Iranian Rial

[screwball]

So this is what I love..

The achievements of Iran's nuclear deal must not be undermined, as the cost of foreign trade for the country is declining among other things, the governor of the Central Bank of Iran said.

"Under the sanctions, the costs of doing trade [with other countries] had risen by at least 15%, which will reduce with the new openings," Valiollah Seif was also quoted as saying by the official news website of CBI. 

Seif added that the country's oil exports doubled in the wake of sanctions relief.

Iran’s crude production has returned to levels last seen before sanctions were imposed over its nuclear program, as the nation raised output to regain market share, the International Energy Agency said. 

Output reached 3.56 million barrels a day in April 2016, the highest since November 2011, and exports soared to 2 million barrels a day, just shy of the level before the trade restrictions. China was the biggest buyer of Iranian crude last month, taking more than 800,000 barrels a day. 

The nuclear accord, formally called the Joint Comprehensive Plan of Action, was reached by Iran, six world powers and European Union in July 2015, which was implemented on January 16, 2016.

Before JCPOA, Seif said Iran's correspondent banking relations were at a standstill, "but now correspondent relations with international banks are at a good level".

The official noted that as a result of the restrictions, money transactions had to be redirected toward the bureaux de change network, stressing that current circumstances have made it possible to return to the banking system that entails lower costs and risks.

"Although we witnessed a lack of commitment from the US with regard to JCPOA," he added, "the deal's achievements must not be ignored and underplayed."

Boon for Markets 

The CBI governor also considered the market stability as a direct result of the positive economic endeavors of the government, saying conditions are suitable for long-term decision-making by businesses, "which is what our economy needs".

The plan to support the ailing small- and medium-sized enterprises was once again mentioned by the central banker who said 21,000 units have so far received 150 trillion rials ($3.911 billion) from the country's lenders.

According to Seif, the financing of SMEs has "created momentum in industrial parks".

As previously announced by Seif and other officials, 160 trillion rials ($4.172 billion) have been earmarked by the end of the current fiscal year in March as part of the plan to support SMEs.

On the unification of foreign exchange rates, the official said the required conditions "will be established in the next few months and the central bank will take the necessary measures".

Seif had repeatedly promised from the beginning of the current year that the official and unofficial foreign currency rates in the Iranian market will be unified by the yearend, which seems unlikely at present. 

Iran operates two exchange rates for the US dollar—a free market rate that was around 38,350 rials on Wednesday and an official rate used for some state transactions, set by the central bank at around 32,379 rials. 

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

[screwball]

Just now, screwball said:

Before JCPOA, Seif said Iran's correspondent banking relations were at a standstill, "but now correspondent relations with international banks are at a good level".

The official noted that as a result of the restrictions, money transactions had to be redirected toward the bureaux de change network, stressing that current circumstances have made it possible to return to the banking system that entails lower costs and risks.

 

Just now, screwball said:

The CBI governor also considered the market stability as a direct result of the positive economic endeavors of the government, saying conditions are suitable for long-term decision-making by businesses, "which is what our economy needs".

 

Just now, screwball said:

On the unification of foreign exchange rates, the official said the required conditions "will be established in the next few months and the central bank will take the necessary measures".

Which one in the next few? 

1 minute ago, screwball said:

Seif had repeatedly promised from the beginning of the current year that the official and unofficial foreign currency rates in the Iranian market will be unified by the yearend, which seems unlikely at present. 

Or unlikely at present? Lol

[screwball]

2 minutes ago, screwball said:

The CBI governor also considered the market stability as a direct result of the positive economic endeavors of the government, saying conditions are suitable for long-term decision-making by businesses, "which is what our economy needs".

So market stable. Inflation at 8%, assets upwards of 70 billions, foreign exchange over 129 billion and conditions set! So why are you waiting?

[screwball]

 

part from a handful of countries with problems unrelated to previous nuclear sanctions, all Iran’s frozen assets have been freed, the government spokesman said.

“What was agreed upon to remove the blockade of Iranian assets has been delivered,” IRNA quoted Mohammad Baqer Nobakht as saying in response to a question about whether Iran’s nuclear accord and the lifting of western sanctions resulted in a complete unfreezing of Iranian funds.

