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n the first quarter of the current Iranian year (started March 21), the total amount of three state-owned commercial banks' arrears to the Central Bank of Iran stood at 85.3 trillion rials ($2.2 billion), which indicate a drop of 55.5% compared with the corresponding period of last year.

According to CBI's latest report on Iran's economic indicators, the figure had surged by 54.2% during the same period of last year. Back then, the volume of debts exceeded 191 trillion rials ($5 billion).

Financial Tribune's survey showed that the revaluation of banks' assets and its subtraction from their debts to CBI was the major reason behind the decline in commercial banks' debts.

This is while during the same period, the government's debts to commercial banks went up by 30.7% year-on-year. The figure reached 432.1 trillion rials ($11.3 billion).

Private sector's arrears to commercial banks also went up by 20.7% to reach 1.43 quadrillion rials ($37.6 billion) by the end of the first quarter.

However, the amount of private sector's deposits in commercial banks reached 2.5 quadrillion rials ($65.7 billion) to experience a notable annual surge of 40.3%.    

Private Banks' Debts Triple

The report indicates that CBI's claims on private banks and credit institutions by the end of Q1 reached 421.8 trillion rials ($11.1 billion), marking a soaring rise of 309.2% in one year.

Private banks and credit institutions' arrears to CBI stood at 136 trillion rials ($3.57 billion) YOY.

Banking experts told Financial Tribune that the credit lines allocated by CBI to manage the crisis of unauthorized credit institutions were the main reason for the surge in debts.  

As cited in the report, the arrears of the government and private sector to private banks and credit institutions stood at 5.7 quadrillion rials ($150 billion) and 720 trillion rials ($19 billion) respectively. The former marked an increase of 27.1% while the latter went up by 36.4% YOY.

The private sector's deposits in credit institutions and private banks by the end of Q1 exceeded 9 quadrillion rials ($236.8 billion), showing a rise of 21% compared with the corresponding figure of last year.

Specialized Banks Curb Debts

The six state-run specialized banks also managed to curb their arrears to CBI by the end of Q1. The amount of their debts stood at 506.6 trillion rials ($13.3 billion), registering a 10.7% drop YOY.

CBI's report indicates that specialized banks managed to reduce their arrears while their dues from both the government and private sector increased.

By the end of the first 90 days of the new Iranian year to June 21, the government's arrears to specialized banks stood at 490 trillion rials ($12.9 billion) to mark an annual raise of 15.2% while the amount of private sector's debts exceeded 2 quadrillion rials ($52.6 billion), up by 12.4%, YOY.

This is while private sector's deposits in specialized banks reached 1.3 quadrillion rials ($34.2 billion), registering a year-on-year increase of 23.1%.

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BACKDOC:  Article:  Saudi Arabia pulls rug from under Iran's feet in Iraq

DUE TO IRANS CONTINUED BAD BEHAVIOR THEY WILL NOW BE MARGINALIZED IN THE NEW REALITY!  LOOKS LIKE THEY BLEW THEIR CHANCE TO COME OUT AND BE A RESPONSIBLE PLAYER!  THEY ARE BEING BONEHEADED!  BACK TO THE BASEMENT FOR THEM!  

  DOC    IMO

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yep, but allot of European companies have invested millions in Iran since the agreement was signed in 2016. Irans bad boy in the neighborhood attitude will cost them all that and maybe war too. Thank goodness I didnt invest too much to lose. I thought they would be a sure win.....oh well.

They're just hell bent to get nuked.

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13 minutes ago, millionaire in training said:

I can't believe they would blow it all away at this point. They've accomplished so much to let this ruin them. All the contracts that they've signed with so many countries.......what happens to all that?

 

Hey, it could be all smoke and mirrors but we'll just have to continue to wait and see.....I'm not drinking any whiskey tonight....-_-

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2 hours ago, markb57 said:

yep, but allot of European companies have invested millions in Iran since the agreement was signed in 2016. Irans bad boy in the neighborhood attitude will cost them all that and maybe war too. Thank goodness I didnt invest too much to lose. I thought they would be a sure win.....oh well.

They're just hell bent to get nuked.

 

Maybe, but dollars speak loudly in cases like this. They know if they blow this its back to the dark ages for them as no country will be willing to take a chance ever again.

 

Personally I think we are still good. We will see some back peddling or better explanations in the days ahead, were still good here.

 

No issues as far as I am concerned.

