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On ‎6‎/‎22‎/‎2017 at 3:05 PM, Freedomwish said:

Ok, we're getting there! :twothumbs: I'll be having some more whiskey to help maintain my nerves and patience!! :cheesehead: 

Cheers Screwball!

Have a shot of Makers Mark. Bourbon is much better.

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EconomyBusiness And Markets
Saturday, June 24, 2017

Forex Rate Unification Needs Real Rates

 

The unification of foreign exchange rates should be accompanied by setting real exchange rates, otherwise the plan will fail as in the past, the head of Iran Export Confederation said.   

Mohammad Lahouti’s statement came after the Wednesday meeting of Money and Capital Markets Commission of Iran Chamber of Commerce, Industries, Mines and Agriculture, during which Gholamali Kamyab, the Central Bank of Iran’s deputy governor for foreign exchange affairs, voiced his support for unifying the forex rates.

“Everyone in the meeting talked about foreign exchange rate unification while no one mentioned the necessity of moving toward real forex rates,” Lahouti was quoted as saying by IRNA.

He added that exporters don’t favor higher exchange rates, but they demand the implementation of a law based on which the inflation rate determines the forex rates.

According to a report by the Institute for Trade Studies and Research (affiliated to the Ministry of Industries, Mining and Trade), the government has kept the exchange rate lower than its real value by 38% and 11% in 2013 and 2016, respectively.

Lahouti said the rule for taking into account  the ratio of the price level abroad and the domestic price level for determining the exchange rate has existed since the third five-year development plan(2000-4), but previous administrations never implemented it.

“If the forex rates do not increase in tandem with inflation, that would hurt domestic production since it ruins their competitive edge, as a result of which imports and smuggling will significantly increase,” he said.

The ITSR report indicates that in the last Iranian year (ended March 20, 2017), the value of commodities smuggled into Iran hit $15 billion, which is equivalent to 22% of all imports (both legal and smuggled).

Lahouti emphasized that the important issue is to support exports without increasing the forex rates since it would not help exports, as a commensurate increase in inflation and forex rates will ensure the continuation of exports.

Domestic production in Iran is highly subsidized by the state. However, overshadowing the country’s protectionist policies is the practice of allocating cheap, subsidized foreign exchange by the government to imports, which runs counter to the spirit of boosting domestic industries.

Iran currently uses two exchange rates: the free market rate, which stood at 37,440 rials to the US dollar on Friday, and an official exchange rate for state transactions fixed by CBI at 32,491 rials on Thursday.

In order to bridge the gap between the two rates, the government began to gradually increase the official exchange rate for it to get closer to the unofficial market rate and tried to shorten the list of imports eligible to receive foreign currency at official rates.

Top economic officials, including CBI Governor Valiollah Seif and Economy Minister Ali Tayyebnia, had repeatedly promised that the forex rate will be unified soon after all the prerequisites are in place.

 Lacking Banking Ties With Qatar

Lahouti noted that despite the statements of CBI’s deputy governor for foreign exchange affairs at the Wednesday meeting, Iran’s banking relations are not the same as they were before the nuclear sanctions and exporters still use high-risk runaround methods to transfer their money because it is not available through the banking system.

“European banks do not accept Iranian commodities’ certificates and most of Iran’s trade is with Iraq, Afghanistan and the UAE where the only correspondents are Iranian banks since foreign banks don’t work with Iranian exporters,” he added.

Since the removal of international banking restrictions in January 2016, Tehran has secured links with only a limited number of smaller banks as US sanctions remain in force and large foreign institutions still fear potential fines.

Lahouti said Iran cannot get hold of Qatar’s market due to its lack of banking ties with Iran.

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Iran, Germany to broaden banking cooperation

Tehran, June 26, IRNA – Foreign Minister Mohammad-Javad Zarif and German Finance Minister Wolfgang Schäuble on Monday discussed expansion of Tehran-Berlin banking cooperation.

 
82578454-71704600.jpg

The two ministers met on the sidelines of the annual meeting of European Council on Foreign Relations (ECFR).

Schäuble, underlining the JCPOA implementation, welcomed banking cooperation between Tehran and Berlin.

He said German banks are ready to upgrade cooperation with Iran.
Zarif arrived in Berlin on Monday morning.

