Iranian Rial

[screwball]

News ID: 199520

Published: 0219 GMT August 28, 2017

 

 

Iran planning to lure $100b in oil industry investment

By Farhad Daneshvar

President Hassan Rouhani in an addressing to the parliament on August 20, said that drawing $100 billion in foreign investment to develop Iran's oil industry is among the oil minister's main tasks in his second term.

"There is bad news and good news," believes Chris Cook, a strategic market consultant, who also formerly headed the International Petroleum Exchange.

"The bad news is that the Trump administration is intent on making Iranian access to dollars — whether dollar payments or dollar investment via equity funding or debt financing — to all intents and purposes impossible, notwithstanding anything in the JCPOA," Cook said responding to Trend query regarding the Islamic Republic's capability to draw foreign investment to renew the country's oil and gas industry.

"The good news is that it is completely possible for trillions of dollars worth of investment to be made in Iran and in neighboring countries without using dollars at all. This is because accounting/pricing — or keeping score — of transactions in dollars is very different from using the dollar clearing system to repay dollar debts or repatriate dollar profits on investment," he added.

Iran's Oil Minister Bijan Namdar Zanganeh has in recent years been engaged in updating the long-standing 'Energy Diplomacy', developed during the former president Mohammad Khatami's administration, Cook reminded, adding that this 'smart energy policy' instrument consisted of energy swaps, such as the Caspian oil swap (flows of Caspian crude oil into northern Iran, exchanged for flows of crude oil delivered out of the Persian Gulf).

"In addition to reactivation of these and similar swaps, perhaps the most remarkable — and most important — 'Energy Diplomacy' was the recently contracted South Pars 11 investment by Total, through which 20 years' investment of technology, skills and experience will be swapped for a flow of condensate. The outcome is firstly a 'smart swap' of intellectual value for the value of carbon fuels, and secondly, through the participation of Chinese investors the deal provides 20 years' security of condensate demand for Iran and 20 years' security of condensate supply for China," Cook suggested.

"The point is that such smart swaps will — within a suitable networked market platform or 'energy clearing union' — enable many hundred billion dollars worth of intellectual and other resources required by Iran to be swapped for many hundred billion dollars worth of carbon fuels supplied by Iran.

"Since such swaps do not take place on the oil market platform dominated by the US, they do not require settlement in dollars through the US dollar clearing system from which Iran is effectively excluded."

[screwball]

Published: 0629 GMT August 29, 2017

 

 

Rouhani: US unable to forge anti-Iran consensus

president.ir

President Hassan Rouhani said Tuesday that the United States under Donald Trump is not able to form a consensus against the Iran nuclear deal signed in 2015 with world powers.

In an interview broadcast live on Iranian national television, Rouhani said that the US lacked any backing from the other signatories for its hostile stance toward the deal, and that the Trump administration faced “the most difficult circumstances” in trying to upend it.

“Of course, we will respond to any violation of the commitments carried out by the US, but even so, the US faces the most difficult conditions and we are in the best position,” Rouhani said. “We will not be the ones to initiate a violation of the nuclear deal, not ever, but neither will we sit idly by in the face of violations of the deal by others.”

He pointed out that the European Union continues to support the deal, known as Joint Comprehensive Plan of Action (JCPOA), despite pressure from their ally, the US.

“As you know, the EU’s stance on the JCPOA is clear; all 28 countries in the bloc have announced that they are committed to the nuclear agreement,” he added.

Rouhani shrugged off any concerns about recent attempts by the US government to influence the United Nations nuclear watchdog, the International Atomic Energy Agency, which is responsible for overseeing Iran’s compliance with the terms of the pact.

“I doubt that the Agency will bow to pressure from the US, and neither will we,” Rouhani said.

Rouhani also noted that Iran can never be bullied into permitting the inspection of its military sites.

Rouhani said that Washington’s demands from IAEA over the inspection of Iran’s military sites would probably not be accepted by the UN body.

"The International Atomic Energy Agency is very unlikely to agree to the US’s demands over inspecting our military sites," he stressed.     

The president referred to the Friday statements by US Ambassador to the UN Nikki Haley who urged the IAEA to request access to Iranian military sites, in what is regarded as an attempt by the US to undermine the JCPOA.

