran Naderi, a professor of economics at Imam Sadeq University, internal weaknesses combined with annoying US sanctions on Iran make for a perfect storm.

“If these weaknesses did not exist, the sanctions would never be so much effective,” he told Tasnim news agency.

Rouhani said Iranian banks were behind the dramatic liquidity bulge, adding several military banks would “merge into one bank soon”.

“I hope the merger will be done by the end of the year (on March 21),” Rouhani said, adding the decision has been approved and the related acts submitted to the central bank for implementation.

[screwball]

Just now, screwball said:

We are ready to take even better decisions.”

Yep...

[screwball]

FATF extends suspension of its measures against Tehran

Fri Feb 22, 2019 10:54AM [Updated: Fri Feb 22, 2019 11:14AM ]

1. Home
2. Iran
3. Politics

The FATF is the global anti-money laundering body based in Paris. 

The Financial Action Task Force (FATF), the global anti-money laundering body, has extended the suspension of its measures against Tehran, saying Iran has until June to fully adopt the remaining financial reforms. 

Iran has to implement those reforms in order to join the body for increased financial transactions with the rest of the world in the face of unilateral US sanctions. 

"While welcoming the passage [by Iran] of the Anti-Money Laundering Act, the FATF expresses its disappointment that the Action Plan remains outstanding and expects Iran to proceed swiftly in the reform path to ensure that it addresses all of the remaining items,” the Paris-based body said in a statement Friday.

It warned that if Iran fails to enact the remaining legislation based on FATF’s standards by June 2019, the FATF will “require increased supervisory examination for branches and subsidiaries of financial institutions based in Iran.”

PressTV-FATF extends Iran sanctions waiver but sets deadline

The Financial Action Task Force extends suspension of measures against Iran and sets a deadline of October for the country to adopt financial reforms or face consequences.

Last October, Iran's parliament approved four bills put forward by the government to meet standards set by the FATF but the oversight Guardian Council dismissed one of the bills.

The council said it had found "flaws and ambiguities" in the draft legislation which is purported to fight terror financing, but in fact targets Iran for supporting resistance movements such as Hezbollah. 

"Until Iran implements the measures required to address the deficiencies identified with respect to countering terrorism-financing in the Action Plan, the FATF will remain concerned with the terrorist financing risk emanating from Iran and the threat this poses to the international financial system," the Friday statement said.

European signatories of the 2015 nuclear deal between Tehran and world powers have asked Iran to join the FATF before a new payment mechanism, officially called the Instrument in support of Trade Exchanges (INSTEX), takes force.

Iranian critics of INSTEX say the Europeans have conditioned its implementation to Iran joining the FATF.

PressTV-INSTEX: A US-Europe game to get concessions from Iran?

The Asr-e-Iranian daily gets viewpoints of a number of Iranian lawmakers to shed light on the negative aspects of a European non-dollar trade mechanism apparently meant to protect ties with Iran against US bans.

FATF's proponents have said the measure would smooth the path for Iran’s increased financial transactions with the rest of the world and help remove the country from investment blacklists.

Opponents, however, say membership in the FATF will only make the country vulnerable to outside meddling. 

They say Iran's implementation of FATF standards so far has not only failed to attract investment, but it has also exposed various institutions to extraterritorial regulations and penalties.

The FATF cannot impose sanctions, but individual states that are its members have used the group's reports to take punitive measures against their adversaries. As a result, Iran has been targeted by US and European sanctions.

Iran has already been implementing a domestic anti-money laundering law as part of its efforts toward financial transparency. Additionally, it has long been combating terror financing.

[pokerplayer]

Thxs SB. Everything points to a currency change. If it was not for those darn sanctions I believe it would be done by now.

 

Problem is I tend to agree with the sanctions, but just wish they would show an act of defiance and change the currency value for the better.

