Iranian Rial

[screwball]

The question is do they want us sanctions with banks and trading in usd lifted? Speculation?

[screwball]

 

 

Morteza Raad

.

Auto & Tech Desk

The latest auto deal was signed by Renault in Iran earlier this week, but what does the new deal mean in the long run to the Iranian automotive buying public?

Are car buyers likely to benefit from low-cost cars of reasonable quality or are they going to be overpriced as usual?

Renault recently reestablished itself in its full capacity in the Islamic Republic with several developments locally by introducing the Renault Sandero and Sandero Stepway most recently, as well as importing fully assembled Dacia models under the Renault brand, namely the Duster SUV and Talisman models.

The announcement that the joint venture would produce at least two new vehicles with Industrial Development & Renovation Organization will help Renault garb a majority share of the business and also be able to call the shots.

“The Iranian government wants to attract foreign investment in the Iranian car industry to bring competitive new products benefiting Iranian customers with respect to standard, quality and safety,” Iran’s Minister of Industries, Mining and Trade Mohammad Reza Nematzadeh said to waiting French press on the sidelines of the Paris Motor Show on September 30.

He added that different proposals were discussed and due to the company’s continuous presence in Iran (even during sanctions), Renault was given the chance to do the project.

During the signing of the JV, Carlos Ghosn, CEO of Renault, said that with a 2-million vehicle market projected by 2020, Iran’s automobile market has undeniable potential.

“The signing of this agreement corroborates the strategic choices we made in Iran and opens a new era by enabling Renault to assume a very strong position,” he said.

The new contract deems that the new factory will produce 150,000 vehicles per year, which will be added to the group’s capacity of 200,000, with a deadline for 2018 for start of operations.

Until now, Renault has had to work at the behest of the oligopoly of local companies, including IKCO, SAIPA and Pars Khodro. What this new deal possibly means is that they are now in control, as their partner is the IDRO Group itself and not any of its subsidiaries.

The IDRO Group is one of the largest companies in Iran and one of the biggest conglomerates in Asia. To further understand the company, it is both a partial owner of SAIPA and Iran Khodro, and by extension Pars Khodro, along with their subsidiaries.

What its presence in this contract means is there is a less of a chance of it failing in the short- to medium-term. It also points to the full backing of the government in the project, should it require further cash injections down the line.

  Better for Consumers

The new deal says it hopes to boost annual production to 150,000 vehicles, with the Renault Duster and Symbol models being the first to roll out of the local factory.

Like many other foreign car companies who started production in Iran in recent years, the Renault deal would have to produce a percentage of the parts in local factories.

This is not so much as a disadvantage as one may assume, due to the fact that Iran’s auto part makers are aware of the production issues and quality control standards that Renault would require for their future fleet.

It is also an advantage for Renault for further production in Iran, as IDRO’s subsidiaries, along with SAIPA and IKCO, has produced the L90 (second generation Logan) in Iran for a number of years with many of the parts usable in the Duster and Symbol models.

This would greatly reduce the time and cost of entry of the new vehicles.

The prices of Duster and Symbol models are also expect to fall to much more buyer friendly levels, as currently many would-be buyers are priced out of purchasing the vehicles due to their high import tariffs.

 A near-new Renault Duster is listed on secondhand car-buying website Bama.ir for 990 million rials ($28,000) that are “flipped” once it is imported by the original buyer and thus sold more expensively.

The new deal would counter the secondhand vehicle market and their high prices. It is estimated that the new price for the Duster should be below 700 million rials ($20,000) and if people are lucky it may even be below 600 million rials ($17,000).

For the Symbol—the small sedan vehicle being hailed as possible taxi fleet replacement in the next few years by Tehran’s taxi drivers—it could fall to 500 million rials $14,000) in the next few years.

However, these prices are just estimates, as neither IDRO nor Renault has released details on prices yet.

Other cars are also expected to make it to the factory floor in 2018-19, though neither company has given any further details yet on which ones they could be.

Nevertheless, on several occasions, Renault has said it intends to launch the Renault Kwid model in Iran due to its low-cost.

Highlight: A near new Renault Duster is listed on secondhand car-buying website Bama.ir for 990 million rials

 

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[screwball]

Yet, Minister of Economic Affairs and Finance Ali Tayebnia and CBI Governor Valiollah Seif have both announced that the time is getting ripe to make a radical change in the country’s currency regime. Citing Tayebnia, Mehr News Agency reported Aug. 10 that only a few steps need to be taken before the economy gets fully ready for the key decision. A few days later, Seif addressed an audience in Nepal of central bank chiefs of South East Asian countries, New Zealand and Australia, announcing that the Joint Comprehensive Plan of Action has already paved the ground for the implementation of the rial rate unification plan, which he said would “boost our exports and growth of the gross domestic product.”

