Iranian Rial

screwball · December 4, 2016

will soon move to tame currency prices in the Iranian market

love this talk gets excited....only one way to do this is called a single rate and exchange rate unification!

Edited December 4, 2016 by screwball

screwball · December 4, 2016

ndia’s UCO Bank Ltd will open its Tehran office by the yearend, Iran’s Foreign Minister Mohammad Javad Zarif said, citing a top official with the Central Bank of India as saying.

Speaking at a joint economic forum in New Delhi on Saturday, Zarif regarded the prospective move as a significant step toward improving bilateral relations between Iran and India, IRNA reported.

“As the backbone of economic ties, it’s my hope to see mutual banking cooperation make rapid headway,” he said.

Also present at the forum was Gholamhossein Shafeie, the head of Iran Chamber of Commerce, Industries, Mining and Agriculture, who leads representatives of 38 companies affiliated to ICCIMA in the visit to the South Asian country. Fifteen startup firms and eight banks are also accompanying the foreign minister.

“Bilateral trade between Iran and India has the potential to grow to $30 billion a year,” Shafeie said while addressing the New Delhi forum.

According to the Islamic Republic of Iran Customs Administration, bilateral non-oil trade stood at $4.8 billion in the last Iranian year (ended March 19, 2016), down 32% compared to the year before. IRICA’s latest statistics on two-way commerce show Iran exported 5.1 million tons of non-oil goods worth $1.6 billion to India during the seven months to October 21, to register a 3% increase in value year-on-year. Imports stood at 762,000 tons worth $900 million, indicating a 36% decline. Iran’s exports to India mainly include gas condensates, petrochemicals, steel products, gypsum, date and pistachio. Imports mostly include rice, steel products, iron ore, aluminum oxide, industrial machinery, pharmaceuticals, tea, banana, paper and wood.

Following his trip to India, Zarif will visit China and Japan.

screwball · December 4, 2016

Hope it takes longer than this...

Rouhani submit the draft budget to the Iranian parliament

04/12/2016 11:28 | Number of Views: 89

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[rtl]Direction Press / Agencies[/rtl]

[rtl]Iranian President Hassan Rowhani, the Islamic Shura Council gave on Sunday morning, the new draft budget for the fiscal year that will begin March 21, 2017 law.[/rtl]

[rtl]As President Rouhani gave an explanation about some of the new financial budget for the project properties in the public meeting of the Council of the Islamic Shura Council.[/rtl]

[rtl]For his part, eighth President of the Council, Ali Larijani, after receiving the draft, the government's efforts in the delivery of the budget when it will be a project.[/rtl]

[rtl]Larijani said that the draft will be distributed to all MPs to give their comments on them to specialized committees, and that efforts will be concentrated to complete discussed during the next couple of months and it is hoped adopted until the end of the Iranian year (ends March 20 / March 2017).[/rtl]

screwball · December 4, 2016

President: Single-digit inflation rate to reduce investment risks

Tehran, Dec 4, IRNA – President Hassan Rouhani stressed that a single-digit inflation rate will reduce investment risks for both domestic and foreign companies.

Addressing the Majlis open session here on Sunday when he was presenting the next Iranian calendar year budget bill to the parliament, he said the materialization of eight percent economic growth which is deemed as necessity by the Sixth Development Plan will come true only through reinforcing the basics of infra-structural economy.

He expressed happiness over the fact that his government has managed to improve economic stability and predictability by reaching a single-digit inflation rate.

He stressed that the achievement came despite the fact that the government suffered from growth minus employment for a long period which spanned from 2005-2012.

President Rouhani further said that the huge number of educated people who are joining the labour market with simultaneous growing rate of women’s economic contributions hassled to remarkable increase growth in the country’s economic growth in the past eight seasons.

He went on to note that thanks to the openings happened to the country after the signing of the Joint Comprehensive Plan of Action (JCPOA) last year, Iran has managed to increase the volume of its oil production thus reducing the negative impact of low oil prices on domestic economy.

With positive prospect for entrepreneurship emerging in the country in spring (March 21-June 20, 2016), the President added, the economic growth stood at 4.4 percent with the figure for industrial sectors standing at 4.2 percent.

He said the figures paved the way for accomplishment of 5 percent or even higher growth rate for the current year.