 

  JMHO,  pp

[screwball]

Iranian MP: Country in urgent need of economic reforms

Mon Feb 11, 2019 02:47PM [Updated: Mon Feb 11, 2019 04:05PM ]

1. Home
2. Iran
3. Economy

Mohammadreza Pourebrahimi, Chairman of Iran's Parliament

A senior Iranian lawmaker says structural reforms recommended by leader of the Islamic Revolution will be put on the agenda of the Supreme Council of Economic Coordination over the next couple of weeks. 

Speaking on the 40th anniversary of the 1979 Islamic Revolution on Monday, Mohammadreza Pourebrahimi, Chairman of Iran's Parliament, said during the upcoming meeting of the Supreme Council of Economic Coordination slated for next weeks, the heads of the three branches of the government will address the issue.

He underlined that the country is in an urgent need of structural reforms in economic areas and added the issue should be addressed seriously.

“Our domestic capacities in various areas are large enough to enable us to successfully survive the current US sanctions,” he added.

Earlier this month, Ali Larijani, Iranian parliament speaker, announced that Ayatollah Ali Khamenei has called for structural reforms within the next four months.

“The Leader instructed that within the next four months there will be structural reforms, which can possibly lead to budget reforms… After the work of the budget in parliament is finished, this discussion can be pursued,” he said and added the structural reforms will facilitate the work of the people," he said. 

 

Comments (4)

 

 

 

 

 

 

 

 

 

[screwball]

Within the next four months 

[pokerplayer]

1 minute ago, screwball said:

A senior Iranian lawmaker says structural reforms recommended by leader of the Islamic Revolution will be put on the agenda of the Supreme Council of Economic Coordination over the next couple of weeks. 

 

I really like this part !!

 

  pp

[screwball]

Chief bankers of Iran, Iraq sign deal on payment mechanism

Wed Feb 6, 2019 12:21AM [Updated: Wed Feb 6, 2019 12:25AM ]

1. Home
2. Iran
3. Economy

Governor of Iran's Central Bank Abdolnasser Hemmati and his Iraqi counterpart Ali Mohsen Al-Allaq sign an agreement on a payment mechanism aimed at facilitating the settlement of Baghdad's debts to Tehran. (Photo by IRNA)

Governors of the central banks of Iran and Iraq on Tuesday signed an agreement on a payment mechanism which is to facilitate the settlement of Baghdad’s debts to Tehran.

The deal, signed in Baghdad by Iran’s Abdolnasser Hemmati and Iraq’s Ali Mohsen Al-Allaq, mainly focuses on a payment channel that is to facilitate the settlement of the Arab country’s debts to Tehran over gas and electricity imports, among others.

The two sides inked the agreement following negotiations between members of their delegations in Baghdad’s Al Rasheed Hotel.

Upon arrival in the Iraqi capital Tuesday, Hemmati told IRNAthat his trip was aimed at removing the obstacles that hinder the settlement of Iraq’s debts to Iranian exporters.

“Currently, we’re witnessing a considerable volume of exports [from Iran to Iraq] in both public and private sectors, but there are shortcomings in banking and monetary exchanges, which have created problems for [Iranian] exporters,” he said.

In addition to natural gas and electricity, Iraq imports a wide range of goods from Iran including food, agricultural products, home appliances, and air conditioners.

The value of Iranian imports to Iraq was about $6 billion for the 12 months ending March 2018, about 15 percent of Iraq’s total imports for 2017.     

The energy contracts between the two countries also contributed to a volume of trade of $12 billion last year.

Iran is currently Iraq's top trade partner, having sharply increased their trade exchanges in recent months despite US sanctions on the Islamic Republic.

The US government in November re-imposed unilateral sanctions against the Islamic Republic of Iran and urged all countries in the world to stop doing business with Iran.

However, in a bid to meet its energy needs, Baghdad requested the US to exempt the Arab country from its unilateral sanctions against the Islamic Republic, and was finally granted a 45-day waiver, which was later extended for another three-month period.

PressTV-US grants Iraq 90-day waiver over Iran sanctions

The United States has granted Iraq a 90-day waiver over Iran sanctions to import natural gas and electricity.