“In the case of some countries, namely India, there are no excuses concerning the sanctions and they might be experiencing other delays regarding the matter [their oil debts],” he added.

Nobakht, who is also the head of Planning and Budget Organization, assured that the aforementioned inconveniences notwithstanding, “the blocked assets have been freed”. 

India owed $6.4 billion to Iran for crude oil imports. In late May 2016, Indian refiners cleared a part of their debts in euro with state refiner Mangalore Refinery and Petrochemicals Ltd., paying $500 million and Indian Oil Corporation settling $250 million through the Union Bank of India.

The Indian ambassador to Iran said on Wednesday there are no oil debts to be settled between the two countries.

“India does not owe anything to Iran and has paid its oil debts in full,” Saurabh Kumar said in a talk with ILNA.

“The important thing is that the volume of imported Iranian goods to India is more than Indian exports to Iran, therefore the trade balance is in favor of Iran and whatever the difference in dealings, India has paid it in full,” he added.

The Central Bank of Iran published a report in mid-January detailing the achievements of the country’s nuclear accord in the banking and monetary sectors, coinciding with the first anniversary of the accord’s implementation.

“After the deal was implemented, 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,” said the report.

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.

As part of the Geneva interim agreement, which was signed in November 2013 and its two subsequent extensions, a total of $11.2 billion of Iranian assets were freed and the amount reached $30 billion since the agreement’s implementation.

During the implementation of the nuclear deal, a further $1.4 billion and after its implementation, “at least $30 billion” were released.

CBI Governor Valiollah Seif has denied the presence of any obstacles for bringing the freed money to Iran, saying that the country prefers to keep those assets abroad. 

[screwball]

The parliamentary FATF taskforce will report on Iran's cooperation with the Financial Action Task Force to the Majlis Economic Commission by the end of the current Iranian year (March 20, 2017).

"Reviewing the sixth development plan caused a two-month delay for the FATF report, hence there will be a meeting next week to review the issue," Mohammad Reza Pour-Ebrahimi, the head of the commission, was quoted as saying by IBENA. 

"The report on FATF should be first reviewed and approved in the economic commission and then presented to Majlis Presiding Board," he said.

Pour-Ebrahimi concluded by saying that whether the report on FATF gets a hearing in an open Majlis session or not is up to the presiding board.

The intergovernmental FATF was founded in 1989 to combat money laundering, but its mandate expanded to act on terrorism financing in 2001. 

The group decided in late June to keep Iran on its list of high-risk countries but welcomed Iranian promises to improve, and called for a one-year suspension of restrictions on Tehran.

[screwball]

February 09, 2017

Iran-Russia Currency Deal on Hold 

 

Despite the Central Bank of Iran’s efforts to implement a bilateral currency swap agreement with Russia, the Central Bank of Russia has announced that it does not adhere to the process.

The Russian central bank only issues trade licenses and helps with supervision, according to the CEO of Export Development Bank of Iran.

“The CBI appointed Export Development Bank of Iran as the agent bank to implement the agreement, but the regulations set by the Central Bank of Russia have undermined it,” Ali Salehabadi was quoted as saying by Fars News Agency.

According to the agreement signed in September 2016, the commercial banks of Russia and Iran agreed to pay for bilateral supplies of products in their own national currencies. 

[screwball]

Private banks in Iran have started to embrace innovative technologies more than ever, striving to address major issues on their path toward modernization and profitability.

These measures gained traction after the Central Bank of Iran’s decision to authorize the operation of fintech firms. 

At the same time, recent cuts in interest rates are preventing lenders from using “unconventional” methods to attract more savings. People are also showing more interest in using e-banking services, which push lenders to make the best of the new opportunities.

Way2pay.ir, a well-known website covering e-banking and payment issues, recently surveyed 100 bankers and experts on the key challenges facing the Iranian banking system in the next fiscal year (starting March 21, 2017). 

The majority of experts believed that modern technology, social media and customer relations should be the banks’ priorities in the next year. 

And true to that spirit, several new services have been launched by lenders in recent weeks. 