The deal was reached between Iran and the P5+1 countries — namely the US, Russia, China, France, Britain, and Germany — in July 2015 and took effect in January 2016.

US President Donald Trump has called the JCPOA — which was negotiated under his predecessor, Barack Obama — “the worst deal ever” and repeatedly threatened to tear it up.

Rouhani further stressed that regulations determine the framework of Iran’s relation with the IAEA not Washington and its pressure.

 

[screwball]

Foreign banks to open €22bn LOC for Iran

News ID: 4073774 - Wed 30 August 2017 - 12:53

Economy

TEHRAN, Aug. 30 (MNA) – CBI Governor Seif said Lines of Credit (LOCs) worth 22 billion euros will be allocated to Iran in the near future for implementation of various projects.

Valiollah Seif, Governor of the Central Bank of Iran, said Austria, Denmark, Italy and some other countries will open a 22-billion-euro line of credit for Iran in coming days.

He recalled that a separate eight-billion-euro LOC has been recently signed with South Korea indicating that the measure would lead to further investment and a rise in production and employment.

“Had it not been for the Joint Comprehensive Plan of Action (JCPOA), Iran would have never obtained these outstanding achievements,” he underlined.

Seif later touched upon the process of unifying forex rates saying “the main objective pursued in unifying dual foreign exchange rates is to maintain stability in the country’s economy.”

The official, while noting that the current multi-tier rates are bound to be unified, referred to certain considerations before the project is launched in order to avoid hasty decision makings.

CBI governor also stress the need to follow up compliance of Iran’s economic activities with international standards referring to adequate international banking ties as a necessary prerequisite to the process.

“More than 750 broker relations have been formed following JCPOA implementation thanks to assistance provided by the Iranian Foreign Ministry,” he continued.

The official stated that Central Bank of Iran was in talks with several foreign counterparts to open joint account in a bid to alleviate the need for foreign exchange in transactions.

“No doubt, the American side has had breach of promise as regards the nuclear deal,” noted Seif adding “nevertheless, Iran’s banking relations have been promoted with the word and more favorable, though not ideal, conditions have emerged in the field.”

He expected the US to feel more responsible and urged OFAC to immediately resolve ambiguities held by certain countries in conducting ties with the Iranian banking system.

[screwball]

Coming days...

[pokerplayer]

1 minute ago, screwball said:

Coming days...

 

You hit a proverbial grand slam tonight my friend. I will enjoy tipping one with you wherever that may end up being.

 

  pp

[screwball]

The official, while noting that the current multi-tier rates are bound to be unified, referred to certain considerations before the project is launched in order to avoid hasty decision makings.

CBI governor also stress the need to follow up compliance of Iran’s economic activities with international standards referring to adequate international banking ties as a necessary prerequisite to the process.

“More than 750 broker relations have been formed following JCPOA implementation thanks to assistance provided by the Iranian Foreign Ministry,” he continued.

The official stated that Central Bank of Iran was in talks with several foreign counterparts to open joint account in a bid to alleviate the need for foreign exchange in transactions.

[screwball]

1 minute ago, pokerplayer said:

 

You hit a proverbial grand slam tonight my friend. I will enjoy tipping one with you wherever that may end up being.

 

  pp

Dubai and my first shout 

[screwball]

Iran’s economy reassuringly stable: ICB Gov.

News ID: 4072222 - Mon 28 August 2017 - 20:30

Economy

TEHRAN, Aug. 28 (MNA) – CBI governor, says that Iran’s economy is enjoying a stable status currently which makes it reassuring for investors, traders, and businesspeople.

“Fortunately, our economy, after a period of drastic fluctuations, has found a very reassuring status, taking advantage of the principles of the resistance economy,” said Valiollah Seif, the Governor of Central Bank of Iran (CBI), on Monday.

He made the remarks at the bureaucratic council of Iran’s South Khorasan Province, in the capital city of province, Birjand.

“The eleventh administration started at a time of storm-hit situation,” highlighted the official defending the accomplishments of the Rouhani’s first term administration which left office very recently to his second term administration.

