Iranian Rial

[screwball]

In the latest plan to increase the capital of Iranian public-sector banks, Bank Melli Iran will receive almost half the total amount considered for the plan, the bank’s CEO revealed.

“The Cabinet approved the allocation of 200 trillion rials to increase the core capital of public-sector banks, 93 trillion rials ($2.4 billion) of which will be allocated to increase the capital of Bank Melli,” Mohammad Reza Hossein-Zadeh was quoted as saying by Banker.ir.

The decision obligating the Ministry of Economic Affairs and Finance to make the allocation was taken in the Cabinet meeting chaired by President Hassan Rouhani last week.

Hossein-Zadeh, who was addressing a staff gathering of Bank Melli Iran in the northern province of Mazandaran, said such a measure has been unprecedented after the Islamic Revolution in 1979.

“With this capital increase, the capital adequacy ratio of Bank Melli will reach 6%, which is a very good improvement compared with the past,” he said.

Hossein-Zadeh’s comments come after an analytical report by the research arm of the Iranian Parliament revealed this week that the capital adequacy ratio of the bank is currently negative.

The think tank published a report on the plan to increase the capital of public-sector banks, pinpointing faults while stressing the necessity of the scheme. It also disclosed the capital adequacy ratio for seven public-sector banks, showing that the CAR of only two of them are above the “8% minimum standard” while Bank Melli is the only state-run bank with a negative capital adequacy ratio. 

According to the official directive by President Rouhani approved by the Cabinet, after Bank Melli, Bank Sepah (with CAR at 2.46%) and Agriculture Bank (CAR at 5.47%) will be injected with the highest amount of capital, with each bank receiving 38 trillion rials ($984.9 million) . 

Bank of Industry and Mine (with CAR at 11.90%) and the Export Development Bank of Iran (CAR at 30.86%) will have their capital cushions plumped up by 20 trillion rials ($518.4 million) and 10 trillion rials ($259.2 million) respectively. Finally, Tose’e Ta’avon Bank will receive 1 trillion rials ($25.9 million) to help increase its capital buffer.

Bank Melli Iran is the largest commercial bank of Iran and the Middle East with over 3,300 domestic branches and 43,000 employees. Since 1933, BMI has grown into a large retail bank with several domestic and international branches. Currently, the bank has 18 international branches and services in 11 countries.

The bank is also the top Iranian firm in terms of total assets. 

[screwball]

In the latest plan to increase the capital of Iranian public-sector banks, Bank Melli Iran will receive almost half the total amount considered for the plan, the bank’s CEO revealed.

“The Cabinet approved the allocation of 200 trillion rials to increase the core capital of public-sector banks, 93 trillion rials ($2.4 billion) of which will be allocated to increase the capital of Bank Melli,” Mohammad Reza Hossein-Zadeh was quoted as saying by Banker.ir.

The decision obligating the Ministry of Economic Affairs and Finance to make the allocation was taken in the Cabinet meeting chaired by President Hassan Rouhani last week.

Hossein-Zadeh, who was addressing a staff gathering of Bank Melli Iran in the northern province of Mazandaran, said such a measure has been unprecedented after the Islamic Revolution in 1979.

“With this capital increase, the capital adequacy ratio of Bank Melli will reach 6%, which is a very good improvement compared with the past,” he said.

Hossein-Zadeh’s comments come after an analytical report by the research arm of the Iranian Parliament revealed this week that the capital adequacy ratio of the bank is currently negative.

The think tank published a report on the plan to increase the capital of public-sector banks, pinpointing faults while stressing the necessity of the scheme. It also disclosed the capital adequacy ratio for seven public-sector banks, showing that the CAR of only two of them are above the “8% minimum standard” while Bank Melli is the only state-run bank with a negative capital adequacy ratio. 

According to the official directive by President Rouhani approved by the Cabinet, after Bank Melli, Bank Sepah (with CAR at 2.46%) and Agriculture Bank (CAR at 5.47%) will be injected with the highest amount of capital, with each bank receiving 38 trillion rials ($984.9 million) . 

Bank of Industry and Mine (with CAR at 11.90%) and the Export Development Bank of Iran (CAR at 30.86%) will have their capital cushions plumped up by 20 trillion rials ($518.4 million) and 10 trillion rials ($259.2 million) respectively. Finally, Tose’e Ta’avon Bank will receive 1 trillion rials ($25.9 million) to help increase its capital buffer.