Elsewhere in his remarks, President Rouhani went on to point to his government’s achievements in public health areas and said that in the past three years 74.4 percent of population have received targeted health services.

In agricultural sector, he said, the government has managed to focus on projects to safeguard and improve water and soil resources and also increase wheat production.

As for oil and gas sectors, he said in post-sanctions era industry has increased its production of crude oil from 2.7 million barrels per day in the first half of 2013 to 3.8 million barrels per day in September 2016.

President Rouhani presented the draft budget for the next Iranian year (to start March 21, 2017) to the country’s Majlis (Parliament) on Sunday.

As per the internal regulations of Majlis, the administration should present the annual budget bill to the parliament by December 5 each year.

The Iranian Lawmakers will have ten days for discussions on the bill in the subcommittees of the parliament.

The subcommittees will then review lawmakers' suggestions and finalize a report to a parliamentary ad hoc committee reviewing the budget within 15 days.

The committee should discuss the budget bill within 15 days and provide its final report for a second reading in the open session of Majlis.

Parliamentarians will then confer the final bill. If approved, the budget bill will then be sent to the country’s Guardian Council, whose approval is needed for the bill to be signed into law.

On Thursday, the president announced the budget bill for the next Iranian fiscal year of 1396 (March 21, 2017-March 20, 2018) is 3,200,000 billion rials (about 100 billion dollars).

The president said the administration will allocate 600,000 billion rials for development projects and the budget is hoped to be met.

He added that the budget pays special attention to five sectors, including employment, water, sewage treatment, the environment and railway, as they will be government priorities in the next year and government approach in the Sixth Five-Year Economic Development Plan (2016-21) will be in their favor.

1424**1771

screwball · December 4, 2016

The President made the remarks while addressing the parliament’s Sunday morning open session where he went to present his proposed budget bill for the next Iranian year (to start March 21, 2017).

He said the timely presentation of the budget bill to the parliament indicates the government’s respect to the dignified position of Majlis and also its commitment to financial discipline and regulations.

He said the single-digit inflation rate is an achievement for his government which will have enduring results.

President Rouhani said his government managed to constitute the achievement by adopting realistic and pragmatic approaches while focusing on crises and problems according to their priorities.

Noting that none of the governments in the history of the Islamic Republic started work while the inflation rate stood at a rate of plus 23 percent, he said the figure stood at over 40 percent when he took office three years ago.

He said he stood loyal to his promise of reducing the inflation rate to a single-digit figure and managed to lower it to minus 10 just in less than three years.

President Rouhani on Thursday announced the budget bill for the next Iranian fiscal year of 1396 (March 21, 2017-March 20, 2018) is 3,200,000 billion rials (about 100 billion dollars).

The president said the administration will allocate 600,000 billion rials for development projects and the budget is hoped to be met.

He added that the budget pays special attention to five sectors, including employment, water, sewage treatment, the environment and railway, as they will be government priorities in the next year and government approach in the Sixth Five-Year Economic Development Plan (2016-21) will be in their favor.

The president said good measures have been taken in the oil and gas sectors and as of late last year, when the JCPOA was in force, oil and gas condensate output started upward growth and following recent OPEC decision for 1.2 million barrels output cut, oil price will start increasing.

According to the Chief Executive, the amount of production reduction and share of the members in the OPEC output cut are clear. 'However, the Islamic Republic of Iran which lagged behind due to sanctions, has been excluded from the rule and will add up to its production as of the next months.'

'Under such conditions, oil price will naturally increase. The budget of 320 billion rials has hence been predicted and planned.'

Elsewhere in his remarks, the president put number of active workforce at 1.2 million and said it lays a heavy burden on the officials.

Based on the statistics available, jobs have been created for 714,000 of the group but about 500,000 of them are still unemployed, said the president, adding that on this basis the unemployment rate will keep growing.

1424**1771

screwball · December 4, 2016

Swiss economy min. to visit Iran

News ID: 3839932 - Sun 4 December 2016 - 09:53

Economy

TEHRAN, Dec. 04 (MNA) – Chairman of Iran-Switzerland Chamber of Commerce has announced that Switzerland’s minister of the economy will travel to Tehran in the coming week.