“Foreign trade, at the beginning of the 11th cabinet, made up 15% of Iran’s economy, suffering from extended anti-Iran sanctions,” recounted the Iranian official, “our banking system lagged behind because of the disconnection between Iranian and foreign banks in the time of sanctions.”

He added that a big part of Iran’s economic growth of last year which hit a rate of 12.5% was owed to the flourished oil export of the post-JCPOA era, “the limitations imposed on Iran’s oil export had created a difficult time for the country.”

The senior official asserted that while many countries are experiencing huge turbulences, Iran has kept a stable economy. He boasted that during the last four years the volume of export has exceeded the volume of import in Iran, as a results of many measure taken.

[pokerplayer]

Just now, screwball said:

Dubai and my first shout 

 

 

Dubai is bloody awesome... Gold Suk, is a must to stop and see.

 

pp

[screwball]

25 minutes ago, pokerplayer said:

 

 

Dubai is bloody awesome... Gold Suk, is a must to stop and see.

 

pp

Yep can't wait and have my hotel picked out and ready to rock and roll

[markb57]

i would rather do Canada. 

[sandfly]

it's coming

[Freedomwish]

I'm down to party any damn where, just give us the green light!! 

[screwball]

President: Gov't to prioritize sound banking system

Tehran, Aug 29, IRNA – President Hassan Rouhani highlighted the role of banks in the country's economy, saying that the unhealthy competition among them should be rectified.

Talking on the occasion of Government Week late on Tuesday, he added that capital of the banks is low which should be increased.

Rouhani who was elected as Iran's president for another four year in May elections on a platform of uplifting economy, further noted that the interest rate should conform to inflation rate or it should be a little more than that. 

The banks should lower interest rates of the loans, he said, urging them to sell their stagnant capitals.

'One of the main programs of my administration is to reorganize the banks, implement article of the Constitution, remove monopoly and attract foreign and domestic capitals, among the others,' he said.

8072**2050

 

 

 

 

 

[gregp]

23 hours ago, screwball said:

Yep can't wait and have my hotel picked out and ready to rock and roll

 

I'm in! Never been there. 

[screwball]

08/29/17

Iran eyeing more foreign investment in its capital market

By Mahnaz Abdi, Tehran Times

Iran is planning to attract more foreign investors to its capital market through holding a series of international conferences to introduce this market, Hamid Rouhbakhsh, the director of public relations and international affairs of Tehran Stock Exchange (TSE), told the Tehran Times in an exclusive interview on Monday.

Tehran Stock Exchange (TSE)
 

Iran's Securities and Exchange Organization (SEO) will hold an international conference and exhibition in the second month of autumn to introduce the country's capital market to the foreigners, he announced.

Rouhbakhsh believes that Iran's increasing international relations after the implementation of its nuclear deal, known as joint comprehensive plan of action (JCPOA), with the world's major powers in January 2016 is facilitating presence of foreign investors in the country's stock exchange.

"Our international ties are being expanded after the JCPOA and it will lead to easier presence of foreign investors in TSE", he stated.

He mentioned problems related to money transactions as the main barrier that foreign investors are facing for activity in TSE. "They want to transfer money through official transaction ", he said while noted that very good measures have been taken after the JCPOA which makes this easier for them.

About the limits that the TSE has set for the foreigners to buy the shares of Iranian companies, Rouhbakhsh said a foreign entity cannot buy more than 10 percent of the shares of an Iranian company and also more than 20 percent of the company's shares cannot be sold to a group of foreigners.

Of course, it is not considered a limit given the few numbers of foreign investors in TSE at the moment, he opined and added that when it comes to the strategic foreign investors, owning 100 percent of the shares of a company is possible for them through receiving permit from SEO.

[screwball]

Some of the most dramatic evidence of change in Iran since the nuclear agreement that brought sanctions relief to the country is visible in Tehran’s stock market.

"In the past 18 months, about 193,000 people have sought permission to trade on the bourse," Tehran Stock Exchange Corporation's Chief Executive Officer Hassan Qalibaf-Asl said.

At least 45 companies have applied to list their shares since the onset of the current Iranian year (March 21) and he expects as many as 13 initial public offerings within 12 months, compared with seven in the corresponding period of the year before.

