Iranian Rial

[gixxerfrog]

http://m.gulf-times.com/story/463702/Iran-to-unify-exchange-rate-after-nuke-deal-implemented

Thoughts?

[Freedomwish]

http://m.gulf-times.com/story/463702/Iran-to-unify-exchange-rate-after-nuke-deal-implemented

Thoughts?

 

Hey there Gixx,

 

My thoughts are at this time.....if you're a US Citizen and/or you're on US soil, we've hit a snag.  Other sanctions yet remain in place.     No currency exchanges allowed under the US Treasury and the American Clearing Houses.  Check out this latest link: http://www.ft.com/cms/s/0/d826bd40-d0b9-11e5-92a1-c5e23ef99c77.html#axzz40Gm7bHMk

 

I believe it'll be a long while even after it's been said something is to happen in the next 4 months.  And with the way of how our political candidates are lined up for the White House, foreign banks are still weary to deal with the US sanctions even in 2017.  

 

Take this simply as a gamble, who knows what's gonna happen.

 

Best of luck.  

[VIZIOIRAQI]

Related: DAVOS

Iranian banks reconnected to SWIFT network after four-year hiatus

DUBAI

 

A red London bus passes a branch of Iranian owned Bank Sepah International in London December 22, 2011.

REUTERS/LUKE MACGREGOR

 

Global transaction network SWIFT has reconnected a number of Iranian banks to its system, allowing them to resume cross-border transactions with foreign banks after the lifting of sanctions on Tehran, a SWIFT official said.

Iran's re-entry on to the SWIFT system, four years after banks were cut off from the network, had became a political issue in the Islamic Republic in recent weeks.

Some conservative parliamentary critics of President Hassan Rouhani had complained the reconnection was not occurring fast enough and the country's nuclear deal was not delivering the expected economic benefits.

 

 

 

Iran is desperately trying to boost oil exports to regain market share lost during years of sanctions, which artificially curtailed its output.

Despite the removal of the sanctions last month, only three cargoes with Iranian crude have sailed to Europe so far, a fraction of what Tehran has promised to ship to its old customers. Traders have said a slow pick up in exports was partially due to SWIFT problems.

"Nobody could pay the Iranians via normal lines, not even in euros," one veteran oil trader based in Europe said, adding that after the reconnection he expected normal banking business to resume.

Iranian banks were disconnected from Belgium-based SWIFT, the Society for Worldwide Interbank Financial Telecommunication, in March 2012 as international sanctions tightened against Tehran over its disputed nuclear program.

The system is used to transmit payments and letters of credit and Iran's exclusion damaged its ability to conduct foreign trade and money transfers. Under a nuclear deal reached between Tehran and world powers, most sanctions against the country were removed last month.

"SWIFT has completed the on-boarding process for these banks and can confirm that they have now been reconnected to SWIFT," said Onur Ozan, a country manager at SWIFT.

"We will continue to work with the remainder of the entities that have applied to rejoin SWIFT to ensure their smooth reconnection," Ozan said in a statement carried on the Iranian central bank's website on Wednesday.

Ozan did not give details of the Iranian banks that had been reconnected. The central bank said in its statement that all banks not covered by remaining sanctions had been connected, including itself, but some of the banks' foreign subsidiaries and branches were still working on it.

Although SWIFT's action will make it easier to move money into and out of Iran, many foreign banks are expected to remain wary of doing business with the country, at least initially.

The nuclear deal says non-U.S. banks may resume trading with Iran, but because Washington retains sanctions against Iran that predate the nuclear crisis and were imposed over other issues such as human rights, bankers are uncertain of the legal basis for business and worry they could still be targeted by U.S. officials.

U.S. banks remain prohibited from doing business with Iran directly or indirectly.

 

(Reporting by Andrew Torchia in Dubai; Additional reporting by Phil Blenkinsop in Brussels, and David Milliken and Dmitry Zhdannikov in London; Editing by Keith Weir and David Holmes)

Read more: http://dinarvets.com/forums/index.php?/topic/216210-iranian-banks-reconnected-to-swift-network-after-four-year-hiatus/#ixzz40XGuKWdu

[bohica]

If the US will not recognize the Rial I wonder if a quick trip up to Canada would fix that problem once it increases.  Any thoughts?