 

pp

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Majlis Research Center, the investigative and analytical arm of the parliament, has published the results of a yearlong survey covering the views of top banking officials and pundits about a major parliamentary motion to implement banking reforms.

To reform the beleaguered banking sector, the administration of President Hassan Rouhani has drafted the Banking Reform Bill and the Central Bank Bill through the Ministry of Economic Affairs and Finance and the Central Bank of Iran respectively.

However, as the bills have undergone many revisions and are yet to find their way to the parliament, lawmakers devised their own reform plan with the intent of finding a middle road to overhaul the country’s financial sector after nearly three decades, MRC’s website reported.

The parliament’s vision was published a year ago and soon after, the research center asked the CEOs of all banks and institutions, along with many high-ranking officials, university professors and pundits, to give their views about the plan.

The findings of the research center indicate that responders welcomed the fact that the blueprint aims to review and reform current regulations and pays due attention to corporate governance, supervision, financial reporting standards, bankruptcy rules and international procedures regarding bankruptcy.

Responders referred to electronic banking development as positive, expressed satisfaction with the number of articles included in the plan, commended the plan’s endeavor to address various dimensions of the banking system and lauded it for including the elements of Central Bank Bill and Banking Reform Bill.

 Drawbacks

However, as MRC reports, responders stated that the plan “does not adequately address the informal money market that requires special attention” because of the direct impact of regulating that sector on the improvement of financial market and business environment.

The research center identified the lack of an exact timeline based on which a number of proposed changes are to be implemented as another drawback of the plan. If “a logical transition period” is not signified, it could entail potential shocks for lenders and subsequently the production sector, in light of the fact that banks are currently responsible for 90% of the production sector’s financing.

Responders also noted that the plan’s approach toward the interbank market, management of state-owned banks and the way banks are connected to other financial institutions in the capital and insurance markets fails to impress.

Experts pointed out that the plan advocates the formation of a specialized supervisory entity while keeping in place the Money and Credit Council. This could interfere with the mandates of the new supervisory entity and MCC.

As MRC notes, the report is aimed at “reflecting the views of banks, credit institutions, affiliated entities and experts” and does not necessarily represent the views held by the research center, which will publish its own take at a later date after collating all the data.

At the beginning of the current Iranian month on July 23, the Cabinet approved the final draft of the twin bills devised by the administration, but they have not apparently been sent to the parliament yet. According to Mohammad Hashem Botshekan, CEO of Bank Maskan, who wrote in Financial Tribune’s sister publication Donya-e-Eqtesad, about 85% of all the articles of the reform bills deal with supervisory and disciplinary measures, Deposit Guarantee Fund and bankruptcy of banks.

According to Botshekan, the reinforced disciplinary approach is a result of the “shadow cast by [the struggle for organizing] illegal credit institutions during the past year” whose activities had created many problems for the banking system and whose imminent demise was officially announced by the central bank last week.  

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6 hours ago, pokerplayer said:

 

Maybe, but dollars speak loudly in cases like this. They know if they blow this its back to the dark ages for them as no country will be willing to take a chance ever again.

 

Personally I think we are still good. We will see some back peddling or better explanations in the days ahead, were still good here.

 

No issues as far as I am concerned.

 

pp

 

No issue as far as I am concerned...sanctions are exactly what they want.hre comes the euro! 

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9 hours ago, millionaire in training said:


BACKDOC:  Article:  Saudi Arabia pulls rug from under Iran's feet in Iraq

DUE TO IRANS CONTINUED BAD BEHAVIOR THEY WILL NOW BE MARGINALIZED IN THE NEW REALITY!  LOOKS LIKE THEY BLEW THEIR CHANCE TO COME OUT AND BE A RESPONSIBLE PLAYER!  THEY ARE BEING BONEHEADED!  BACK TO THE BASEMENT FOR THEM!  

  DOC    IMO

You better sell sell sell....can't stand the fire get out of the kitchen.

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16 hours ago, pokerplayer said:

 

Maybe, but dollars speak loudly in cases like this. They know if they blow this its back to the dark ages for them as no country will be willing to take a chance ever again.

 

Personally I think we are still good. We will see some back peddling or better explanations in the days ahead, were still good here.

 

No issues as far as I am concerned.

 

pp

 

PP, that's practically exactly the way I see it.  With so much that has been worked on and put on the table, if they screw this up - it'll be a final wrap for them and no one would probably bother again.  Big time companies outside the crazy sanctions placed have already vested heavily - billions worth - those companies are not planning to mess that up.  We'll continue to see how this will play out.  