“The market has been on the rise” since the agreement was implemented in January 2016, Qalibaf-Asl said in an interview with Bloomberg at his office in the Iranian capital.

"The May reelection of President Hassan Rouhani, who backed the accord, was a further 'positive signal' of continuity for the market."

Iran, the second-largest economy in the Middle East with industries spanning energy, mining and automobile, holds clear potential for foreign investors and Europeans have been at the forefront of new business deals since the easing of a decade of strict sanctions.

However, remaining US curbs and concerns that President Donald Trump may undermine the nuclear agreement or slap further measures on the country of 80 million people have slowed the return of banks and companies.

The value of stocks traded in Tehran more than doubled in 2016 to the equivalent of about $19.6 billion, as the market’s main index climbed 29%.

"In the first half of 2017, the benchmark dropped 1% and the value of stocks traded fell 37%. That’s not all due to Trump," said Payam Afzali, the head of investment banking at Kian Capital, said by phone from Tehran.

“We have false negative sentiment due to the fact that interest rates are so high. You can get much higher returns if you put your money in the bank. But the message communicated by the government has been time and time again in the past year-and-a-half that we are going to implement policies to bring down the deposit rates and that is going to affect investors’ sentiment toward the risk of equity in the public market.”

Qalibaf-Asl said investors are not obsessing about potential actions Trump may take.

“Politics is important, but it’s not all about political news,” he said. “The market reacts to economic variables. While Trump’s election and his pressure on Iran have not been helpful, the real impact on the market would only be felt from steps endangering the nuclear deal, rather than mere talk."

Qalibaf-Asl noted that in contrast with the interest shown by locals, foreigners have been slow to participate, partly due to practical difficulties in transferring money and the lack of established brokerage and settlement networks.

“A foreign investor may want to be present, but the fact is the mechanism, or working with its own brokerage firm, the issue of custodianship. These are things that need to be addressed,” he said. “Some investment banks abroad are looking at buying brokerage firms in Iran to establish brokerage relations. If these relations happen, the presence of foreign investors will grow.”

> Index Inclusion

Iranian stocks trade at attractive valuations, with average price-to-earnings ratios of seven, compared with the 14 to 16 typical of frontier markets, emerging markets and the rest of the Middle East, said Ramin Rabii, CEO of Tehran-based financial services group Turquoise Partners. "But, for Iran to become a mainstream investment destination, it needs to win inclusion in international indexes," he said.

The odds are against that, as “the large banks are not here, large credit rating agencies are not here, because of the fact that American investors are not here”, Rabii said.

With US companies compiling many of the global indexes, Iran is unlikely to be included in them anytime soon, “which means that large flows of capital will not happen”, he added.

Here are further comments from Qalibaf-Asl on the bourse’s efforts to expand trading:

- The exchange has signed preliminary agreements with 12 foreign bourses and is in “serious negotiations” with the Istanbul Stock Exchange about the listing of fixed-income bonds.

- It has proposed to the Iranian government that companies be able to issue foreign-currency denominated bonds. The central bank is considering the initiative, which would help local companies meet foreign-currency needs and reduce currency risks for foreign investors.

- Foreigners hold no more than 1% of the Tehran exchange’s market capitalization. They are present in 36 out of 38 industries represented on the exchange, including oil, gas, petrochemicals, mining and food.

- There remains potential for a large share of foreign investors, if money transfer complications can be resolved.

 

[SnowGlobe7]

On 8/30/2017 at 8:34 PM, screwball said:

President Hassan Rouhani said Tuesday that the United States under Donald Trump is not able to form a consensus against the Iran nuclear deal signed in 2015 with world powers.

 

wanna bet???

[screwball]

Promoting ties with neighbors top on gov't agenda: Iran vice president

Zahedan, Sep 1, IRNA – Developing trade and economic relations with neighboring and regional countries is a priority in the Iranian government's policies, Vice President for Economic Affairs Mohammad Nahavandian said.

Nahavandian made the remarks Thursday night in a meeting with the economic officials of the southeastern province of Sistan-Baluchestan.

'The government tries to pave the way for businessmen to get familiar with neighboring countries markets by holding constant contacts,' said the official. 