[VIZIOIRAQI]

If the US will not recognize the Rial I wonder if a quick trip up to Canada would fix that problem once it increases.  Any thoughts?

We might not have to let's see how things play out Iran seems to think they will be in good shape in 6 months.

[bohica]

I hope so...that would play into my time line well.  Actually any time would play into my time line well. 

[Freedomwish]

If the US will not recognize the Rial I wonder if a quick trip up to Canada would fix that problem once it increases.  Any thoughts?

 

Hey, I thought the same...but the catch is that for the currency exchange at this time, it must NOT PASS through any US Clearing Houses or banks who would need to use any intermediary bank that would exchange in US Dollars and it would be traced.....this is tricky, indeed.  So, my guess is that if unless you have already have a Canadian account, you're NOT a US Citizen, you won't be exchanging through any banned banks per US Sanctions regarding the use of the dollar......then I'd say you're good to go.  Europe is looking very nice this time of the year lol 

 

But these are my current thoughts.....over some more whiskey drinks later tonight.   

We might not have to let's see how things play out Iran seems to think they will be in good shape in 6 months.

 

We shall see indeed, yup. 

Edited February 22, 2016 by Freedomwish

[gixxerfrog]

Hey, I thought the same...but the catch is that for the currency exchange at this time, it must NOT PASS through any US Clearing Houses or banks who would need to use any intermediary bank that would exchange in US Dollars and it would be traced.....this is tricky, indeed. So, my guess is that if unless you have already have a Canadian account, you're NOT a US Citizen, you won't be exchanging through any banned banks per US Sanctions regarding the use of the dollar......then I'd say you're good to go. Europe is looking very nice this time of the year lol

But these are my current thoughts.....over some more whiskey drinks later tonight.

We shall see indeed, yup.

Couldn't you exchange it for Canadian currency first, Then to USD?

[Freedomwish]

Couldn't you exchange it for Canadian currency first, Then to USD?

 

Ahhhhhh, good one - didn't see it that way, duh!  Hey, I'm no expert - but shoot, why not? 

 

This theory would be even more of a reason for me to visit Montreal for my next sudden "vacation".   Yup!

[Freedomwish]

Hey, have anyone of you seen this?  Not sure if it means anything right now, but I continue to wonder:

 

http://www.brecorder.com/market-data/rates-a-schedules/118/20277/

 

Look for the line indicated for IRR.....what are your thoughts? 

[gregp]

2.38 ....that's crazy.

[nfire]

Cool

[bohica]

Now I just woke up so Please EXPLAIN what I just read about 2.38.  I saw it now please explain it.  thank you...

[bohica]

I just got off the phone with my broker.  Things are looking quite interesting in our corner.  If the US banks do not recognize the Rial how are you all planning to exchange your currency?  thank you

[gixxerfrog]

I just got off the phone with my broker. Things are looking quite interesting in our corner. If the US banks do not recognize the Rial how are you all planning to exchange your currency? thank you

Only a few hours to the Canadian boarder.

I just got off the phone with my broker. Things are looking quite interesting in our corner. If the US banks do not recognize the Rial how are you all planning to exchange your currency? thank you

In what way? They plan on raising their rate??

[bohica]

He seemed strongly to indicate that the first part of March should look nice for us.  There was some talk of Iran and Iraq going together but if Iraq does not then Iran will go on its own.  Rates are encouraging but he would not mention too much about that topic. 

[bohica]

My question with the border is that a person would be bringing across more than the normal 10k.  If they could get it all into Canada would the banks honor it figuring that it had to be carefully brought across into the country?

[blueskyline]

Forgive me .I'm TRYING not to get excited . SDR Units show a price in which a country can borrow per unit right ? I hope this does reflect a raise in value of the rial .Until then to me it looks like the economic conditions of the country allow it to have such a high SDR value . From a novice of course . 

[gixxerfrog]

My question with the border is that a person would be bringing across more than the normal 10k. If they could get it all into Canada would the banks honor it figuring that it had to be carefully brought across into the country?

Why not make a few trips to the bank with a few family members? And also to different banks... I'll take a nice vacation to Canada and exchange X amount of dollars per day if they rv at a decent price. Or even stay on the US side and go to the Canadian side (Niagara falls) and then exchange it.

[Freedomwish]

2.38 ....that's crazy.