I've invested in this just as much as I would had as if I was in Las Vegas or Atlantic City LOL - all in or nothing!  :cigar:

 

Of course, always hoping for something!  :praying: Thanks!:cheesehead:

Edited by Freedomwish
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Here we go again....let's see what happens considering the majlis has previously approved four zeros and not one..

 

Following an approval by the Cabinet and a presidential endorsement, the twin bills devised by the government to reform the banking system after almost 45 years have now been sent to the parliament.

President Hassan Rouhani officially delivered the Banking Reform Bill and the Central Bank Bill to Majlis Speaker Ali Larijani on Tuesday, Dolat.ir, the official news outlet of the administration, reported.

The bills have had a rocky journey on their way to the parliament and underwent many reviews and revisions before finally been approved by the Cabinet on July 23. The repeated delays had angered many lawmakers who threatened to ratify their own version of the reform agenda if the government continued its foot-dragging.

"More than four decades have passed since the first monetary and banking law of the country was approved and implemented in 1972. Since that time, the banking system has undergone many significant changes in all aspects and has assumed many key responsibilities," reads the brief preface sent to the parliament.

Under the circumstances, adds the statement, the current law which is not in keeping with the conditions and requirements of its time, cannot comprehensively address the current needs and that is why the new reform plan has been devised.

The Banking Reform Bill is the new blueprint expected to replace the current Usury-Free Banking Law. The last amendments to the Usury-Free Banking Law were made in 1983 while the law itself specifies that upgrades are needed every five years.

Problems facing the beleaguered banking system and the need for preparing lenders to overcome the post-sanctions challenges have prompted the government to prepare its own reform scheme after the previous parliament nearly passed a controversial bill criticized by the government and bankers.

Wide-Ranging Changes

The Banking Reform Bill outlines the procedures for banks and non-bank credit institutions to follow for obtaining a license from CBI. It explains all banking operations and services, notifies regulations for the establishment of foreign bank branches and sets limits on their investments.

Other articles put in place a professional set of criteria for appointing new top executives and board members, and makes provision for setting up internal risk and auditing committees while detailing lending and capital adequacy rules.

On the other hand, the Central Bank Bill, whose law was first passed in 1972, aims to update banking regulations. Improving the independence of CBI, enhancing monetary policymaking and enforcing CBI’s supervision over the money market are among its key goals.

Owing to the deleterious operations of illegal credit institutions whose imminent departure was announced by the central bank last week, the bill puts added emphasis on supervision and obliges credit institutions to "cooperate with CBI supervisors and investigators and provide them with all the relevant information within the framework of regulations".

It stresses that "CBI's oversight over credit institutions is comprehensive" meaning that in addition to evaluating the operational risks of the institution, it has the mandate to evaluate the risk emanating from the parent company that owns the credit institution.

The reform measures also include articles on bankruptcy and merger of banks and credit institutions, as CBI Governor Valiollah Seif had previously signaled that takeovers might begin in the foreseeable future.

The goal of these reforms is to "ensure the stability, health and sustainability of the monetary and banking regime and safeguard the interests of depositors".

In line with this, the bills also allow the Deposit Guarantee Fund, which guarantees people's deposits up to a ceiling, to continue with its operations and obligate "all credit institutions" to become a member and make a contribution.

Currency Change

Among all the articles in the twin bills, perhaps the measure that attracted most headlines when it was first passed by the Cabinet was the introduction of toman as the new official currency unit of Iran in place of rial.  

"With the aim of enforcing utmost conformity of legal frameworks with the realities of the society, the currency unit of the country has been changed to toman from rial, which now only acts in an accounting and bureaucratic capacity and has no practical use in the society," the administration said in its briefing while justifying the currency change.

"Iran's currency unit is toman. Each toman equals 10 rials," it adds.

The Cabinet first approved the change in early December of last year, but it has to be approved by the parliament and ratified by the Guardians Council to become law.

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And again...

 

Rate Unification Tops New CBI Deputy’s To-Do List 

 

Following last week’s appointment of Seyyed Ahmad Araqchi as the head of Foreign Exchange Department at the Central Bank of Iran, the new deputy is expected to oversee the long overdue task of unifying the dual foreign exchange rates–a promise central to the mission of Valiollah Seif, the CBI governor.  

Araqchi, who must first narrow the gap between the official and parallel market rates, has replaced Gholamali Kamyab who is now CBI’s deputy for international affairs.