He is to meet President of Germany Frank-Walter Steinmeier and Foreign Minister Sigmar Gabriel later.

1420

 

not as ready as us..

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On 09/08/2016 at 6:14 PM, screwball said:
 
  1.  

     

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Businesses and private sector representatives expect the Central Bank of Iran to speed up the process of unifying forex rates since the gap between free market and official exchange rates promotes rent-seeking and hurts exports.

Seyyed Hossein Salimi, a member of Iran Chamber of Commerce, Industries, Mines and Agriculture, said a single exchange rate helps attract foreign investments that could lead Iran’s economy toward prosperity, therefore it should be pursued by policymakers.

“Exporters are not able to ship their goods as a result of the difference between domestic and foreign prices,” Salimi was also quoted as saying by ICCIMA’s official website.

Domestic production in Iran is highly subsidized by the state. However, overshadowing the country’s protectionist policies is the practice of allocating cheap, subsidized foreign exchange by the government to imports, which runs counter to the spirit of boosting domestic industries.

Salimi, who is also the deputy chairman of Money and Capital Market Commission with the Tehran Chamber of Commerce, added that Iran’s banking system has been isolated for years due to nuclear sanctions.

“The implementation of international standards such as complying with International Financial Reporting System and capital adequacy ratio is not easy and will take a few years,” he said.

“It is wrong to think if the forex rates are unified tomorrow, all the problems would go away since the structure of business regulations is in need of reforms.”

Ferial Mostofi, the head of Investment Commission at ICCIMA, said it is important for foreign investors to know that if they invest in Iran, at what rate they would be able to exchange their money if they want to move it out of the country.

“It is predicted in the sixth five-year development plan (2017-22) to absorb $50 billion worth of foreign investment but it remains to be seen whether it is possible without forex rate unification,” she added.

Iran currently uses two exchange rates: the free market rate, which stood at 37,680 rials to the US dollar, and an official exchange rate for state transactions fixed by CBI at 32,489 rials on Thursday.

Mohammad Lahouti, the head of Iran Export Confederation, believes that the unification of foreign exchange rates should be accompanied by setting real exchange rates, otherwise the plan will fail as in the past.

“If the forex rates do not increase in tandem with inflation, that would hurt domestic production since it ruins their competitive edge, as a result of which imports and smuggling will increase significantly,” he said.

In order to bridge the gap between the two rates, the government began to gradually increase the official exchange rate for it to get closer to the unofficial market rate and tried to shorten the list of imports eligible to receive foreign currency at official rates.

Top economic officials, including CBI Governor Valiollah Seif and Economy Minister Ali Tayyebnia, had repeatedly promised that the forex rate will be unified soon after all the prerequisites are in place.

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Businesses and private sector representatives expect the Central Bank of Iran to speed up the process of unifying forex rates since the gap between free market and official exchange rates promotes rent-seeking and hurts exports.

Seyyed Hossein Salimi, a member of Iran Chamber of Commerce, Industries, Mines and Agriculture, said a single exchange rate helps attract foreign investments that could lead Iran’s economy toward prosperity, therefore it should be pursued by policymakers.

“Exporters are not able to ship their goods as a result of the difference between domestic and foreign prices,” Salimi was also quoted as saying by ICCIMA’s official website.

Domestic production in Iran is highly subsidized by the state. However, overshadowing the country’s protectionist policies is the practice of allocating cheap, subsidized foreign exchange by the government to imports, which runs counter to the spirit of boosting domestic industries.

Salimi, who is also the deputy chairman of Money and Capital Market Commission with the Tehran Chamber of Commerce, added that Iran’s banking system has been isolated for years due to nuclear sanctions.

“The implementation of international standards such as complying with International Financial Reporting System and capital adequacy ratio is not easy and will take a few years,” he said.

“It is wrong to think if the forex rates are unified tomorrow, all the problems would go away since the structure of business regulations is in need of reforms.”

Ferial Mostofi, the head of Investment Commission at ICCIMA, said it is important for foreign investors to know that if they invest in Iran, at what rate they would be able to exchange their money if they want to move it out of the country.

“It is predicted in the sixth five-year development plan (2017-22) to absorb $50 billion worth of foreign investment but it remains to be seen whether it is possible without forex rate unification,” she added.