Sharif Nezam-Mafi noted that Johann Schneider-Ammann, Head of Federal Department of Economic Affairs (FDEA) as Switzerland's ministry of the economy, will lead a delegation comprising Director of the Swiss State Secretariat for Economic Affairs (SECO) Marie-Gabrielle Ineichen-Fleisch, directors of Swiss National Bank (SNB) and private banks as well as private sector activists of the European country.

The Iranian official underlined that simultaneity of the visit by economy minister of Switzerland, as one of the most important members of the European Union (EU), with the rise of Donald Trump as President of the US could hold particular significance.

“Upon election of Trump in US, concerns have emerged on implementation of the nuclear deal and the Joint Comprehensive Plan of Action (JCPOA),” said Nezam-Mafi adding “the forthcoming visit will provide economic officials of Iran and Switzerland with the opportunity to discuss venues for expansion of economic, political, cultural cooperation.”

He went on to evaluate banking and financial challenges as the most formidable barriers to development of bilateral ties between the two countries adding “the visit of Swiss economy minister and SECO director mainly pertains to banking negotiations concerning resolution of banking and financial transactions between the two sides.

Swiss authorities are slated to meet with officials of the Central Bank of Iran (CBI) as well as heads of private banks in order to conduct extensive talks so that they can reach solutions to existing obstacles which hinder development of economic relations.

Sharif Nezam-Mafi, Chairman of Iran-Switzerland Chamber of Commerce, said the Swiss delegation will also visit Mahak Society to support Children Suffering from Cancer in Tehran and will have a dinner banquet in the charity organization.

“NGO and charitable activities receive great momentous in Switzerland and the Swiss economy minister and his accompanying delegation will therefore visit Mahak Organization, as a successful charity, in order to become familiar with child care activities carried out in the center.

The official also stated that, during the three-day visit, the Swiss delegation is also scheduled to hold meetings with private sector activists of Iran.

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screwball · December 4, 2016

Turkey proposes to trade in local cash with Iran, others

Sun Dec 4, 2016 6:11AM

Turkish President Recep Tayyip Erdogan has proposed to trade in local currencies with Iran, Russia and China.

Turkey has proposed to establish a mechanism to trade in local currencies with Iran as well as China and Russia.

Turkish President Recep Tayyip Erdogan was quoted by media as saying that he had already proposed Russian President Vladimir Putin to conduct trade between the two countries with local currencies.

“I proposed Putin the following: Let’s do our trade in local currencies. Whatever I buy [from you] I shall pay you in Russian ruble, and whatever you buy from me make the payment in Turkish Liras,” Turkey’s Hurriyet newspaper quoted Erdogan as saying.

He added that he had made the same offer to China and Iran and his offer was found reasonable.

“We have given the necessary instructions to our central banks and we will try to conduct such [trade] relationships between us through this way,” Erdogan said.

The Turkish president said last April that Tehran and Ankara had decided to double the volume of bilateral trade while phasing out the US dollar as the dominant currency for their transactions.

"I believe there is some trouble with transferring funds due to the sanctions [imposed on Iran]," Erdogan was quoted by the Turkish media as saying at the time.

“We … want bilateral trade to be conducted in local currencies. Iranian Central Bank officials and our Halk Bank chairman will discuss the matter."

Iran is yet to react to Turkey’s proposal. The country has nevertheless already started talks with Russia to ditch the dollar and trade in their own currencies.

Russian Industry and Trade Minister Denis Manturov said last December that Moscow was working on a plan to switch to national currencies in mutual trade with Iran. Manturov added that the policy was based on an expected surge in trade between Iran and Russia.

screwball · December 5, 2016

The US dollar was sold for 39,500 rials in Tehran market on Sunday to mark a 2.4% growth compared with the previous day’s close of 38,600 rials.

Reports suggest some moneychangers had sold the currency for as high as 39,800 rials. The currency, however, lost some ground and closed at 39,100 in late trade.

The greenback had begun a surprise rally from 37,500 about 10 days ago, reaching its highest rate in at least four years. However, it lost some ground on Saturday by reaching 38,600 rials, following the statement of the Central Bank of Iran’s governor that the swings are short-lived.

Sunday's rate for the American currency was unprecedented during the tenure of President Hassan Rouhani who took office in mid-2013.

The jump in rates initially was triggered after Donald Trump’s unexpected victory in the US presidential election last month. However, the US Senate’s vote for extending Iran Sanctions Act on Friday is said to have impacted the market on Sunday.

