Iranian Rial

[climber7]

3 hours ago, gixxerfrog said:

The India rupiah is 13,130 to 1 ..... the rial is 32,xxx to 1 I dont think that's too far off to not post it, but who knows maybe. I would think no matter what the rate is it should be posted. You don't go into a store and see something without a tag because it's a lot of money to buy. I'm curious if it just recently went blank or how long it's been blank ? 

 

A little off topic, but just what IS a 'gixxer-frog' haha

[SnowGlobe7]

[pokerplayer]

Hi Snow, Nothing showing ??

pp

[screwball]

4 hours ago, gixxerfrog said:

The India rupiah is 13,130 to 1 ..... the rial is 32,xxx to 1 I dont think that's too far off to not post it, but who knows maybe. I would think no matter what the rate is it should be posted. You don't go into a store and see something without a tag because it's a lot of money to buy. I'm curious if it just recently went blank or how long it's been blank ? 

yeah not sure when it went blank or if it has always been blank but funny that here we are talking about South korea, China and Iran and theybare all blank! Just saying! 

[screwball]

4 hours ago, gixxerfrog said:

The India rupiah is 13,130 to 1 ..... the rial is 32,xxx to 1 I dont think that's too far off to not post it, but who knows maybe. I would think no matter what the rate is it should be posted. You don't go into a store and see something without a tag because it's a lot of money to buy. I'm curious if it just recently went blank or how long it's been blank ? 

Here you go some are here and some are not

https://www.imf.org/external/np/fin/data/rms_mth.aspx?SelectDate=2016-08-31&reportType=REP

[screwball]

http://www.presstv.com/Detail/2016/09/17/485086/Iran-minerals-titanium-production-investment

700 billion! 

[SnowGlobe7]

36 minutes ago, pokerplayer said:

Hi Snow, Nothing showing ??

pp

 

still using daughters chromebook,,,my laptop took a vacation 

I was posting a red frog to answer what a gixxer-frog' was...get it ginger frog

[screwball]

http://en.mehrnews.com/news/119778/Germany-Japan-release-Iran-s-petchem-assets

[screwball]

http://en.mehrnews.com/news/119793/Iran-the-Netherlands-negotiate-banking-issues

[screwball]

http://en.mehrnews.com/news/119772/Iran-to-ink-oil-contracts-worth-10bn

[gixxerfrog]

4 hours ago, climber7 said:

 

A little off topic, but just what IS a 'gixxer-frog' haha

Well as long time ago when I use to play a Playstation game called Socom, a buddy of mine made a clan name to play online and we were all frogs....he was PhatFrog and I ride a gsxr (Suzuki motorcycle) aka gixxer.... so I came up with the username of gixxerfrog. 

[pokerplayer]

20 minutes ago, gixxerfrog said:

Well as long time ago when I use to play a Playstation game called Socom, a buddy of mine made a clan name to play online and we were all frogs....he was PhatFrog and I ride a gsxr (Suzuki motorcycle) aka gixxer.... so I came up with the username of gixxerfrog. 

LOL wondered that same thing but was afraid to ask !! Good one frog.

pp

[screwball]

http://www.presstv.com/Detail/2016/09/17/485086/Iran-minerals-titanium-production-investment

[screwball]

http://www.presstv.com/Detail/2016/09/18/485243/Iran-aviation-finance-summit-Airbus

[screwball]

http://en.mehrnews.com/news/119811/Iran-rents-out-12-oil-tankers-to-foreign-firms

[screwball]

News ID:156416

Publish Date: Sun, 07 Aug 2016 18:44:37 GMT

Service: Iran

 

Unification of forex rates vital

The Central Bank of Iran (CBI) is intensifying efforts to unify the two-tier foreign exchange rate as part of its market reform policy to streamline the economy.

Currently, the official rate is about 31,000 rials per US dollar against over 35,000 rials on the open market.

The imposition of US-led sanctions during the second term of the previous administration (2009-2013) had thrown the foreign exchange market into disarray. The former government had to introduce a three-tier system to cushion the blow from the crisis. The gap between the first and the third rates climbed to over 300 percent in the dying months of the former government's tenure. This was because the rial had depreciated by 400 percent against hard currencies. Each US dollar was traded up to 40,000 rials during the peak of the forex crisis.

As soon as President Hassan Rouhani assumed office in August 2013, it formulated plans to rebuild the economy through reforms. Since then the CBI, in cooperation with other responsible bodies, has been pursuing plans to unify foreign exchange rates.