After giving the waiver, the US said that Iraq could continue to import natural gas and energy supplies from Iran as long as it did not pay Iran in US dollars.

Therefore, the country officially removed the US dollar in trade with Iran, and started working on the use of local currencies in its economic ties with Tehran.

Read more:

• Iran, Iraq consider using local cash in mutual trade
• Iraq officially removes US Dollar from Iran trade

Iran’s Tuesday deal with Iraq on facilitating financial exchanges came a few days after the European signatories to the 2015 Iran nuclear deal formally announced the launch of a long-awaited direct payment mechanism meant to safeguard their trade ties with Tehran in the face of the "toughest ever" American sanctions.

Following months-long preparations, foreign ministers of France, Germany and Britain finally unveiled the mechanism -- officially called the Instrument in support of Trade Exchanges (INSTEX) -- on Thursday following a summit in Bucharest.

PressTV-Defying US, Europe launches payment channel with Iran

In a blow to US sanctions against Iran, the European parties to the 2015 nuclear deal unveil a direct payment channel with Tehran meant to protect bilateral trade ties.

"France, Germany and the United Kingdom, in accordance with their resolute commitment and continued efforts to preserve the Joint Comprehensive Plan of Action (JCPOA) endorsed by United Nations Security Council resolution 2231, announce the creation of INSTEX SAS (Instrument for Supporting Trade Exchanges), a Special Purpose Vehicle (SPV) aimed at facilitating legitimate trade between European economic operators and Iran," the three foreign ministers said in a joint statement," they said in a joint statement.

France, Germany and the UK are the initial shareholders of the INSTEX mechanism for trade with Iran, which has been registered in the French capital, Paris, with a capital of 3,000 euros, and will be governed by a German banking expert, according to AFP and German media.

INSTEX is designed to pave the way for European firms to do business with Iran while evading the strict sanctions the US re-imposed against Iran last year after leaving the 2015 multinational nuclear deal, formally called the Joint Comprehensive Plan of Action (JCPOA).

[screwball]

This is nice...one of trumps requirements

[screwball]

He wants them to be part of the international monetary system

[screwball]

Last year...

 

Top GOPers ask Trump admin. to put Iran back on FATF blacklist

Fri Jun 22, 2018 08:42AM [Updated: Fri Jun 22, 2018 08:45AM ]

1. Home
2. Iran
3. Politics

A view of the venue for FATF's plenary meeting in Spain in 2017

A group of senior Republican lawmakers in US Congress have asked the administration of President Donald Trump to add Iran back on the Financial Action Task Force (FATF)'s blacklist and reverse one of the key agreements that paved the way for the 2015 nuclear deal between the Islamic Republic and major world powers.

Senator Rob Portman and Representative Ed Royce wrote a letter to Treasury Secretary Steven Mnuchin on Thursday, asking him to raise the issue during the Paris-based anti-money laundry and terror financing organization's upcoming session next week in the French capital.

In making their case, Portman and Royce-- chair of the Senate Permanent Subcommittee on Investigations and chair of the House Foreign Affairs Committee, respectively-- referred to a recent congressional report that claimed then-President Barack Obama tried "to give Iran access to the US financial system" to facilitate the deal, known as the Joint Comprehensive Plan of Action (JCPOA).

"This upcoming FATF session is particularly important following the recent release of the Senate Permanent Subcommittee on Investigations' report exposing new details about the previous administration's efforts to give Iran access to the US financial system, including through consideration of a general license for the ‘conversion of two non-USD currencies through the limited use of the USD as an intermediate currency,'" the lawmakers wrote in the letter.

PressTV-FATF extends freeze of restrictions on Iran

The body fighting money laundering prolonged a freeze of some of its restrictions on Iran after verifying the Islamic Republic’s continued compliance with its directives.

"In the push to save its deeply flawed nuclear deal, the Obama administration unwisely backed a wide range of economic relief for Iran—including through the FATF," the lawmakers further noted. "In June 2016, the administration supported the FATF’s decision to suspend ‘counter-measures' against Iran for one year, following Tehran's submission of an Action Plan to the FATF to address deficiencies in its anti-money laundering/counter-terrorist financing policies."