Bank Melli Iran is the largest commercial bank of Iran and the Middle East with over 3,300 domestic branches and 43,000 employees. Since 1933, BMI has grown into a large retail bank with several domestic and international branches. Currently, the bank has 18 international branches and services in 11 countries.

The bank is also the top Iranian firm in terms of total assets. 

[screwball]

In the latest plan to increase the capital of Iranian public-sector banks, Bank Melli Iran will receive almost half the total amount considered for the plan, the bank’s CEO revealed.

“The Cabinet approved the allocation of 200 trillion rials to increase the core capital of public-sector banks, 93 trillion rials ($2.4 billion) of which will be allocated to increase the capital of Bank Melli,” Mohammad Reza Hossein-Zadeh was quoted as saying by Banker.ir.

The decision obligating the Ministry of Economic Affairs and Finance to make the allocation was taken in the Cabinet meeting chaired by President Hassan Rouhani last week.

Hossein-Zadeh, who was addressing a staff gathering of Bank Melli Iran in the northern province of Mazandaran, said such a measure has been unprecedented after the Islamic Revolution in 1979.

“With this capital increase, the capital adequacy ratio of Bank Melli will reach 6%, which is a very good improvement compared with the past,” he said.

Hossein-Zadeh’s comments come after an analytical report by the research arm of the Iranian Parliament revealed this week that the capital adequacy ratio of the bank is currently negative.

The think tank published a report on the plan to increase the capital of public-sector banks, pinpointing faults while stressing the necessity of the scheme. It also disclosed the capital adequacy ratio for seven public-sector banks, showing that the CAR of only two of them are above the “8% minimum standard” while Bank Melli is the only state-run bank with a negative capital adequacy ratio. 

According to the official directive by President Rouhani approved by the Cabinet, after Bank Melli, Bank Sepah (with CAR at 2.46%) and Agriculture Bank (CAR at 5.47%) will be injected with the highest amount of capital, with each bank receiving 38 trillion rials ($984.9 million) . 

Bank of Industry and Mine (with CAR at 11.90%) and the Export Development Bank of Iran (CAR at 30.86%) will have their capital cushions plumped up by 20 trillion rials ($518.4 million) and 10 trillion rials ($259.2 million) respectively. Finally, Tose’e Ta’avon Bank will receive 1 trillion rials ($25.9 million) to help increase its capital buffer.

Bank Melli Iran is the largest commercial bank of Iran and the Middle East with over 3,300 domestic branches and 43,000 employees. Since 1933, BMI has grown into a large retail bank with several domestic and international branches. Currently, the bank has 18 international branches and services in 11 countries.

The bank is also the top Iranian firm in terms of total assets. 

[screwball]

Iranian Carmaker Inks Three Contracts with Germany’s Mercedes-Benz 

News ID: 1310526 Service: Economy 

 January, 28, 2017 - 16:48 

TEHRAN (Tasnim) – The CEO of Iran Khodro Company (IKCO) announced that his company has recently signed three contracts with the German automaker Mercedes-Benz to launch joint ventures. 

Speaking to reporters in Tehran on Saturday, Hashem Yeke Zare said three cooperation agreements have been signed between the IKCO and Mercedes-Benz.

He added that two more contracts between the two companies are in their final stages and will be finalized in the near future.

The official also pointed to a recent contract with France’s PSA Peugeot Citroën, saying the first series of the Peugeot 2008 cars manufactured by the Iran Khodro Company will enter the market in coming months.

Iran’s automotive industry is the second largest in the country after its oil and gas industry, accounting for 10% of the country’s Gross Domestic Product (GDP).

The industry is expected to grow significantly after Iran and six world powers in July 2015 reached a conclusion over the text of a comprehensive deal on Tehran’s nuclear program and started implementing the agreement on January 16.

The nuclear deal between Iran and the Group 5+1 (Russia, China, the US, Britain, France and Germany) terminated all nuclear-related sanctions imposed on Iran.

[screwball]

Sorry about duplicate posts

[pokerplayer]

Stopped by my friends place today that has friends and family in Iran. He chatted with them and they feel that in fact a rate change of some kind is in the works. Totally floored me as I never expected that conversation. While they don't think as soon as March due to Trump coming to power they do believe in the next several months to see something.