 On With Innovation 

Parsian Bank unveiled seven services last week, including a personal finance management, a new customers’ club platform, a virtual branch platform and a new cloud-based payment service.

“We cannot expect [customers] to refer to bank branches in the future,” Ahmad Jafari, Parsian’s deputy for IT, said.

“Parsian Bank is fully prepared to upgrade its services based on the newest technologies. Our new services are capable of attracting a considerable number of other banks’ customers toward our services.”

Bank Hekmat Iranian also launched three modern branches offering the full range of financial services, including banking, insurance and currency exchange, in a fully digital environment. 

Bank employees are also present at the branches, offering consultation to customers regarding their financial and legal needs.

“Traditional banking is now history,” Abbas Askarzadeh, the bank’s CEO, said. 

Bank Mellat also unveiled a new user-friendly version of its mobile application. The lender also unveiled a check management service, allowing users to get the services 24/7. 

Mellat holds the largest share of Iran’s payment market, with Beh Pardakht Mellat offering near-field communication payment services.

Shahr Bank, owned by municipalities across the country, unveiled a new generation of virtual teller machines that are capable of offline identification of users. 

The bank’s customers can access all banking and payment services through VTM machines without contacting the bank staff.

Iran Zamin Bank has also come up with new measures to expand innovative services. 

Speaking at a conference in the University of Tehran, Farhad Inalouei, Iran Zamin’s deputy for IT, announced that his bank is ready to offer an open banking platform to innovators and knowledge-based companies.

“Innovators would be able to sell their services through bank branches or launch a partnership with the bank,” he added.

Ayandeh Bank unveiled Iran’s first open banking portal for application programming interface last month, allowing innovators and customers to put their ideas into practice. The lender has managed to increase its revenues after taking the lead in developing user-friendly digital banking services.

Saman Bank and Bank Pasargad Iran, both among leading banks in offering electronic services, are also enhancing ties with fintechs. 

Saman recently acquired Bahamta, an Iranian application for management of micro-payments, and launched promotional campaigns for the application that was blocked by authorities due to their opposition to fintechs.

BPI is organizing a fintech festival in March and has called on innovators to participate in a 54-hour startup event where they can get help from experts and bankers for developing and marketing their ideas. 

[screwball]

The value of Iran’s capital market grew by more than 160% to over $165 billion since Hassan Rouhani took office as Iran's president in August 2013, the chief executive of Securities and Exchange Organization said.

Speaking in a press conference on Tuesday, Shapour Mohammadi added that capitalization in fixed-income funds exceeds $31.2 billion of the overall market capitalization.

Furthermore, the number of equity traders rose 67% to 10.84 million in the Rouhani administration, IRNA reported.

Much of the growth owes to the nuclear deal Iran signed with world powers in 2015, which led to the removal of years of sanctions against the country early last year. The sanctions were lifted after Iran agreed to limit the scope of its nuclear works.

"The share of foreign investors in Iran's stock market stands at about $315 million," Mohammadi said.

According to chief executive of Central Securities Depository of Iran, Mohammad Reza Mohseni, the number of foreign entities investing in Iran's capital market has increased 42% since the removal of sanctions on January 16, 2016.

"Latest statistics show 264 foreign investors received trading codes over the past year, which shows a 42% rise compared with the corresponding period of the previous year," he said last month.

Germans constitute a considerable segment of foreign investors in Iran's securities market. Apart from Germany, investors from the United States, the United Kingdom, Spain, Russia, Switzerland, Sweden, Uzbekistan, China, the Netherlands, India, Turkey, Lebanon, South Africa, Japan, the UAE, Norway, Greece, Poland, Hong Kong, Iraq, Pakistan, Syria, Luxembourg, Kuwait, New Zealand, Malaysia and South Korea are trading in Iran’s equity market.

Foreign investment has also been on the rise, as it increased from $10.16 million to $338.98 million since 2013. 

Mohammadi described the 32-fold growth in FDI attraction as “impressive” and said there is still a great deal of untapped potential in Iran’s equity market for absorbing foreign capital.