Despite Trump's withdrawal from the JCPOA in May and his pledge to punish foreign companies that do business with Iran, the FATF is continuing to lift restrictions on Iran every six months since the implementation of the nuclear deal in January 2016.

In its plenary session in February, however, the anti-money laundering group gave in to US pressure and decided to maintain Iran's status as a high-risk jurisdiction for money laundering.

The two lawmakers said the FATF needed to take further action against Iran because Tehran was providing financial support for Lebanese and Palestinian resistance movements, Hezbollah and Hamas, which are both regarded as terror groups by the US.

According to Portman and Royce, Iran did so by designating these groups as "legitimate popular resistance against colonial domination and foreign occupation."

"It's time to recognize that Iran has failed to take the necessary steps—despite its pledges two years ago—to be removed from the list of FATF’s high-risk and non-cooperative jurisdictions," the letter read. "The United States should now utilize its influence within the FATF to reimpose countermeasures against Iran and protect the international financial system."

PressTV-Iran beefs up law to fight money laundering

The new amendments come ahead of a June session by Paris-based Financial Action Task Force (FATF) which is expected to issue a verdict on trade with Iran.

Iran’s parliament has adopted new amendments proposed by the government to the country’s Anti-Money Laundering (AML) law as part of efforts to improve connections to the international banking and trade system.

The upcoming FATF session is expected to issue a verdict on international transactions and business relationships involving Iran.

Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei said on Wednesday that Iran would not submit to the conventions that undermine the nation’s independence.

The Leader touched on global agreements purportedly aimed at fighting terrorism and money laundering, saying the signatories of those conventions have had no role in creating them.

"The global powers prepare these conventions based on their own interests and benefits and then their submissive and compliant allies enact them in their countries,” Ayatollah Khamenei told a group of lawmakers in Tehran.

Ayatollah Khamenei cautioned against signing up to "things when we don’t know their eventual consequences, while we know the potential problems, for the sake of some positive aspects." 

•  
•  
•  
•  
•  
•  
•  

 

 

 

 

 

Comments (0)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

---

---

 

 

 

Latest News

• Britain in chaos: MPs reject May's Brexit deal
• ‘US sponsoring regime change in Venezuela’ 
• Iran to US: Era of meddling in other countries over
• 'Russia’s 2 strategic submarines to join navy by year-end'
• Berlin digital archive seeks to ‘build up a new Syria’
• Iran, Iraq hail ‘turning point’ in ‘strategic’ ties
• EU warns US against military action on Venezuela
• Vote for my deal or face Brexit collapse: UK PM
• ‘Water, food drying up in Syria’s Rukban refugee camp’
• NASA to open untouched Moon samples after 50 years
• Macron invited to attend Rwanda genocide anniversary 
• Video: Israeli soldiers manhandle Palestinian women 
• Biden running for president in 2020: Lawmaker
• UK’s citizenship-stripping practice racist: Analyst

More Articles

[screwball]

Syria, Iran set up non-dollar payment channel 

Wed Jan 30, 2019 08:31AM [Updated: Wed Jan 30, 2019 09:37AM ]

1. Home
2. Iran
3. Economy

Heads of Iranian and Syrian chambers of commerce sign documents for cooperation in Damascus, Jan. 29, 2019. (Photo by SANA) 

Iran and Syria have enabled their banks to conduct transactions in their local currencies and non-dollar foreign currencies, lifting a key hurdle to their trade and investment.

Iranian Vice President Es’haq Jahangiri is currently visiting Syria with a delegation of traders who are looking for opportunities in a country facing a mammoth task of reconstruction after war. 

An almost non-existent banking link between the two countries has always been a niggling problem which has held up projects from moving forward.

The banking issue is the “most important problem,” Mohammad Saeed Shahmiri, an executive with the Iranian company Saab Niroo which specializes in building infrastructure, told Reuters.