Read more: http://www.al-monitor.com/pulse/originals/2016/08/iran-rial-dual-exchange-rate-regime-unification-cbi.html#ixzz4M6AcjRyM

[screwball]

This is very nice!

http://www.iesingapore.gov.sg/~/media/IE Singapore/Files/Events/iAdvisory Series/2016/Doing Business in Iran/4iESingaporeIranBankingStraitsBridge20160908.pdf

[screwball]

Iran and South Korea set to triple trade to $18 bn

By: dt news

 

, Posted on 02-May-2016

 

 

Tehran : Iran and South Korea have decided to triple their annual trade volume to $18 billion, President Hassan Rouhani announced on Monday after meeting his South Korean counterpart Park Geun-Hye.

"The two sides decided to increase by three times the current trade volume of around $6 billion (5.2 billion euros) to $18 billion," Rouhani said in a joint televised press conference.

"We also spoke about tourism, direct flights between Seoul and Tehran, and Korean investment in Iranian tourism infrastructure, including building hotels," he added.

Park is the first South Korean president to visit Iran since the two countries established diplomatic relations in 1962, and as Seoul seeks new markets to turn around a lengthy decline in export revenues.

Her three-day visit comes just months after a historic nuclear deal with world powers lifted sanctions crippling Iran's economy in exchange for limits on its nuclear programme.

Park, who is accompanied by several ministers and a 230-strong business delegation, will also be received by Iran's supreme leader Ayatollah Ali Khamenei.

The two countries have pledged to develop their relations in the energy sector.

"We will expand relations in energy projects and infrastructure... and in oil, gas, railways and ports," Park said.

Tehran hopes this month to increase its oil exports to Seoul to 400,000 barrels per day from a current 100,000 bpd, according to Oil Minister Bijan Zanganeh.

The two governments signed 19 cooperation documents in the presence of the presidents, and further memorandums of understanding were due to be signed by the private sector, Rouhani said.

Talks also included discussions about the situation on the divided Korean peninsula amid fears that Pyongyang is preparing to conduct a fifth nuclear test.

"The security of the Korean peninsula and security of the Middle East are very important to us," Rouhani said.

"We seek peace and stability in the Korean peninsula and categorically oppose building any weapons of mass destruction."

Park said she "explained South Korea's opinion on... nuclear disarmament of North Korea... and requested Iranian cooperation".

[screwball]

Minister: Iran, Airbus to Finalize Deal Soon 

News ID: 1203554 Service: Economy 

 October, 03, 2016 - 15:39 

TEHRAN (Tasnim) – Iran’s Minister of Road and Urban Development Abbas Akhoundi Iran will finalize a contract with French plane manufacturer Airbus for purchase of jetliners in the near future. 

Speaking to reporters on Monday, Akhoundi said his ministry and Airbus representatives held negotiations in Tehran last week following the US decision to remove a final hurdle for Western aircraft manufacturers to sell planes to Iran under contracts signed after coming into force of the Joint Comprehensive Plan of Action (JCPOA), a nuclear agreement between Tehran and the Group 5+1 (Russia, China, the US, Britain, France and Germany).

“The contract with Airbus will be finalized soon,” he added.

Akhoundi noted that talks with Boeing are also in progress with “positive attitude on part of both sides.”

While the Western plane makers are impatient to begin trade with Iran, Washington still demands that even non-American manufacturers wishing to sell to Iran obtain an export license if their products include materials made in the United States. Airbus, based in Europe, buys more than 40 percent of all its aircraft parts from the US.

During a visit to Paris in January by Iranian President Hassan Rouhani, Tehran signed the major contract with Airbus worth about $27 billion to buy 118 planes. 

Iran also sealed a deal in June worth around $25 billion with the US aerospace heavyweight, Boeing, for the purchase of 100 passenger planes.

[blueskyline]

It's seems every business deal Iraq has put together in 2 1/2 years . Iran has done in 7 months 

[pokerplayer]

12 hours ago, screwball said:

When does irans fiscal year start? October 1st? Hope iran also wants to get deal done before elections!

 

Got to agree SB ! I think elections will somehow throw a monkey wrench into the mix.

Not sure if I'm on the right track but what I see is the current global crunch has sent the worlds economy into a tailspin scrambling to balance budgets that had many unrealistic numbers.

Except for Iran. They were already use to sanctions for years and have adjusted there budgets accordingly to reflect there cash flow. Now that sanctions are off there is only one way for there economy to go and that is up !!! They now have, for lack of a better term, won the lottery. The years of sanctions have given them the time to stratagize and shape there economy for the day sanctions were lifted.