According to chief executive of Iran's over-the-counter Fara Bourse exchange, Amir Hamouni, IFB has attracted 5 trillion rials (about $125 million) in foreign investment since Implementation Day–the day nuclear sanctions were rolled back.

Hamouni said half of the figure pertains to the exchange's debt market and the rest has gone to its stock market.

"Most of the investors have come from Germany, Persian Gulf littoral states and East Asia," he said.

Investment in Iran's equity market has been made easier. Foreigners, who choose to do business in the country, can now open bank accounts in Bank Mellat’s branches across the world and when they decide to buy securities, the bank will exchange their money to rials at open market rates within a day. The bank will apply the average daily exchange rate provided by the Association of Bureaux de Change Operators of Iran.

Subsequently, Mellat will wire the money to CSDI's account with the bank and buy the ordered securities. CSDI will then issue ownership certificates for the securities in the foreign investor's name, as it does with Iranian traders.

According to Mohseni, the foreign exchange risk will be borne by foreigners and the bank will only act as broker.

As one of Iran’s largest lenders, Mellat signed the FDI facilitation contract with the Central Securities Depository of Iran back in November 27.

[screwball]

Just now, screwball said:

Investment in Iran's equity market has been made easier. Foreigners, who choose to do business in the country, can now open bank accounts in Bank Mellat’s branches across the world and when they decide to buy securities, the bank will exchange their money to rials at open market rates within a day. The bank will apply the average daily exchange rate provided by the Association of Bureaux de Change Operators of Iran.

Interesting..

[tigergorzow]

7 minutes ago, screwball said:

Investment in Iran's equity market has been made easier. Foreigners, who choose to do business in the country, can now open bank accounts in Bank Mellat’s branches across the world and when they decide to buy securities, the bank will exchange their money to rials at open market rates within a day. The bank will apply the average daily exchange rate provided by the Association of Bureaux de Change Operators of Iran.

SB,  Totally agree....Very Very Interesting....

[pokerplayer]

1 hour ago, screwball said:

So market stable. Inflation at 8%, assets upwards of 70 billions, foreign exchange over 129 billion and conditions set! So why are you waiting?

I agree 100% on that one. Pull the trigger now before way to many buy in and it would cause you grief as in ( Iraq ) .

pp

[markb57]

YES!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

[screwball]

2 hours ago, pokerplayer said:

I agree 100% on that one. Pull the trigger now before way to many buy in and it would cause you grief as in ( Iraq ) .

pp

Let's not forget new accounting reporting needs to implemented by all banking institutions by march 21 and credit cards international after march and fuel subsidies cut after march 21

[screwball]

President up for reelection if he he announces he is running in may...he needs to get runs on the board! Keep promises...

[screwball]

Malaysia’s BIV to study two Iranian gas fields

1. Economy

February 8, 2017

 

TEHRAN – Malaysian BIV has entered Iran’s oil and gas industry by signing a memorandum of understanding with the National Iranian Oil Company for conducting development studies on two Iranian gas fields.

According to a report by Shana, the MOU was signed in Tehran on Wednesday by Gholamreza Manouchehri, the deputy managing director of NIOC for development and engineering affairs, and Shamsul Azhar Abbas, the chairman of the board of the Malaysian BIV.

Based on the agreement, the development studies of Ferdowsi and Golshan fields were awarded to the Malaysian company and BIV is supposed to complete its studies and hand the results to NIOC within seven months.

Ferdowsi and Golshan are both oil and gas fields and NIOC intends to cooperate with BIV on the gas sector and the main purpose would be to transfer gas to the shore and convert it to Liquefied Natural Gas (LNG), according to Manouchehri.

Before the imposition of EU oil embargo on Iran in 2012, Malaysia imported 50,000-60,000 barrels of crude oil on a daily basis from Iran.

EF/MA/MG

[screwball]

61,444 views....interesting

[blueskyline]

And growing . Thanks to You Screwball 

[screwball]

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News ID:177302

Publish Date: Wed, 08 Feb 2017 19:27:59 GMT

Service: Iran

 

 

Tehran urges Berlin, Stockholm to improve banking ties

Economic Desk

Iran urged Germany and the Netherlands to help remove the obstacles in the way of expansion of banking relations between Tehran and the European countries. 