Sanctions posed a major obstacle to achieving this goal. However, grounds were prepared for overcoming the hurdles following the implementation in January of the nuclear deal signed in July last year between Iran and the P5+1 — the US, Britain, Russia, China, France and Germany.

Three days ago, the CBI stressed that the unification of forex rates will be vigorously pursued.

Last week, CBI Governor Valiollah Seif also authorized banks to trade in foreign currencies on the basis of open market rates. He said the order is an important step to replace the current two-tier foreign exchange system with a single one.

Seif also vowed that the unification plan will be implemented by the end of the current Iranian year in March 2017.

Officials say economic stability and calm in the market are essential to establish a single forex rate. Hence, they want to accurately assess likely consequences of the move.

Pros and cons of unified forex system

On the one hand, some experts have voiced concern that the system will be counterproductive. They say the unification of foreign exchange rates will remain elusive and only fuel anxiety in the market.

Such concerns are based on notions that economic and political developments have played a major role in triggering crisis in the forex market.

On the other hand, other economic pundits believe the unification of foreign exchange rates will mitigate the impacts of rent-seeking and will help drive forex dealers out of the market. Such pundits stress that economic transparency is the direct outcome of a unified forex system.

Amid such ideas, the market will determine whether such a system will be productive or counterproductive.

The government has not decided to unify forex rates overnight. It has devised plans for the last three years and weighed the pros and cons of the issue.

The CBI has stressed that the single rate system will be set based on market realities.

It means that the unified forex rate will be subject to fluctuations as in other countries. However, the CBI should monitor the market and adopt comprehensive approaches to forestall any economic upheavals which may plunge the forex market into turmoil.

Investment, forex market

In the wake of the nuclear agreement with major world powers, many foreign companies have rushed to the Iranian market to either resume or begin trade ties with the Islamic Republic.

Scores of agreements between Iranian companies and their foreign counterparts have so far been signed. Nonetheless, lack of economic transparency is still a major obstacle to boosting trade ties with other countries.

Undoubtedly, foreign investment is essential in helping states boost their economies. Foreign investors regard economic transparency as a prelude to concluding trade deals.

The unification of forex rates plays a crucial role in promoting   economic transparency since this will help investors draw up long-term plans for cooperation with their partners.

Meanwhile, the government should learn from the experiences of other countries which have succeeded in developing their economies. However, a successful economic model may not be useful in other countries.

The administrations can achieve its economic targets by combating economic corruption, preventing rent-seeking, and money-laundering. Apart from economic transparency, effective cooperation of the private sector, economic experts as well as the pursuit of clear and coherent economic policies are also crucial.

KeyWords

Iran

forex

rate

 

Related News :

• Forex rate fluctuations unlikely to continue
• Lowering of forex rates debatable

Comments

 

Comment

Name:
Email:
Comment:
Security Key:

[screwball]

http://financialtribune.com/articles/economy-business-and-markets/49076/forex-bourse-yearend

The Central Bank of Iran is planning to launch a foreign currency bourse in the banking system, probably after the unification of foreign exchange rates by the end of the current Iranian year (March 20, 2017).

Samad Karimi, director of CBI’s office for exportation, announced that CBI will allow bankers to conduct forex futures operations after the implementation of a single foreign exchange rate system, Banker.ir reported on Saturday.

“Forex futures deals would be conducted by banks,” he said.

However, no official announcement has been made yet.  

Futures deals were initially supposed to take place in the stock market, which would have also made secondary deals possible, but currency forwards are basically conducted between two parties at a specific rate and time, hence CBI has stipulated that such deals should be conducted by banks.

Officials in Iran Mercantile Exchange announced earlier that CBI has approved the establishment of a currency futures market, although it had set two prerequisites for the plan.

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.

The Central Bank of Iran is planning to unify forex rates by the end of the current Iranian year. In line with the plan, the CBI has officially permitted banks to start trading in the forex open market in line with its declared aim of unifying foreign exchange rates.

The directive allows banks and customers to negotiate the rates. Before the CBI decision, forex trade in the parallel market was dominated by powerful bureaux de change and street money changers.  

The previous administration had planned to launch a forex bourse four years ago when the exchange rates hiked considerably. However, the central bank announced that it would not shoulder any responsibility over exchange rates, if the bourse is established, which put an end to the plan.

Instead, CBI proposed the establishment of a trade center for selling foreign exchange at a subsidized rate.

Rate Unification

Deputy Economy Minister Hossein Mirshojaian also said that the government is planning to unify exchange rates in winter.  

“However, the process of foreign exchange transactions with the country should first be eased and foreign exchange resources of the country should be increased to make this possible,” he said.