The CBI and the government have also been accused of increasing forex rates, mainly to compensate for the budget deficit, which claims have been strongly rejected by both.

The government handed next year’s annual budget bill to the parliament on Sunday, in which the rate for the US dollar is set at 33,000 rials. The official exchange rate for dollar was set at 32,087 rials, unchanged compared with the previous day’s close.

Elaborating on reasons behind the currency market fluctuations, Kourosh Parvizian, CEO of Parsian Bank and the head of the Association of Private Banks, said the dollar's bull run was mainly caused by growth in demand for the currency “like for travelling to Iraq earlier this month [to attend religious ceremonies there]”.

Parvizian also criticized experts and economists for making unrealistic comments about the market, “especially those who exert influence on the market”.

“Policymakers and experts should be more cautious about what they say, since they might disrupt the forex market,” he said.

The banker added that policymakers could regulate the rates by reforming the regulations. He provided no more details.

Euro was traded at 41,900 rials on Sunday, up by 300 rials compared with Saturday’s close. The British pound exchanged hands at 49,400 rials up from the previous day’s 48,450 rials.

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screwball · December 5, 2016

New Zealand Trade Minister Todd McClay emphasized the development of business and banking relations with Iran following the lifting of sanctions in January, saying his presence in Iran shows how much his country is eager to speed things up.

“New Zealand has the highest volume of trade in the Middle East with Iran and when the Iranian foreign minister travelled to New Zealand, the capacity of business dealings between the two countries was estimated to reach $1 billion,” McClay was quoted as saying by the official website of the Central Bank of Iran.

“To reach this level of cooperation, business and banking ties between the two countries must pick up and a good understanding must form between the corresponding business sectors,” added the minister in a meeting with Central Bank of Iran Governor Valiollah Seif.

The Kiwi minister said he had relayed to New Zeeland banks the upside of working with Iran in the post-sanctions era.

According to the South Pacific country’s trade minister, Iran is now among countries officially dealing with the New Zealand Export Credit Office.

“The NZECO has now included Iran among the countries it officially does business with and that is telling of the commitment of the New Zealand government to expand ties with Iran,” he said.

“After the suspension of the sanctions, there are now many opportunities to reestablish business ties and many possibilities have been created in the fields of education, construction, food, energy, forestry, production and services.”

At the beginning of the current fiscal year in March, the Export Guarantee Fund of Iran and NZECO signed a memorandum of understanding to cooperate in co-insurance, reinsurance, credit assessment, claims prevention and recovery of debts that help exporters of both countries.

The MoU was signed by New Zealand’s Foreign Minister Murray McCully and his Iranian counterpart Mohammad Javad Zarif during his trip to Wellington.

Noting that he wishes for these meetings to help accelerate bilateral ties, McClay pointed out that this is New Zealand’s first trade mission to Tehran in 12 years.

The day before, the Iran Chamber of Commerce, Industries, Mines and Agriculture hosted McClay and his delegation, which consists of 30 representatives from economic sectors, including agriculture, food, new energies and tourism.

McClay also pointed to the history of links between Iran and his country, noting that the New Zealand Embassy was established in Iran in 1975, which makes Iran the oldest country in the Middle East to have formal relations with New Zealand.

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screwball · December 5, 2016

The Central Bank of Iran will issue a new foreign exchange directive in the foreseeable future in line with its new forex policies, the bank’s governor said.

“Meeting currency demand for the import of goods and services, supplying currency to reimburse installments of foreign exchange loans from the resources of the agent bank and helping customers obtain foreign exchange loans are among the points addressed by the new directive,” Valiollah Seif was quoted as saying by CBI’s official website.

According to Seif, the new directive will be issued in the near future.

“The remittance fee required by brokers for transferring money, return on foreign investment and the credit needed for project finance are among other issues that will be covered in the new directive,” he added.

The official says the central bank is fully ready to make up for the hard currency shortage faced by the banks.

“The CBI aims to tackle the foreign exchange deficit of the banks and in order for this process to take place, the banks are free to open letters of credit and operate at open market forex rates with CBI support,” he said.

Seif then commented on the recent fluctuations in US dollar parity rate in the Iranian market, saying they have been mostly caused by periodic changes.