Gregp, I had nearly caught a stoke when I saw that line.......yeah, crazy indeed - we shall see!

 

Cool

Yes sir 

 

Now I just woke up so Please EXPLAIN what I just read about 2.38.  I saw it now please explain it.  thank you...

Buddy, I'm still a bit dazed and shaken of the possibility - I am trying to figure it out myself....

 

(1) The value of the U.S. dollar in terms of the SDR is the recip rocal of the sum of the dollar values, based on market exchange rates, of specified quantities of the first four currencies shown. See SDR Valuation.  (It's saying based on the first big four - Euro, Yen, Pound and Dollar - and the Chinese Yuan is expected to be entered this October!  Crazy!! )

The value in terms of the SDR of each of the other currencies shown above is derived from that currency's representative exchange rate against the U.S. dollar as reported by the issuing central bank and the SDR value of the U.S. dollar, except for the Iranian rial and the Libyan dinar, the values of which are officially expressed directly in terms of domestic currency units per SDR. All figures are rounded to six significant digits. See Representative Exchange Rates for Selected Currencies. (We all already know other countries are starting to lift their own sanctions placed against Iran....Canada is one of them!)

 (2) The value in terms of each national currency of the SDR is the reciprocal of the value in terms of the SDR of each national currency, rounded to six significant digits. (This expected IRR rate exchange is gonna' be nuts once it happens and they are already anticipating for it to happen this year indeed.  )

 

I just got off the phone with my broker.  Things are looking quite interesting in our corner.  If the US banks do not recognize the Rial how are you all planning to exchange your currency?  thank you

Thanks, good to know - I haven't a clue yet, but my understanding still that if you're a US Citizen and expect to make your exchange via any US and Non-US bank anywhere near US Treasury, we're stuck.   ......I sense there is hope for things to change later on as things get rather heated as the IRR starts to come into the global market....Does your broker happen to know or offer any options available based on the US sanctions currently remains?

 

My question with the border is that a person would be bringing across more than the normal 10k.  If they could get it all into Canada would the banks honor it figuring that it had to be carefully brought across into the country?

That's rather even riskier in my opinion......it's just like if you'd be smuggling drug money across the borders.....they would want to know I guess where and how you obtained your currency...I don't know, just my thoughts at this time....I've thought of the same... one would need to be very creative, cautious and careful to proceed this way.  Yup.

 

The president has ordered a move to a single forex rate by March 21st!

 

Screwball.......don't be screwing with us!!    Where did you hear of this?

Edited February 29, 2016 by Freedomwish

[bohica]

What does a single forex rate mean for our investment.

[Freedomwish]

What does a single forex rate mean for our investment.

 

I second bohica's question, what does this mean? 

[gixxerfrog]

I took it as a single rate as in right now they have 2 rates a street rate and a global?? Rate (which are close only a few 100 or so apart).

[bohica]

I am concerned that after this happens that I will be holding something worth a few million dollars and not be able to exchange them.  

[Freedomwish]

So they want parity with usd? They want to remove four zeros! Well that won't give you parity 1 rial will be worth more than 1 usd! Just saying! They want a managed float where iran will control the rate where they will have their own exchange market! President has ordered unification and single rate by March 21st! And new Europe / Asian credit cards launched by March 20th! Hmmmmm! What do you think?

My man Screwball, that was some awesome scoop you've provided, thanks!  Doesn't this process seem somewhat if not, almost in line with the Dinar?  I got an eerie feeling Iraq and Iran are somehow playing along the same lines...but yeah, I see the IRR happening and coming out first before the Dinar!  But reason of why perhaps of the big push, is because other countries are already on board with Iran and I guess the CBI is or will, try to match their currency rate on par with other countries who'd gone away with the crazy sanctions.  It's hard to see yet alone to cope, that the US will be left behind with hardly any leftovers after all is said and done!  Incredible! 

 

I am concerned that after this happens that I will be holding something worth a few million dollars and not be able to exchange them.  

 

I have a gut feeling, you may not have to worry too much about that when the time comes.  I'm keeping a close watch on when the big corporate giants i.e. Apple, Microsoft, Google, IBM, Barclays, JP Morgan, etc. make their moves out there.....and then, so will we from out here.  Yup!

Edited March 1, 2016 by Freedomwish