That day is now here. They are moving at a lightning pace that Iraq can only drool about.

Could be I'm out in left field but something says I'm not.

pp

[pokerplayer]

This was posted by Dinar Thug, not my find. Thought it could be relevant for us at cash out day.

pp

 

http://www.businessinsider.com.....&IR=T

These are the 14 countries with the safest banks in the world

With speculation rife that Deutsche Bank may be on the brink of collapse  under the weight of a massive fine from the US Department of Justice, the safety and security of financial institutions is once again under the spotlight.

As a result, we decided to take a look into the countries around the world with the safest banks, using the World Economic Forum's recently-released Global Competitiveness Survey, which offers a bundle of indicators to show the health of a country's institutions.

One of those is the perceived safeness of banks.

WEF used its executive opinion survey to ask "in general, how do you perceive the soundness of banks?"

So the measure isn't based on any objective economic or accounting measure, but rather by the perceptions of the population. The countries are ranked from 1 (banks need more money) to 7 (banks are generally sound).

The survey showed that people in the UK and US really don’t trust their banking systems after the 2008 financial crisis. The UK was ranked 62nd and the US came in at 36th, below Guatemala, Colombia, and Honduras.

Check out the countries with the safest banks below.

14. Czech Republic — The Czech banking sector is unusual in that foreign-owned lenders dominate the industry, but consumers don't seem to mind, ranking them the 14th safest in the world.

 

13. Guatemala — The densely populated Central American nation of 15.5 million people has three key players in its banking system — Banco Industrial, Banco G&T Continental, and Banco de Desarrollo Rural. All three are seen as being fairly sound, according to the WEF's survey.

 

12. Luxembourg — It's no surprise Luxembourg scores highly, as the country is famous for its financial sector. Its Banque et Caisse d’Épargne de l’État is often cited as one of the safest on earth.

 

11. Panama — As the country has no central bank, Panamanian lenders are run conservatively, with capital ratios almost twice the required minimum on average. Traditionally seen as a tax haven, the country has made substantial strides to shake off that reputation since the financial crisis.

 

10. Sweden — Although Swedish lenders are being squeezed by the Riksbank's negative interest rate policy, Swedish banks are still among the safest in the world, according to the WEF.

 

9. Chile — In July, ratings agency Fitch cut the outlook of the country's banking system to negative, based on "weakening asset quality and profitability," but that hasn't spooked Chileans, according to the WEF.

 

8. Singapore — Singapore is renowned as one of the world's great financial centres, and the soundness of its banking sector reflects that.

 

7. Norway — As an oil-reliant economy, Norway has faced serious issues in recent years, and in August, its banking system had its outlook cut to negative by Moody's. However, the country's banks remain very sound, the WEF's survey suggests.

 

6. Hong Kong — Another global financial centre, Hong Kong is home to arms of most of the world's biggest banks, and some of the world's safest financial institutions.

 

5. Australia — A small group of four major banks divide up most of Australia's banking sector, while foreign banks are tightly regulated, making sure the system is sturdy.

 

4. New Zealand — New Zealand's banking sector is dominated by a group of five financial players. Decent profits and growth without too much competition has seen the sector thrive, although it slips from second last year to fourth in 2016.

 

3. Canada — Canadian banks have long been a byword for stability. The country has had only two small regional bank failures in almost 100 years, and had zero failures during the Great Depression of the 1930s. Last year, the country's banks were seen as the safest on earth, so confidence has clearly slipped a little.

2. South Africa — South Africa's so-called 'Big Four' — Standard Bank, FirstRand Bank, Nedbank, and Barclays Africa — dominate the country's consumer sector, and are widely seen to be pretty safe, with only one other nation scoring higher.

 

1. Finland — Finland's banking sector is dominated by co-operative and savings banks, which take little risk. The country's central bank governor, Erkki Liikanen, below, has led the way on proposals to split investment banking and deposit-taking activities at European lenders. Ranked fourth in 2015's list, Finland's banks have got even safer this year.

[climber7]

Couple issues I'd like your opinions on please...

 Earlier today I stumbled on a random post somewhere in this thread with one of our members saying that we need to have pre-sanction rials (pre 2011?) to be able to cash in. Is that true and if so where can we get those earlier rials? 

Also,  I had purchased some currency through the company Buy New Dinar and when I called the number for them today to talk to them--the number has been disconnected. Was this just another scam company? Anyone have any suggestions for a legitimate Currency company I could contact? 

Edited October 4, 2016 by climber7

[Freedomwish]

54 minutes ago, climber7 said:

Couple issues I'd like your opinions on please...