Life is in fact getting better as most goods can now be Imported freely choking off the black market which was charging very high prices. Still a ways to go as goods fly off the shelves as fast as they are stocked due to fear that sanctions are a possibility once again they believe.

Sorry no date or rate as these folks are just common people who are connected to no one with any knowledge. I do believe anyone that doe's know is being tight lipped anyways.

File this under the FWIW category.

pp

[WheresmyRV?]

Thanks PP!

[Freedomwish]

15 hours ago, pokerplayer said:

File this under the FWIW category.

pp

Thanks PP......I did mentioned I was calling it a night with my weekend drinks.....but what's a FWIW category?  Cheers and thanks again! 

[screwball]

Iran will stop using the US dollar as its currency of choice in its financial and foreign exchange reports from the new fiscal year that begins in March, announced the governor of the Central Bank of Iran late Saturday.  

"Iran's difficulties [in dealing] with the dollar were in place from the time of the primary sanctions and this trend is continuing, but we face no limitations regarding other currencies," Valiollah Seif also said in a televised interview as reported by CBI's official news website.

Seif gave strong hints that the country may opt for euro in releasing its key economic reports. 

Stressing that the US dollar makes up a meager portion of the country's foreign trade, the official said it would not be logical for the US currency to be the base currency for economic reports under the current circumstances.

"In other words, we have to set a currency as the basis of financial reporting that has better stability and greater application in our foreign trade," he said.

According to Seif, who also heads the Money and Credit Council, the central bank has embarked on the process because Iran conducts the lion's share of its trade deals with the EU, China and the UAE. This leaves the country with the two options of "selecting a basket of currencies or choosing the currency that plays the biggest part in foreign trade".

He announced that the choice currency for financial reporting will change within the next one or two months, adding that in line with this plan, the CBI has focused on signing more currency swap agreements.

"That is why agreements have been reached with various countries, namely Azerbaijan, Iraq, Russia and Turkey, but unfortunately these accords cannot be implemented," he said, citing a lack of suitable imports to match the exports of crude oil as the reason. 

This lack of trade balance, he adds, hampers the flow of capital and "it looks as if we cannot expect these currency swap agreements to come to fruition until a trade balance has been reached".

Forex Reserves Intact 

The CBI governor pointed to safeguarding the country's foreign exchange assets held overseas as a vital issue for Iran in international markets, noting that while the country had no problems regarding the matter before the international sanctions, it became increasingly difficult for the country to hold its reserves in certain countries once sanctions on the country's nuclear program intensified.

That is why Iran's foreign exchange reserves were only kept in countries that purchased its oil, "but fortunately things have changed now and we have the liberty to easily keep our reserves in major European banks and even in their central banks".

In a recent report outlining the achievements of the nuclear accord, CBI reported that since the nuclear deal was implemented in January 2016, more than $9.9 billion of the central bank’s frozen oil money were released and repatriated from the UAE, Britain, India, Greece, Italy and Norway.

The bank added that after the adoption of the interim agreement, $12 billion of its blocked assets were freed from Japan, South Korea and India in the form of installments

On concerns regarding the possibility of a repeated freezing of the country's foreign exchange reserves and a lack of transparency by the central bank about repatriating oil revenues, the CBI governor said there is no need to bring the oil income into the country whatsoever.

"If the question is whether or not we own the oil revenues, then the answer is definitely yes," Seif asserted. "But do we need to bring it inside the country? The answer will certainly be in the negative."

He did, however, note that in emergency cases such as the forex needed for travel or in medical cases, the central bank is willing to bring the hard currency home.

The CBI governor then referred to fluctuations in the Iranian foreign exchange market in the past few months, which saw the greenback rise above the 40,000-rial per US dollar threshold. He said the foreign exchange reserves of the country are currently "in a better state than in other periods and I assure my countrymen that there is nothing to worry about regarding currency reserves".

Seif identified the dominant role of moneychangers in the forex market as one of the reasons behind the rise in currency rates, because of which the central bank is encouraging importers to conduct their foreign exchange dealings through the banking system . 

[screwball]

Just now, screwball said:

Seif gave strong hints that the country may opt for euro in releasing its key economic reports. 