'Iranian government is preparing the ground for the private sector to take the best advantage,' he added.

Referring to the fierce competition in the world to attract foreign investment, Nahavandian said Iran is trying hard in this field, too.  

He emphasized that foreign investors cannot ignore Iran's market. 

9376**1771

[screwball]

The United States is pushing UN nuclear inspectors to check military sites in Iran to verify it is not breaching its nuclear deal with world powers.

But for this to happen, inspectors must believe such checks are necessary and so far they do not, officials told Reuters.

Last week, US Ambassador to the United Nations Nikki Haley visited the International Atomic Energy Agency, which is scrutinizing compliance with the 2015 agreement, as part of a review of the pact by the administration of US President Donald Trump. He has called it "the worst deal ever negotiated".

After her talks with officials of the UN nuclear watchdog, Haley claimed: "There are ... numerous undeclared sites that have not been inspected. That is a problem."

Iran dismissed her demands as "merely a dream".

IAEA has the authority to request access to facilities in Iran, including military ones, if there are new and credible indications of banned nuclear activities there, according to officials from the agency and signatories to the deal.

But they said Washington has not provided such indications to back up its pressure on the IAEA to make such a request.

"We're not going to visit a military site like Parchin just to send a political signal," an IAEA official said, mentioning a military site often cited by opponents of the deal, including Iran's arch-adversary Israel and many US Republicans. The deal was reached under Trump's Democratic predecessor, Barack Obama.

IAEA Director General Yukiya Amano frequently describes his Vienna-based agency as a technical rather than a political one, underscoring the need for its work to be based on facts alone.

The accord restricts Iran's atomic activities with a view to ensuring its peaceful nature in return for sanctions relief.

The deal also allows the IAEA to request access to facilities other than the nuclear installations Iran has already declared if it has concerns about banned materials or activities there. But it must present a basis for those concerns.

Those terms are widely understood by officials from the IAEA and member states to mean there must be credible information that arouses suspicion, and IAEA officials have made clear they will not take it at face value.

"We have to be able to vet this information," a second IAEA official said, asking not to be identified.

***No New Intelligence

Despite Haley's public comments, she neither asked the IAEA to visit specific sites nor offered new intelligence on any site, officials who attended her meetings said. A US State Department spokesman confirmed this.

"She conveyed that the IAEA will need to continue to robustly exercise its authorities to verify Iran's declaration and monitor the Joint Comprehensive Plan of Action," the spokesman added, using the deal's official name.

Under US law, the state department must notify the US Congress every 90 days of Iran's compliance with the deal. The next deadline is October. Trump has said he thinks by then, Washington will declare Iran to be non-compliant—a stance at odds with that of other five world powers, including US allies in Europe.

An IAEA report published in 2015 as part of the deal formally drew a line under whether Iran pursued nuclear weapons in the past, which is why new information is needed to trigger a request for access.

IAEA has not visited an Iranian military facility since the agreement was implemented because it has had "no reason to ask" for access, the second agency official said.

The deal's "Access" section lays out a process that begins with an IAEA request and, if the UN watchdog's concerns are not resolved, can lead to a vote by the eight members of the deal's decision-making body, namely the United States, Iran, Russia, China, France, Britain, Germany and the European Union.

Five votes are needed for a majority, which could comprise the United States and its western allies. Such a majority decision "would advise on the necessary means to resolve the IAEA's concerns" and Iran "would implement the necessary means", the deal's "Access" section says.

Iran has reiterated commitment to the terms of the deal despite Trump's stance, but has also said its military sites are off limits, raising the risk of a standoff if a request for access were put to a vote.

"If they want to bring down the deal, they will," the first IAEA official said, referring to the Trump administration. "We just don't want to give them an excuse to."

 

 

[screwball]

Us will lie as they did for the so called weapons of mass destruction...Intel will be false good luck 

[screwball]

Central Bank of Croatia keen on boosting ties with Iran

Tehran, Aug 31, IRNA – Governor of Central Bank of Croatia said that the biggest bank of the country is seeking development and deepening of relations with Iran.

Governor of Central Bank of Iran Valliollah Seif in a meeting with his Croatian counterpart, Boris Vujcic, referred to extensive political ties between the two countries, urging development of banking relations between the two sides.