Iranian Deputy Foreign Minister for European and American Affairs Majid Takht-Ravanchi visited the two European countries to discuss promotion of economic and political relations.

Despite the nuclear deal having officially gone into effect on January 16, many large European banks still refrain from engaging in transactions with Iran for the fear of US sanctions. 

In Germany, Takht-Ravanchi held talks with State Secretary of the Federal Foreign Office of Germany Markus Ederer.

Germany said it would support the process of transferring new technologies to Iran through private sector investment as relations between the two countries have been improving following the 2015 nuclear agreement.

German companies in diverse industrial fields are eager to invest in Iran on the basis of transferring new technologies, and the government backs such process, Ederer said.

The German diplomat also expressed his country’s readiness to promote cooperation with Iran in all areas, particularly the economic interaction.

The Iranian official, who visited Berlin upon an official invitation from his German counterpart to discuss issues of mutual interests, gave a speech at the Corber Foundation in Berlin.

He called for Europe's active cooperation for successful implementation of Iran nuclear agreement.

Iran and Germany have held regular talks after implementation of the nuclear agreement between Iran and the P5+1 group of countries –Russia, China, the US, Britain, France and Germany).

Germany is the fifth-largest exporter to Iran, after China, the United Arab Emirates, South Korea and Turkey.

In the first half of 2016, German exports to Iran increased by 15 percent.

In 2015, trade turnover between Germany and Iran was $2.8 billion.

The Iranian official also met Secretary General at the Ministry of Foreign Affairs of the Netherlands Johanna Yoka Brandt in The Hague. 

Iranian and Dutch officials discussed mutual relations between the two countries.

Brandt said her country supports full implementation of the Iran nuclear deal.

The Dutch official added that Stockholm is determined to improve relations with Tehran in different fields, including the environment, agriculture and new energy.

[screwball]

Iranian diplomat, Dutch FM discuss issues of mutual interest

Tehran, Feb 9, IRNA – Deputy Foreign Minister for European and American Affairs Majid Takht-Ravanchi who is currently in Amsterdam for political consultations conferred with Foreign Minister of the Netherlands Bart Konders on Wednesday.

 

During the meeting, Konders first expressed condolences over demise of Ayatollah Hashemi Rafsanjani, the late 
chairman of the Expediency Council. 

Welcoming expansion of bilateral ties, he maintained that his country is committed to the Joint Comprehensive Plan of Action and interested to boost relations with Iran.

Referring to areas of cooperation between the two countries, the Dutch foreign minister said that terrorism and refugees are among the fields that his country and Europe can have collaboration with Iran.

Takht-Ravanchi, for his part, said that Iran favors development of ties with Europe and believes that cooperation with it has the potential for promotion at the bilateral and regional levels.

He called for continued negotiations on regional developments including Yemen, Afghanistan, Syria and Iraq.

In addition to oil and gas sectors, Tehran-Amsterdam cooperation can be broadened in fields of renewable energies and economy, particularly agriculture, he said.

[screwball]

3 minutes ago, blueskyline said:

And growing . Thanks to You Screwball 

I just report news...we are all in it to win it...

[blueskyline]

You do an excellent job keeping us informed. What happens in Iran affects Iraq . It's all tied together 

[tigergorzow]

29 minutes ago, blueskyline said:

You do an excellent job keeping us informed. What happens in Iran affects Iraq . It's all tied together 

blueskyline, Yup 100% agree!!

55 minutes ago, screwball said:

I just report news...we are all in it to win it...

SB,  Top Notch....

[screwball]

5 hours ago, blueskyline said:

You do an excellent job keeping us informed. What happens in Iran affects Iraq . It's all tied together 

Yes I never did think that they were tied until trump made mention of Iran and Iraq in a Fox News interview...

[screwball]

5 hours ago, blueskyline said:

You do an excellent job keeping us informed. What happens in Iran affects Iraq . It's all tied together 

Thank you..

[screwball]

5 hours ago, tigergorzow said:

blueskyline, Yup 100% agree!!

SB,  Top Notch....

Thanks Tiger!