 

Just now, screwball said:

He announced that the choice currency for financial reporting will change within the next one or two months, adding that in line with this plan, the CBI has focused on signing more currency swap agreements.

 

1 minute ago, screwball said:

Iran will stop using the US dollar as its currency of choice in its financial and foreign exchange reports from the new fiscal year that begins in March, announced the governor of the Central Bank of Iran late Saturday.  

Smile baby....where's the drinks...the financial system set to change along with chnaGe to euro and other currencies, hence swap agreements all set for March 21

[screwball]

1. Economy
2. Business And Markets

Monday, January 30, 2017

Bank Melli Installs Forex ATM at Tehran Airport

 

Bank Melli Iran on Saturday installed a forex ATM machine in Imam Khomeini International Airport in south Tehran. The machine provides travelers with foreign exchange after scanning their passport, BMI's website reported. The Central Bank of Iran has announced that the installation of forex ATMs is legal, as long as bankers meet standards set by CBI’s Foreign Exchange Department. Banks are also permitted to trade in foreign currencies at the free market rate. Pouya Company, a knowledge-based firm specializing in banking and payment solutions, has developed the device. Shahr Bank earlier installed the first foreign currency exchange ATM in Hasheminejad International Airport in Mashhad in northeast Iran. BMI has also installed cashless ATMs in the airport, which allows travelers to pay departure tax. 

[blueskyline]

You Rock .....

[pokerplayer]

3 hours ago, Freedomwish said:

Thanks PP......I did mentioned I was calling it a night with my weekend drinks.....but what's a FWIW category?  Cheers and thanks again! 

 

     FWIW =  For What It's Worth     

     pp

[screwball]

By Ebrahim Fallahi

Sanctions lift opens door to €10b of energy projects in Iran

1. Economy

January 29, 2017

 

TEHRAN – After the removal of sanctions against Iran, once again the country has become an attractive market for the world’s renowned energy companies so that more than €10 billion worth of energy projects has been proposed by foreign companies, Energy Minister Hamid Chitchian said on Sunday.

The minister made the remarks in a press conference which was held on the occasion of the Ten-Day Dawn (February 1-10, marking the victory anniversary of the Islamic Revolution) in Tehran.
China, Russia, South Korea, Japan, Turkey, Belgium, Denmark, Spain, Germany, the Netherlands and Britain are among the countries which have expressed willingness for contribution in Iran’s energy projects and some of them including Russia, China, Germany, South Korea and Belgium have signed deals with the country, Chitchian added. 
Energy Ministry hopes to attract over €2 billion of foreign investment for the country’s energy projects by the end of current Iranian calendar year (March 20, 2017), the official told the Tehran Times.

Inauguration of 5,314 energy projects during Ten-Day Dawn

According to the official some 5,314 energy-related projects worth €2.587 billion are scheduled to be launched or put into operation during the Ten-Day Dawn, of which 4,860 projects will be in electricity sector.
He also mentioned the electricity exports to Iraq saying, “We have been negotiating with Iraq for the resumption of electricity exports to the country but so far there has been no agreement and the exports are still halted.”

100MW capacity of renewable energy to go online by March 20

Elsewhere in his remarks Chitchian noted that 100 megawatts (MW) capacity of renewable energy will be added to the country’s electricity capacity by the end of current Iranian calendar year of which 48MW will go online during the Ten-Day dawn.
He went on saying that some 164MW capacity of Small-scale power plants will also be inaugurated in the mentioned time span.
The country has it on the agenda to add over 700MW capacity of renewable power plants to the country’s energy sector in the next fiscal year (starting from March 21).
Touching upon the guaranteed purchase of electricity generated through renewable energy, the minister said that to support the producers and private sector investors, the government has offered various programs including guaranteed power purchasing, holding tenders, and welcoming private sector investors in a variety of areas.
Further in his remarks the official assured investors and producers about financial support and noted that the Energy Ministry has no problem regarding the payments and finance related to the renewable contractors.
He also said that there will be no change in the power purchase prices at least not until the end of Iranian calendar year of 1396 (March 2018).

[screwball]

How do I say euro?

[pokerplayer]

1 hour ago, screwball said:

How do I say euro?