 Earlier today I stumbled on a random post somewhere in this thread with one of our members saying that we need to have pre-sanction rials (pre 2011?) to be able to cash in. Is that true and if so where can we get those earlier rials? 

Also,  I had purchased some currency through the company Buy New Dinar and when I called the number for them today to talk to them--the number has been disconnected. Was this just another scam company? Anyone have any suggestions for a legitimate Currency company I could contact? 

If I may say but up to you, I wouldn't be too concerned anymore regarding Rials purchased pre-sanctioned at any date at this time....because once the gates opens you'll have a choice to travel outside.....like me going to Dubai lol  but hey, I'm no expert just wanted to chime in.

Check out Currency Liquidator, they're supply's been running low I'm not sure if they have much left.....

Best of luck!! 

Edited October 4, 2016 by Freedomwish

[Freedomwish]

Canada at number 3?!  Just the place to visit indeed!!  Thanks PP!! 

[screwball]

1 hour ago, climber7 said:

Couple issues I'd like your opinions on please...

 Earlier today I stumbled on a random post somewhere in this thread with one of our members saying that we need to have pre-sanction rials (pre 2011?) to be able to cash in. Is that true and if so where can we get those earlier rials? 

Also,  I had purchased some currency through the company Buy New Dinar and when I called the number for them today to talk to them--the number has been disconnected. Was this just another scam company? Anyone have any suggestions for a legitimate Currency company I could contact? 

I have bought a lot through buynewdinar.....so not sure what's going on with the number but they have always delievered exceptionally quick. Try another. As for pre sanction? Currency is currency! Should not be concerned at this stage, only my view, happy for others to chime in.

[screwball]

6 hours ago, pokerplayer said:

 

Got to agree SB ! I think elections will somehow throw a monkey wrench into the mix.

Not sure if I'm on the right track but what I see is the current global crunch has sent the worlds economy into a tailspin scrambling to balance budgets that had many unrealistic numbers.

Except for Iran. They were already use to sanctions for years and have adjusted there budgets accordingly to reflect there cash flow. Now that sanctions are off there is only one way for there economy to go and that is up !!! They now have, for lack of a better term, won the lottery. The years of sanctions have given them the time to stratagize and shape there economy for the day sanctions were lifted.

That day is now here. They are moving at a lightning pace that Iraq can only drool about.

Could be I'm out in left field but something says I'm not.

pp

Totally agree..

[jaman]

On 10/2/2016 at 5:51 AM, screwball said:

And this is why they have to move on their rate! Inflation rate will raise with expenditure!

this is why I think it will be more than.30 too many investor 

[screwball]

23 minutes ago, jaman said:

this is why I think it will be more than.30 too many investor 

Always possible....and a possibility we would all be happy with! 

[screwball]

“Iranians feel that they’ve missed out on a big, big party because of sanctions,” Francisco Blanch, head of commodities research at Bank of America Merrill Lynch, said in an interview. “Sanctions basically took a lot of production out at a time when oil prices were very, very high. Iran doesn’t really have to cut production, and it’s going to get a higher price.”

The prospect of higher oil -- benchmark prices in London traded at a three-month high above $50 a barrel on Monday -- coupled with increased investment in the energy industry will also be a boost to Rouhani, who faces a reelection battle next year when he must convince voters that rapprochement with the West is paying off economically. Brent crude rose 0.4 percent to $51.10 a barrel at 3:02 p.m. in London.

[screwball]

Missed out big time for years! 

[screwball]

Only way to convince voters is make the promise of a single forex rate and economic boom a reality! He did promised to do it before the elections! It's all bluster until that happens!

[screwball]

“We’d like to see an end to the creeping protectionism in the world and more progress on moving ahead with free-trade agreements and other trade-creating measures,” Maurice Obstfeld, director of the IMF’s research department, said in a Bloomberg Television interview with Tom Keene.

 

Lagarde said last week that policy makers attending the Oct. 7-9 annual meeting of the IMF and World Bank have two tasks. First, do no harm, which above all means resisting the temptation to throw up protectionist barriers to trade. And second, take action to boost lackluster global growth and make it more inclusive.

free trade means tradeable currencies! 

[screwball]

http://www.bloomberg.com/news/articles/2016-10-04/existential-threat-to-world-order-confronts-elite-at-imf-meeting

[screwball]

Financial tribune website is down....slow news day

[screwball]

Single Currency Rate in 2017-18 Budget | Financial Tribune

financialtribune.com › articles › single-c...

6 hours ago - Iran's national budget for 2017- 18 will be prepared based on unified exchange rates, ... Wednesday, October 05, 2016 ...

[screwball]

Sorry can't open it website is down

[screwball]

Funny article comes out about single rate and beget and website is down