Iran currently uses two exchange rates: the free market rate, which stood at 37,680 rials to the US dollar, and an official exchange rate for state transactions fixed by CBI at 32,489 rials on Thursday.

Mohammad Lahouti, the head of Iran Export Confederation, believes that the unification of foreign exchange rates should be accompanied by setting real exchange rates, otherwise the plan will fail as in the past.

“If the forex rates do not increase in tandem with inflation, that would hurt domestic production since it ruins their competitive edge, as a result of which imports and smuggling will increase significantly,” he said.

In order to bridge the gap between the two rates, the government began to gradually increase the official exchange rate for it to get closer to the unofficial market rate and tried to shorten the list of imports eligible to receive foreign currency at official rates.

Top economic officials, including CBI Governor Valiollah Seif and Economy Minister Ali Tayyebnia, had repeatedly promised that the forex rate will be unified soon after all the prerequisites are in place.

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Iran's central unifying currency exchange rate soon


03/07/2017


Crown God, Saif Governor of the Central Bank of Iran announced its readiness to inform the unification of the exchange rate of the riyal against foreign exchange instructions to apply it as soon as possible.

Saif explained that the requirements of the unification of the exchange rate to find a financial intermediary links in the international banking system and that the Bank will do when those instructions provide the appropriate conditions.

He added: Although the deal in the Iranian rial against foreign currency exchange are currently Bsaran (official and free market), but the official price dedicated to specific resources and is subject to control.

He pointed out that Saif will activate the unification of the currency exchange rate policy of the nearest possible opportunity and it is hoped that the application to March 20 / March 2018.

The exchange rate on Monday: US dollar = 32 519 riyals and the price of the free market: dollar = about 37,500 riyals.

http://aletejahtv.org/permalink/171118.html

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Iran: Financial exchanges with international banks through the Bank "Post Bank" is now available


03/07/2017 


The Minister of Communications and Information Technology Mahmoud preachers, the financial exchange with international banks through the Bank of Iran's Post Bank services become available after the entry into force of the nuclear deal.

He explained preachers at the 12th session of the Conference of Asia Post and Oceania in Tehran on Monday, that the financial deal through the postal service that hung on her way to resolve and that the President of the Universal Postal Union and the Secretary General of the Federation of Asia Post and Oceania, an undertaking comprehensive cooperation with Iran in this field.

http://aletejahtv.org/permalink/171119.html

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The administration of President Hassan Rouhani will implement the longstanding policy of unifying Iran’s dual foreign exchange regime “at the first possible opportunity”, which will likely be during the current fiscal year ending March 2018, announced the governor of the Central Bank of Iran.”Rate unification is something that can be implemented easily and even its directives are ready to be notified,” Valiollah Seif was also quoted as saying by IBENA. However, he added that one of the main prerequisite of doing so will be for Iranian banks to be able to establish widespread correspondent banking relations with their international counterparts and only then will the central bank roll out the plan.

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Just now, screwball said:

Rate unification is something that can be implemented easily and even its directives are ready to be notified,”

 

This says to me they are ready to go..

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2 minutes ago, screwball said:

at the first possible opportunity”

 

2 minutes ago, screwball said:

during the current fiscal year

 

2 minutes ago, screwball said:

ready to be notified,

 

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2 minutes ago, screwball said:

 

This says to me they are ready to go..

 

Great to see some positive movement. Thanks Screwball

 

pp

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2 minutes ago, gixxerfrog said:

I guess it's a start  (unification)  wonder how long after they will RV 

 

They can go when ever they choose, but timing with iraq  has been interesting...

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I think they will go same time as Iraq if not just before or just after..they don't want the fanfare and will do it quietly this they have stated.. 24th July could be key major signing of oil and gas contracts worth billions 

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If you remember they are connected to travellex outlets 1400 as well as major banks which are there trading partners so as per above they are ready..

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On 12/04/2017 at 7:13 PM, screwball said:

You can find us in 1,400 Bureau de Change outlets principally located in airports and tourist locations in over 100 airports, across 26 countries. Find your nearest Australia store below. Alternatively browse our stores ...

 

this is travellex....we need to watch travellex like a hawk

 

Reminder for all

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