 

Your news keeps getting better and better !

pp

[markb57]

Iran is about to be shutdown:

 

Breaking News: Fox News learns exclusively Iran conducted ballistic missile launch Sunday in apparent violation of UN resolution barring the Islamic Republic from such tests.

[pokerplayer]

1 hour ago, markb57 said:

Iran is about to be shutdown:

 

Breaking News: Fox News learns exclusively Iran conducted ballistic missile launch Sunday in apparent violation of UN resolution barring the Islamic Republic from such tests.

Oh Oh, this is definitely not good unless permission was granted ahead of time.

pp

[markb57]

if true, iran has got to know they are being watched and a missile launch is an obvious violation. if iran wants to truly be successful, why would they do it?

[pokerplayer]

1 hour ago, markb57 said:

if true, iran has got to know they are being watched and a missile launch is an obvious violation. if iran wants to truly be successful, why would they do it?

I don't know but I suspect we will be finding out real quick !! I sure hope this is wrong because that would be yet another issue to deal with. 

pp

Edited January 30, 2017 by pokerplayer

[screwball]

Th y have been conducting military xercises for days now, many missile tests, there is no violation of nuclear agreement...Fox News report lies....propaganda for those wanting new sanctions against Iran.Trump did say in his second date Iran will be a powerhouse, or he suspects! 

[screwball]

News ID: 3892389 - Mon 30 January 2017 - 21:24

Politics

TEHRAN, Jan. 30 (MNA) – French Foreign Minister Jean-Marc Ayrault arrived in Tehran on Monday to attend the first Iran-France joint economic commission.

Ayrault is slated to visit his Iranian counterpart Zarif, President Hassan Rouhani, Parliament Speaker Ali Larijani and other high-ranking officials during his two-day visit.

“Foreign ministers of Iran and France will convene a joint economic and trade commission’s meeting on Tuesday,” Foreign Ministry Spokesman Ghasemi has said earlier.

Ayrault is accompanied by representatives from 60 French companies, directors of Middles East and African affairs at Foreign Ministry, managers of entrepreneurship and international economic institutions, officials in charge of Iranian affairs at Foreign Ministry, heads of Department of Treasury Office, and a number of governmental officials and media persons. 

 

PT/3892360

[screwball]

CBI: 70% of expectations from JCPOA realized

Seventy percent of expectations from the Joint Comprehensive Plan of Action in the banking field have been fulfilled, said the governor of the Central Bank of Iran (CBI).

Valiollah Seif made the remarks in a TV program on Sunday evening, IRNA reported.

“No one can ignore the outcomes of the JCPOA for the Iranian economy; 60 to 70 percent of expectations from the nuclear deal have been already materialized,” added Seif.

He said, “Ninety percent of operations needed in banking and foreign trade are now possible.”

A significant increase in oil production and exports, which resulted in a rise in the country’s foreign currency, is another outcome of JCPOA, Seif added.

He noted that all nuclear-related sanctions were lifted after the implementation of the JCPOA.

During the sanctions era, a part of banking operation was transferred to exchange offices, but the CBI is attempting to return them to the banking sector, the CBI governor added.

With regard to the foreign banks' concerns about the revival of relations with Iran, Seif said, “Certain foreign banks are concerned about a return of sanctions on Iran.”

International standards for banking are not followed in Iranian banks; this is another reason for foreign banks’ doubts in the revival of ties, Seif noted.

He underlined that after the removal of sanctions, the CBI was able to transfer its currency reserves to big European banks.

Presently, Iran’s currency reserves are better than at any other time, the official noted.

“Iran has transferred its currency reserves to various countries in order to prevent their blockade in any particular country.”

[screwball]

Conditions set reserves enter than before....

[screwball]

Iranian bank links with 118 foreign partners post-JCPOA

1. Economy

January 30, 2017

 

TEHRAN – With the west-imposed sanctions lifted, Export Development Bank of Iran has established broker relations with over 118 banks worldwide, IRIB reported on Monday quoting managing director of the bank.

According to Ali Saleh Abadi, after the implementation of Joint Comprehensive Plan of Action (JCPOA) the bank has already sent requests for commencing broker relations to 379 banks worldwide among which 118 banks have accepted the offer.

Italy, Spain, Germany, France, Belgium, Austria, Russia, Turkey, China, Japan, South Korea, India, Iraq and Oman are among the countries with which the bank linked.