According to the news website of the Iran Chamber of Commerce, Industries, Mines and Agriculture, CBI hopes to give fresh momentum to floating the rial with this appointment.  

Araqchi had served as a board member and senior executive deputy at the Securities and Exchange Organization of Iran.

Iran currently uses two exchange rates: a free market rate that stood at 38,130 rials to the US dollar on Monday and an official exchange rate for state transactions. CBI fixed the official rate at 32,859 rials on Monday.

The government began to gradually increase the official exchange rate for it to approach the unofficial market rate and reduce the list of imports eligible to receive foreign currency at official rates.

A few days ago, Seif expressed CBI’s desire to unify the foreign exchange rate during a TV program.

“Forex unification is an easy job and the relevant directive is ready for notification,” he said.

In a separate remark, Masoud Khansari, the head of Tehran Chamber of Commerce, Industries, Mines and Agriculture, also said on Sunday rate unification is “one of the necessary schemes” that the government must execute during its second term that began this month.

The idea of forex rate unification has been floated for a numbers of years, but has yet to become a reality.

Seif and former economy minister, Ali Tayyebnia, along with other major economic officials, had repeatedly promised that the forex rate would be unified by the end of last fiscal year (March 20, 2017) but that did not materialize due to weak banking relations with the world.

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Joining World Trade Organization is no longer a priority for the country—marking a change in approach since the signing of the nuclear deal between Tehran and world powers in July 2015—amid US President Donald Trump’s hostile Iran policy.

“Our priority is now to increase cooperation with neighboring countries and those in the region, which offer the most benefits to us,” Mojtaba Khosrotaj, the head of Trade Promotion Organization of Iran, said on Wednesday.

Not being a WTO member, Iran has been banking on free or preferential trade agreements with the countries it has strong economic trade ties with. A PTA with Turkey was implemented early 2015 and similar deals are expected to be signed with Eurasian Economic Union states, among others.

The government has earlier said those deals are aimed at facilitating WTO membership by gradually doing away with trade tariffs, as political conditions become suitable for Iran’s accession amid tangible progress after more than two decades of Tehran submitting its bid for the first time in 1996.

Iran became an observer member to the world organization in 2005, but WTO failed to assign a group chairman to discuss Iran’s foreign trade regime, due to the opposition of the US that has not been on good terms with Iran since 1979.

When Tehran signed the landmark nuclear deal with six world powers in July 2015—officially known as the Joint Comprehensive Plan of Action—to resolve a longstanding dispute over its nuclear program, leaders in Tehran and Europe said time was finally ripe for WTO to reach consensus on Iran’s membership.

In a gathering of ministers of WTO’s 162 members at a biennial meeting in Nairobi late 2015, Iran’s Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh said Iran is prepared to negotiate its way into the World Trade Organization.

“Now that years of intensive negotiations have finally cleared all the misunderstandings around Iran’s nuclear activities, we are taking the next step toward integrating more deeply into the global economy,” he said.

“Finalizing WTO membership is, therefore, a priority for the Iranian government. As the largest non-member economy in the world, our full membership will be win-win for all and a significant step toward creating a truly universal organization.”

Among the long list of world leaders who led large trade delegations to Iran after the nuclear deal are those who supported Iran’s willingness to join the global trade entity.

In February 2016, Swiss President Johann Schneider-Ammann made a rare visit to Iran and met with his Iranian counterpart. He said Bern expects Iran to provide legal security for international businesses, respect intellectual property, avoid unnecessary paperwork and facilitate visa process to strengthen its ties with the European country and, in return, Switzerland will help Iran obtain the full membership of WTO.

 “Trump Effect”

“Nothing has changed,” a top TPO official told Financial Tribune, on condition of anonymity. “Had there been any progress in WTO regarding our membership, we would have received the updates by now.”

The official is directly involved in the process of Iran’s WTO accession.

“It is the Trump effect,” he said, and the “uncertainty” it has created among other countries regarding Iran’s economic engagement with the global community.

Despite the lifting of sanctions in January last year as part of the JCPOA, Iran’s economic engagement with the world has been quite challenging amid Washington’s anti-Iran policy.

Although Trump has so far acknowledged Iran’s compliance with the nuclear deal, he has vowed to find a way not to do so in the future, raising concerns that the deal might not survive as we know it.

Despite disagreements on Russia, Trump and the US congress have been on the same page about increasing pressure on Iran. The congress lately passed a legislation to place new sanctions on Iran. And Trump signed the legislation into law.