“Forex swings take place periodically at this time of the year, as it had in previous years,” he said. “Another major reason for it could be the handling of forex operations related to foreign trade by moneychangers instead of banks–something that emerged during the sanctions era.”

A few days ago, the CBI governor had taken to the social messaging app Telegram to address the issue, saying “as economic facts do not support the recent fluctuations in the currency market, the nature of these swings is not telling of lasting effects”.

On Sunday, the US dollar reached its highest rate against the rial in the past four years and was traded for 39,600 rials before losing some ground later in the day.

Noting that the banks can now purchase foreign exchange incomes generated from the export of non-oil goods and services from individuals and companies at market rates, Seif expounded on the benefits of CBI’s new directives for the banking network. “The banks will be able to generate good profit by shoring up their forex operations and decrease the operational risk of businesses while making their clients’ payments and forex dealings safer,” he said.

Seif, who is also the head of the Money and Credit Council, emphasized that Iranian banks must immediately move to accelerate their banking services, adding that forex operations done with the aim of improving production and attracting foreign investments can prove “very effective” in realizing the goals set by Leader of the Islamic Revolution Ayatollah Seyyed Ali Khamenei in the framework of Resistance Economy principles.

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screwball · December 5, 2016

President Hassan Rouhani submitted the budget bill for the 2017-18 fiscal year, which begins in March, to parliament on Sunday.

The bill projects larger revenues from taxes and oil exports, though the weaker exchange rate for the rial against the dollar will put next year's budget firmly below this year in dollar terms.

The total amount of the budget is 3,711 trillion rials, which puts it 10.6% over the 3,354 trillion rial budget passed into law for the current year.

Also, government companies, banks and for profit organizations which had 6,828 trillion rials this year will get 7,565 trillion rials to finance their operations.

> Higher Crude, Weaker Rial

The government has projected a stronger dollar and a higher price for crude oil in the March 2017-18 budget bill. It set the greenback's exchange rate at 33,000 rials, up from last year's 29,970 rials, and still far lower than the 39,600 rial/dollar in Tehran's markets on Sunday.

OPEC's third largest crude oil exporter is assuming an average oil price of $50 a barrel, up from the current $40. Iran and other oil-producing countries recently agreed to limit production in order to drive up prices.

With the $50 crude and 33,000 rial dollar, the administration expects 1,100 trillion rial revenue from oil exports including export of natural gas and condensates.

Also, taxes are projected to rise 1,130 trillion rials, up from last year's 1,010 trillion rials figure.

As for the 620 trillion rials earmarked for investment, the "government projects deemed profitable will get funding," the president told lawmakers on Sunday. Eligible projects will be funded jointly by the government, the National Development Fund of Iran, a sovereign wealth fund that receives part of the country's oil revenues, commercial banks and private contractors

The administration has made special provisions for investment in jobs, railroad development, water, sewage, and environmental projects, Rouhani told reporters earlier.

Clarification: The Tribune mistakenly reported a 4.6% contraction in the budget on Saturday, based on Rouhani's remarks in Mashhad on Thursday. The president had cited 3,200 trillion rials, which IRNA reported as the general budget figure. However, the 3,200 trillion rials excludes 511 trillion rials in revenues made by ministries, which must be added to the latter to arrive at the total budget. We apologize for the inadvertent erroir.

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screwball · December 5, 2016

ERGO Group, one of the largest insurance groups in Europe, is keen on entering Iran’s insurance market, Alexander Ankel, chief operating officer of ERGO International, told the 23rd International Conference on Insurance and Development in Tehran on Saturday.

“Several new insurance companies have been established in Iran in recent years, which indicate [the Iranian] market’s high potentials,” IRNA quoted Ankel as saying.

“We are aware that Iran has managed to considerably increase the insurance penetration rate to 2%, despite the hardships caused by sanctions against the country,” he added.

Established in 1997, EGRO operates in over 30 countries, especially in Europe and Asia. In Europe, ERGO claims to be number one in the health and legal expenses insurance segments, and is among the market leaders in its home market of Germany.

Munich Re owns 99.96% of ERGO’s shares. Earlier this month, the major reinsurer expressed interest in returning to Iran, during a meeting with Iranian top officials in Germany.

Iranian insurance firms reportedly held meetings with 40 insurers from Germany, the UK, France and Azerbaijan Republic on the sidelines of the event.