Mirshojaian noted that any move for materializing the plan should be taken cautiously, otherwise it might result in the plans’ failure.

“The unification of foreign exchange rates would affect the rate of inflation, but the exact amount of surge in inflation rate depends on the set forex rates,” he said.

“CBI and the Ministry of Economy have proposed a rate, which is close to the official and market rates at present.”

According to the official, foreign currencies are currently traded 16% higher than subsidized rates in the open market and “the difference is promising”.

Iran was forced to revert to the controversial double exchange rate regime after nuclear-related sanctions caused turmoil in the forex market in 2011-12, during which the national currency lost almost 70% of its value within days.

[screwball]

The unification of foreign exchange rates would affect the rate of inflation, but the exact amount of surge in inflation rate depends on the set forex rates,” he said.

 

set it at about 1IRR : 3.30USD that will stop the surge in inflation! There's a plan!

Edited September 18, 2016 by screwball

[screwball]

http://www.en.eghtesadonline.com/Section-news-2/391-private-sector-waiting-for-single-forex-rates

 

good reason to do it then...

[screwball]

http://ecotical.com/single-forex-rate-comes-with-a-caveat/

[screwball]

 The existence of multiple ex­change rates has been regarded as one of the main impediments for financial transactions with international banks. According to CBI officials, the unification of the exchange rates is expected to take place sometime between September 2016 and March 2017. The recent move which allows banks to exchange hard currency at the free market rate can be re­garded as a step in that direction

[screwball]

People have probably seen this. But I will post

1. Business And Markets

Saturday, June 11, 2016

Single Currency Rate Deserves Priority

 

The foreign exchange market is one sector of the Iranian economy almost always affected by economic and political upheavals. Similarly, it exercises a major influence over key economic indicators such as the inflation rate, production and exports. It has been three years since the market experienced wild gyrations before settling in relative stability, thanks in large part to the economic policies of President Hassan Rouhani who took office in the summer of 2013.   

In a talk with Tehran’s Chamber of Commerce, Industries, Mines and Agriculture’s monthly magazine, the CEO of Export Guarantee Fund of Iran, Kamal Seyyed Ali shared his views on the key issues related to the currency market.

“A key issue is the unification of forex rates. The government and the Central Bank of Iran should not hesitate in unifying the rates,” he said. He elaborated by saying that the single rate plan is necessary as it helps put an end to rent-seeking, augurs well for transparency and facilitates foreign investment into the country.

According to Seyyed Ali another hurdle in the way of rate unification is the lack of sufficient correspondent banking relations with foreign lenders. “Furthermore we are not able to deal in the US dollar and this makes the single rate project more difficult.”

 Not by Decree

Asked about the current situation of the currency market, the senior official said the market is stable for the time being and added that the CBI should take effective measures in dealing with the forex market.

 “However, we should not try to stabilize the forex market by decree. Such actions are dangerous and could lead to a sudden increase in currency rates.”

He recommended the government to opt for “floating but managed” exchange rates.

On the effect of the plunge in international oil prices on the forex market, Seyyed Ali said it forces the government to spend more of its foreign exchange reserves. “Withdrawing from the foreign currency reserves is not a good idea, but if the CBI cannot manage to keep the pressure off the market forex rates may rise.”

The former deputy of the CBI’s forex department noted that the lifting of sanctions and normalizing relations with the outside world can and should help maintain the present stability in the forex market.

Pointing to the recent decline in the USD exchange rate, Seyyed Ali said it could ultimately harm Iranian export, and opined that further decline in the foreign exchange rate would in effect undermine exports in 2017.

Iran was forced to revert to the controversial double exchange rate regime after nuclear-related sanctions caused unprecedented turmoil in the forex market in 2011-12 in which the national currency lost almost 70% of its value within days. The government and CBI officials have said they intend to introduce a “floating,” yet “managed” exchange rate regime by October.

[screwball]

http://financialtribune.com/articles/economy-business-and-markets/43305/single-currency-rate-deserves-priority

[screwball]

http://www.tasnimnews.com/en/news/2016/09/18/1190079/obstacles-to-purchase-of-passenger-planes-to-be-removed-soon-iranian-minister

[climber7]

2 hours ago, screwball said:

 The existence of multiple ex­change rates has been regarded as one of the main impediments for financial transactions with international banks. According to CBI officials, the unification of the exchange rates is expected to take place sometime between September 2016 and March 2017. The recent move which allows banks to exchange hard currency at the free market rate can be re­garded as a step in that direction

 

Great articles but I really wish we had a more precise time of when this is going to go down. So tired of the cliffhanger...