US lawmakers’ opposition to Iran’s WTO accession was known even before Trump took office.

In October 2016, a bipartisan group in the US House of Representatives called on US Trade Representative Michael Froman to resist Iran’s efforts to join the international group over concerns the membership could tie their hands for imposing sanctions.

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24 minutes ago, screwball said:

Following an approval by the Cabinet and a presidential endorsement, the twin bills devised by the government to reform the banking system after almost 45 years have now been sent to the parliament.

President Hassan Rouhani officially delivered the Banking Reform Bill and the Central Bank Bill to Majlis Speaker Ali Larijani on Tuesday, Dolat.ir, the official news outlet of the administration, reported.

The bills have had a rocky journey on their way to the parliament and underwent many reviews and revisions before finally been approved by the Cabinet on July 23. The repeated delays had angered many lawmakers who threatened to ratify their own version of the reform agenda if the government continued its foot-dragging.

 

Isnt this interesting....cabinet approved in July....but cabinet also put Plan forward and approved 10:1 and rename in December? Which is it Julys plan or decembers plan?

Edited by screwball

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September and October going to be interesting months....for what's it is worth October 22nd this was back in 2016 was a date touted for them to unify rates and go on the forex this was reference in early posts but no news articles as my real,early posts were deleted. 

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On 09/08/2016 at 6:44 PM, screwball said:
 
  1.  

     

    Buy Iranian Rial‎

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On 16/08/2016 at 1:46 PM, millionaire in training said:

Ok just heard out in dinar land that Iran has announced that they are starting a float on Oct 22nd. Has anyone heard of this as well or have seen any articles that claim this to be true? I don't have a link.

Word has it that it is now putting pressure on Iraq to hurry up and do something (RV) before that date. Or else there will be a currency struggle on their boarder.

Screwball .....have you heard about any of this ? Especially the Oct 22nd date?  Things are starting to heat up.  :mad:

 

Theres that date?

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On 26/08/2016 at 9:30 AM, screwball said:

Here's a link to paid content but this is what I was referring too

May 3, 2016 - Iran plans to introduce a single exchange rate for foreign currencies as of late September, following ...

 

Month? 

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On 02/09/2016 at 5:37 PM, screwball said:
May 3, 2016 - Iran plans to introduce a single exchange rate for foreign currencies as of late September, following years of maintaining a multi-tiered currency ... No FLNG deals for Iran, but LNG talks move forward.
 
and this is what we wait for! 

 

and this....oldmbut relevant goes to,timeframe..

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The unification of foreign exchange rates and establishment of an interbank forex market are prerequisites set by the Central Bank of Iran for launching a foreign currency futures market, according to the head of Iran Mercantile Exchange.

Edited by screwball
Page 28-30 or there abouts

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Aconference on Iran’s post-sanctions economy is scheduled be held at the Geneva Chamber of Commerce, Industry and Services on September 28, concurrent with an Iranian economic delegation’s visit to Switzerland, Tehran Chamber of Commerce, Industries, Mines and Agriculture announced on Tuesday.  

The conference titled “Iran, 20 Months after the Lifting of International Sanctions: Overview and Challenges”, will review Iran’s international economic relations since the lifting of nuclear sanctions in January 2016 and explore ways of overcoming the remaining challenges.

According to TCCIM’s International Affairs Desk, the conference will see international lawyers discuss a wide range of issues, including the regulations set by the US Office of Foreign Assets Control and practical solutions for Iran to steer clear of the US sanctions.

The Iranian and Swiss officials will also exchange views on Iran’s market prospects, investment opportunities and the current status of financial systems’ reforms.

The conference will facilitate direct interactions and negotiations between Iranian and Swiss delegates in three specialized panels, namely “trade and freight transport”, “health services and medical technologies” and “financial risks, insurance and reinsurance”.

Last month, TCCIM announced a visit scheduled to Switzerland from September 27 to 30, led by chairman of the chamber, Masoud Khansari, at the head of a delegation of Iranian economic players.

The Iranian delegation will comprise Iranian businesspeople active in the fields of textile, industrial machinery and equipment, oil and gas, power plants and renewable energies, electricity and electronics, food production, pharmaceuticals, medical equipment, finance and banking.

The conference follows the line of another similar event titled “Iran After the Sanctions: Issues and Opportunities,” also held at the Geneva Chamber of Commerce in March 2016, soon after the sanctions were lifted as part of the nuclear accord signed between Iran and world powers in July 2015.

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