According to Iranian Insurers Syndicate, 38 well-known foreign experts also made speeches during the conference.

Gov’t Stance

Economy Minister Ali Tayyebnia also called on the Central Insurance of Iran and Iran Insurers Syndicate to clear the path for foreigners’ partnership and investment.

“We are not trying to transfer risks to foreigners but we want them to invest in the industry,” he said in comments to the opening ceremony of the conference on Saturday.

“So far, foreigners’ presence has been limited to liaison offices. CII should take the necessary measure needed for establishment of foreign insurers’ branches in Iran and supervision of their operations.”

Tayyebnia noted that the Industry’s top regulator should also ease the conditions for foreigners interested in investing in the Iranian market. The economy minister also announced that the VAT Removal Bill will be sent to the parliament next month. If approved, the bill will exempt the insurance industry from taxes.

Reuters reported last month that western insurers are slowly reaching deals with Iran, as they seek to reenter the multibillion dollar market. This is while the pace of business is hampered by banking restrictions 11 months on from the lifting of international sanctions.

Insurers and reinsurers from the UK, Germany, France and Japan have reportedly held talks with CII over entering Iranian market in the post-sanctions era.

Topics

European Insurers in Iran Int'l Conf on Insurance and Development

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screwball · December 5, 2016

Iran's Parliament has urged the government to act on a 2015 Majlis bill in response to a US Congress measure that only awaits an expected presidential approval to reauthorize the Iran Sanctions Act for another decade.

The call came in a statement read out in the parliament's Sunday session, IRNA reported.

The US Congress has voted almost unanimously to pass the ISA extension.

ISA has been in effect since 1996 and will expire on Dec. 31, if not renewed.

Iran reached an agreement with the United States and five other powers in July 2015, formally known as the Joint Comprehensive Plan of Action, to get sanctions relief in return for temporary curbs on its nuclear program.

In their statement, lawmakers singled out clauses 3 and 7 of the nine-clause legislation titled "The Iranian Government's Reciprocal Action on Implementation of JCPOA", which stipulate the response expected of the government against the Congress move.

Those clauses oblige the government to stop cooperation on the deal in the event of any breach by the other side and move to restore pre-deal levels of nuclear activity and requires it, along with the armed forces, to take measures for boosting defense capabilities and defending allies of the Islamic Republic against the threats of terrorists.

Republican US president-elect, Donald Trump, had criticized the pact during his election campaign for the White House.

Other members of his party, who control the Congress, unanimously oppose the historic agreement and have introduced numerous measures to interfere with its implementation.

US State Department Spokesman John Kirby said on Friday that President Barack Obama is expected to sign the bill into law, but noted that Secretary of State John Kerry would ensure that the reauthorized ISA only involves non-nuclear sanctions.

The UN-endorsed JCPOA says, "The US administration, acting consistent with the respective roles of the president and the congress, will refrain from reintroducing or reimposing the sanctions … it has ceased applying under this JCPOA. Iran has stated that it will treat such a reintroduction or reimposition of the sanctions … or such an imposition of new nuclear-related sanctions, as grounds to cease performing its commitments under the JCPOA in whole or in part."

***Clear Breach

Iranian statesmen have railed against the ISA renewal, with Leader of Islamic Revolution Ayatollah Seyyed Ali Khamenei warning late last month that should the bill be passed into law and implemented, Iran will treat it as a breach of the deal and would retaliate.

"The current US administration … has so far committed numerous infringements in relation to the nuclear agreement," Ayatollah Khamenei said.

"If the extension is enforced, it would constitute a violation of the JCPOA, and they should know that it would definitely prompt a response by the Islamic Republic."

President Hassan Rouhani echoed the Leader's view, describing the Congress bill as a "clear" breach of the deal and calling on his US counterpart to use his executive power to block it.

"The US president is bound to use his authority to prevent its enforcement," he told the Majlis session.

"The implementation of the legislation would be a clear violation of the action plan and result in our firm response. Even its signing by the US president would be viewed as a breach of the US commitments and would face a proper response."

Foreign Minister Mohammad Javad Zarif has said the extension of anti-Iran sanctions, while further tarnishing the image of the US government as an unreliable partner, will not negatively affect the Islamic Republic.

"To the world community, the extension of sanctions against Iran shows the unreliability of the American government," he said.