His firm is studying projects in and around Damascus, according to the news agency. “We hope if they solve this problem, immediately we can start the project here,” Shahmiri said.

Because of terrorist attacks and US-led bombings, millions of homes, educational and health facilities, and infrastructure remain either damaged or destroyed.

Iran is best placed to play a leading role in their reconstruction because it is currently the Middle East’s largest producer of cement and steel.

Western sanctions on both Syria and Iran have affected banking transactions between the two countries which are cut from the US financial system.    

Chairman of the Syrian chambers of commerce Mohamad Hamsho said agreements had been concluded to “overcome obstacles with respect to the banking activity between Iran and Syria.”

Jahangiri, addressing an Iranian-Syrian business forum in Damascus, also said “ministers confirmed that banking transactions will take place very soon between the countries.”

On Monday, Iran and Syria signed 11 agreements, including a “long-term strategic economic cooperation” deal which includes industry, trade and agriculture.

PressTV-Iran, Syria shaping up Mideast with 'strategic' deal

The signing of 11 agreements by Iran and Syria is a sign of changing winds in the Middle East which is shaping up to the results of an atrocious war.

The agreements covered a wide range of fields including economy, culture, education, infrastructure, investment and housing, the official SANA news agency reported.

They included two memos of understanding between the railway authorities of the two countries as well as between their respective investment promotion authorities.

Syrian Prime Minister Imad Khamis said the two sides also agreed to rehabilitate the ports of Tartus and Latakia and build a 526 megawatt energy plant.

According to Syrian state media, the $413 million power plant in Latakia will include building a gas pipeline from Baniyas to fuel it.

[screwball]

EU plans to do all oil transactions with other states in euros: Iran

Thu Dec 6, 2018 02:56PM [Updated: Thu Dec 6, 2018 03:33PM ]

1. Home
2. Iran
3. Economy

The European Union plans to use its own currency instead of the US dollar in all oil deals with other states. (Photo by Bloomberg)

The European Union is going to ditch the US dollar and use its own currency in oil contracts worth 300 billion euros, an Iranian official said, quoting a European commissioner.

“Based on the news I recently received and was confirmed by a European commissioner, from now on, the EU is going to ditch the US dollar and just use the euro in the financial transactions of all European oil deals with other countries,” said Iran’s nuclear chief, Ali Akbar Salehi, on Thursday.

Speaking to reporters, the head of the Atomic Energy Organization of Iran (AEOI) said the amount of these transactions is more than €300 billion.

“Previously, the EU used to pay 85 percent of the money for the oil it purchased from other countries in US dollars, but now with this new mechanism, all the money will be paid in euros,” he said.

Once the mechanism takes effect, the US dollar will be isolated as a global currency, and the US will no longer be able to use dollars in the current dominating way, Salehi added.

His comments came one day after the EU commission presented its plan to reduce the dollar's overwhelming dominance of the global economy and to strengthen the role of the euro, particularly for energy transactions.

European capitals are increasingly frustrated with the global dominance of the dollar as a reserve currency, which hands the United States unparalleled diplomatic and economic power in a globalized world.

Governments, banks and multinationals are at the mercy of US authorities, which have the legal power to switch off access to the world economy if any company or country runs afoul of Washington.

"In the current context of incertitudes – trade conflicts, extra territorial sanctions by the US – the market participants are looking for alternative," said EU economics affairs commissioner Pierre Moscovici at a news conference in Brussels.

PressTV-EU promotes euro to stop dollar dominance

The EU commission presented its plan to reduce the dollar's overwhelming dominance of the global economy.

The single currency – born on January 1, 1999 – "should reflect the political, economic and financial weight of the eurozone", the single currency bloc of 19 EU countries, said European Commission Vice-President Valdis Dombrovskis.

The share of the euro in global holdings of foreign exchange reserves currently stands at around 20 percent, according to the commission. The US dollar, by comparison, is over 60 percent.