Noting that Croatian banking system is in a desirable situation, he said Iran is keen on forging suitable relations with the country’s banks.

Describing banking ties as prerequisite to economic relations, he said that the two countries’ banks can have cooperation in various forms such as joint investment and setting up branches.

Iran welcomes boosting cooperation between the two countries, he said, noting that at present, there are necessary capacities for promoting mutual collaboration.

Seif also hoped that Iranian traders’ upcoming visit to Croatia would help enhance economic and trade relations.

He also said that Croatian banks can first shape their brokerage relations with Iran’s state-run banks and then promote their communications with other Iranian banks.

Seif also said that further acquaintance of Iran’s situation will help foster commercial cooperation between the two countries.

Lack of sufficient familiarity with the Iranian banking system has prompted the countries such as Croatia develop mentalities about compliance of the Iranian banks with the international standards, he said, noting that the Iranian banks are working hard to keep up with the international standards.

Governor of Central Bank of Croatia, for his part, said that the two countries have a good record of cooperation in the course of the history, but commercial and economic relations are not at an acceptable level and it should be improved further.

Describing exports as the main impetus to economic growth in Croatia, he said that currently, the country boasts of desirable economic growth, which is a two-digit figure.

The Croatian official also said that Iranian companies visit to the country is a suitable opportunity for broadening cooperation.

8072**2050

[screwball]

In another step toward Iran’s gradual revival of banking ties with the international community, the governor of the central bank of Croatia has announced that the European nation’s biggest lender is eager to connect with its Iranian counterparts.

“We have initiated negotiations with Croatian banks so that cooperation between Iranian and Croatian banks can begin in payment transactions and fortunately we have made good progress,” Boris Vujcic was quoted as saying by the official news website of the Central Bank of Iran.

“In this regard, Croatia’s biggest bank is looking to expand and deepen its ties with Iran,” he also reportedly said in his meeting with CBI Governor Valiollah Seif, without specifying the name of the bank.

Hrvatska Po?tanska Banka, headquartered in Zagreb, is the largest Croatian bank. According to its website, the Republic of Croatia directly owns 42.42% of its shares while the rest belongs to other state entities.

Vujcic, who heads the Croatian National Bank, as the nation’s central bank is known, referred to the visit by an Iranian business delegation scheduled for next month as an opportunity for expanding bilateral ties.

While representatives of Iranian companies led by the Iran Chamber of Commerce, Industries, Mines and Agriculture will soon travel to Croatia as part of the delegation, the official said Iranian lenders could also join the delegation to gain a better understanding of their Croatian counterparts.

“In addition to this, the Croatian government has held negotiations with state-owned banks to expand trade ties,” Vujcic said, but also pointed out that as a policymaker, the Croatian National Bank can only encourage the nation’s banks to work with their international counterparts.

“Ultimately, it will be the banks themselves that must choose to establish strong ties and decide to expand their joint activities,” he added.

However, Vujcic said a number of Croatian companies have expressed readiness to work in Iran, which sign could herald better banking ties.

Seif noted that Iranian banks wish to establish ties with Croatian lenders to expand trade ties.

“Croatian banks can initially form ties with state-owned Iranian banks and expand their ties gradually after they become familiar with our economy,” he said.

Seif stressed that Iranian lenders are working to improve in terms of conforming to international standards and the economy has immensely progressed since the nuclear deal provided sanctions relief.

[screwball]

Bank Melli Iran, the nation’s biggest lender, is ramping up efforts to teach anti-money laundering principles to its staff. “A total of 1,200 Bank Melli staff members have completed full online courses on standards devised by the Financial Action Task Force on combating money laundering,” a member of BMI’s board of directors was quoted as saying by the official news website of the bank. Gholamreza Panahi added that all BMI workers will soon undergo similar courses and supplementary courses are to be held in the foreseeable future. Panahi said staff members, who complete the courses, will acquire a certificate that will be necessary for their continued presence in the bank. “Two courses on foreign exchange and rial affairs are being designed, which will be held soon,” he said.

 

[screwball]

Two courses on foreign exchange and rial affairs are being designed, which will be held soon,” he said.