"What was done at the Senate, even if it is signed by the US president, has no executive effect and from the standpoint of the international community, it shows the lack of credibility of the US government, which acts against its own commitments."

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screwball · December 5, 2016

Japan's Itochu Corporation signed a deal on Saturday to lend €320 million ($341 million) to the Persian Gulf Petrochemical Industry Company (PGPIC) for infrastructure development.

The agreement was signed by PGPIC executive director Adel Nejad-Salim and top officials from Itochu Corp and the Japanese Embassy in Tehran, state news agency IRNA reported without naming the Japanese officials.

Nejad-Salim pointed to the presence of Japanese companies in Iran and said, "We are happy that Itochu Corp has decided to expand collaboration in Iran. We have a huge capacity for production of petrochemicals, polyethylene in particular."

According to published reports, PGPIC has been seeking foreign investment of up to €1 billion with short- and mid-term payment periods following the lifting of international financial and trade restrictions against Tehran in January.

According to the news agency, PGPIC will receive the loan under a financing method known as usance letter of credit.

A usance LC usually includes a date of repayment that is no more than six months from the date the LC is issued, making the letter of credit a useful financial tool for meeting short-term investments.

Itochu Corp is Japan's second-largest general trading company after Mitsubishi Corporation. It is active in industries such as energy, chemicals, machinery, metals, minerals, food and textiles with annual revenues of $145 billion.

PGPIC is Iran's largest petrochemical company with over 60 subsidiaries, owning more than 11% of Iran's capital market. Its exports are estimated at $8-9 billion per year. According to published reports, PGPIC is the second biggest petrochemical exporter in the Middle East.

Japanese conglomerate Marubeni Corporation reportedly signed a similar financing agreement with the PGPIC in September. Nippon Export and Investment Insurance (NEXI), Japan's state export credit agency, will reportedly provide insurance for the loan.

------- Petrochem Plans

Tehran is making efforts to triple annual petrochemical production capacity from the present 65 million tons to more than 180 million tons in a decade by opening up the sector to foreign investors. Japanese companies have been proactive in expanding their role in Iran's energy market.

In October, state-owned National Petrochemical Company signed a memorandum of understanding with Japan's Sojitz Corporation to establish a methanol-to-propylene plant in Iran.

Yokohama-based Chiyoda Corporation signed a preliminary agreement earlier this year to carry out major repair works at the Bandar Abbas Refinery in the south.

JX Nippon Oil & Energy Company is in talks over supplying technology and equipment to increase Tabriz Refinery’s efficiency and cut its mazut output

screwball · December 5, 2016

Banks encouraged to resume forex trade now that sanctions lifted

Tehran, Dec 4, IRNA – Governor of the Central Bank of Iran (CBI) Valiollah Seif said on Sunday that Iranian banks were authorized to resume their forex trade, the ordinary operation prevented by international sanctions so far.

Seif said that Iranian banking system is required as per the CBI directive on August 1 to do business in foreign currencies in free exchange rates.

Under the CBI directive, the banks will take leadership from the private exchange shops.

Deputy Governor of the CBI for Foreign Exchange Affairs Gholam-Ali Kamyab says the responsibility for commercial exchange settlements in the market, which used to be handled by banks, were delegated to the exchange shops due to the sanctions on the banking system.

Seif told a group of bankers and international affairs directors of the banking system, that they would resume operations in foreign currency thanks to lifting the sanctions.

Seif said banks can re-activate their forex section, thus reaping good amount of income, minimizing operation risk of the economic activists and making foreign payments and foreign trade safer.
1420**1416

screwball · December 5, 2016

New Zealand willing to set up joint trade committee with Iran

Tehran, Dec 4, IRNA – New Zealand Trade Minister Todd McClay said on Sunday that Wellington government is willing to draw up a roadmap for economic cooperation with Iran and set up a joint committee to promote trade ties.

He made the proposal in a meeting with Iran's Minister of Industry, Mines and Trade Mohammad Reza Nematzadeh in Tehran.

He called for cooperation on research, development and innovation.

Stressing the need for compiling a roadmap for strengthening industrial and trade relations, he said that New Zealand banking and insurance experts are currently on a visit to Iran to help resolve problems facing these sectors.