After a strong start, the international stature of the euro suffered greatly during the eurozone debt crisis as the financial markets lost faith in the single currency.

The most frustrating recent example for the EU is Iran, where international companies that choose to trade with or invest despite US sanctions are vulnerable to punishment by Washington if they use the dollar.

In order to resolve the issue, Europe has promised to establish the Special Purpose Vehicle (SPV), a mechanism which is supposed to bypass US sanctions against Tehran.  

PressTV-US using dollar as weapon to pressure Europe: Iran

The US government has been using dollar as a weapon to force other countries into supporting its policies, says an Iranian diplomat.

SPV to be launched by year-end

In his Thursday remarks, Iran’s nuclear chief expressed hope that the SPV will be in place by the end of December.

It is not easy to build consensus among 27 members of the European Union, he said, quoting European officials as saying that they are doing their best to finalize the mechanism, and that its development is in its final stages.

“Based on the pledges that the Europeans have made, we hope that Europe’s proposed package would become operational by the end of the current year,” Salehi added.

PressTV-Iran's patience running out on EU pledges: Salehi

Iran's nuclear chief warns the European Union that Tehran's patience is running out on the bloc's lack of delivery on its economic pledges.

Salehi’s comments echoed Wednesday remarks by Iranian Foreign Minister Mohammad Javad Zarif who also quoted Europeans as saying that the SPV will be launched very soon.

“The Europeans told me in Geneva, and my colleagues in Brussels, that the final arrangements for the SPV have been made,” Zarif said, but at the same time noted that the EU has kept the process confidential for fear of the US which may disrupt the SPV if it is made aware of the details.

In a Tuesday report, Al-Monitor quoted European sources as saying that the SPV will be announced in January.

“It is likely that it will be used initially to facilitate trade in food and medicine and consumer goods to avoid attracting unwanted scrutiny from the US Treasury Department,” the report said.

“The Europeans have indicated that other countries may be welcome to join the SPV or that there may be multiple SPVs for different types of trade,” it added.

•  
•  
•  
•  
•  
•  
•  

 

 

 

 

 

Comments (82)

 

 

 

 

 

 

 

 

 

 

 

 

crescent moon14.02 07:55

HURRAY !! a beginning . . . . .

Reply

 

+0

-0

 

 

Watcher01.01 11:57

Not sure the idea of SVP to use for OIl imports in Euro instead of $ wasn't under consideration well before the hysterical sanctions, while Iran will see the finger pointing.

It is up to Iran to start selling oil with limited quantity in order to test the operational functionality of SVP, and convenient use of the money. Otherwise, may opt to control the sale volume only for humanitarian necessities. There is no point to pile up the oil money in a blocked account.
In such a circumstance, it's more meaningful to sell the oil in RIALS. Most of the country's spending is in Rials anyway.

Reply

 

+0

-0

 

 

espionage is terror2018.12.24 16:27

Iran should steadly buy gold to significantly increase her gold reserve and move it inside of the country and if needed use a portion of it as a mean to reduce her internal debts and keeping the wealth inside the country than selling it in form of forign exchange that will eventually leave the country for good if not wasted on forign trips.

Reply

 

+0

-0

 

 

show more

---

---

 

 

 

Latest News

• Britain in chaos: MPs reject May's Brexit deal
• ‘US sponsoring regime change in Venezuela’ 
• Iran to US: Era of meddling in other countries over
• 'Russia’s 2 strategic submarines to join navy by year-end'
• Berlin digital archive seeks to ‘build up a new Syria’
• Iran, Iraq hail ‘turning point’ in ‘strategic’ ties
• EU warns US against military action on Venezuela
• Vote for my deal or face Brexit collapse: UK PM
• ‘Water, food drying up in Syria’s Rukban refugee camp’
• NASA to open untouched Moon samples after 50 years
• Macron invited to attend Rwanda genocide anniversary 
• Video: Israeli soldiers manhandle Palestinian women 
• Biden running for president in 2020: Lawmaker 
• UK’s citizenship-stripping practice racist: Analyst

More Articles