McClay voiced Wellington's interest to boost ties with Iran, saying that New Zealand boasts of suitable capacities in the refining and dairy industries.

Ne'matzadeh, for his part, said that Iran-New Zealand ties have always been excellent, noting that however proper plans should be made to help raise level of exchanges.

Stressing the need for removal of banking obstacles and strengthening ties between the two countries' banks, he said that bilateral and multilateral talks between the Iranian and New Zealand banks would be useful to regulate the banking and commercial relations.

Nematzadeh said that Iran possesses remarkable capabilities in the oil and petrochemical, agricultural products, communications, plastic and tool manufacturing sectors, and is ready for promoting ties with New Zealand in the spheres.

He declared Iran's willingness for joint investment ventures on implementing projects and transfer of technology know-how, saying that Iran's situation in the region has prepared a suitable ground for using neighboring states' markets of 400-million.

That's for the same reason most of the countries favor boosting ties with Iran, Nematzadeh said.

McClay arrived in Tehran on December 2 at the head of high-ranking trade delegation comprising representatives of 18 companies.

Upon arrival in Tehran, he described Iran as a traditional partner of New Zealand, saying that the two countries' commercial exchanges are projected to reach 708.8 million dollars a year.

The New Zealand minister said in a meeting with Governor of Central Bank of Iran Valliollah Seif that his country has the most commercial exchanges with Iran in the Middle East.
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screwball · December 5, 2016

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Iran’s President Hassan Rouhani proposed on Sunday a state budget of 3,200 trillion rials ($97 billion at the official exchange rate) to Parliament for the next fiscal year, beginning on March 21.

The draft budget bill is up nine percent from the plan for the current year. It envisages a total income of over 1.1 quadrillion rials from selling 2.42 million barrels per day of crude oil at $50. The figure will be equal to around $33 billion, with an exchange rate of 33,000 rials per US dollar.

"Maintaining the growth rate that was launched in the (current) year is the main economic issue for the country and all economic policies should be designed around this axis," Rouhani told Parliament in a speech carried live by national television.

Rouhani portrayed a positive picture of the country’s oil revenues for the next year.

He emphasized that the prospects will be specifically positive in light of the country’s recent “victory” in OPEC to move ahead with its crude oil production and export plans with no limitations.

“Iran has already been able to regain its share of the global oil market,” he told the parliamentarians. “Thanks to the recent victory in OPEC, we will literally face no limitations increasing the production and export of our crude oil over the next few months.”

The OPEC talks over a proposed plan to cut output and help boost prices last Wednesday culminated in a deal that allowed Iran to continue with its oil production at the current capacity, while forcing major cuts on other suppliers. Libya and Nigeria were also excluded from the plan that had been proposed by Saudi Arabia.

"Iran was able to score a major victory in the area of oil diplomacy,” Rouhani emphasized in his speech.

“Through our persistence, we were not only able to preserve the integrity of OPEC, but were also able to … receive an authorization to increase our oil production.”

OPEC’s deal authorized Iran to boost its output by 90,000 barrels per day – the only such authorization agreed on by the organization’s member states.

Rouhani further emphasized that the declining oil prices over the past two years had put the country in hard times.

Nevertheless, Iran was eventually able to overcome the negative impacts of low oil prices by selling more oil after the removal of the sanctions against the country in January, Rouhani emphasized.

“The nuclear deal …helped prevent the Iranian economy from plunging into a crisis as a result of falling oil prices as did many other oil exporters.”

The International Monetary Fund estimates growth of 4.5 percent this year, up from just 0.4 percent last year. Inflation runs at about nine percent.

The draft budget partially loosens the conservative fiscal policy which Rouhani adopted after taking power in 2013.

The current year's budget, compiled when inflation was considerably higher, represents a rise of slightly over seven percent from the previous year's plan.

"We hope to end the (current) year with single-digit inflation, a five percent growth rate and the creation of 700,000 new jobs," Rouhani said.

As in past years, the draft budget shows spending and revenues in balance, although the actual result will depend on fluctuations in oil prices.

Parliament is scheduled to finalize the proposed budget in February.

screwball · December 5, 2016

No excitement.....hard crowd to please! Lol

screwball · December 5, 2016

he Central Bank of Iran will issue a new foreign exchange directive in the foreseeable future in line with its new forex policies, the bank’s governor said.