Page 6 - Financial Tribune No 638

World Currencies LATEST NEWS Parsian Parsian Bank has finalized plans to launch 137 new branches across the country, said statements during a ceremony marking the 12th anniversary of Parsian Bank on Sunday.
Expanding Kourosh Parvizian, the bank’s chief executive, noting that his bank currently has 313 Increasing the bank’s capital is in line with plans to help strengthen the lender’s balance
Currency Pair Value Change Branches branches. The banker also announced that it has won the Securities and Exchange sheets in line with international standards. However, the bank’s initiative in launching new
Organization’s approval for lifting its capital assets to 50 trillion rials ($ 1.5 billion), which is branches comes at a time when other lenders are downsizing in response to the growth in
6 set to be implemented in the next two months, Poolnews reported. Parvizian made the e-banking services in recent years.

EUR-USD 1.0664 0.0003(0.03%) DECEMBER 5, 2016

GBP-USD 1.2729 0.0138(1.10%)

USD-JPY 113.5100 -0.5900(0.52%)

AUD-USD 0.7457 0.0042(0.57%)

USD-CAD 1.3292 -0.0027(0.20%) www.financialtribune.com/economy IRANIAN ECONOMIC DAILY

USD-CHF 1.0111 0.0005(0.05%)

EUR-GBP 0.8390 -0.0078(0.92%)

EUR-JPY 121.0800 -0.5600(0.46%) New Forex Directive to Give
Banks More Latitude
Foreign Exchange Rates

Currency IRR Market IRR Official

US Dollar (USD) 39,100(490) 32,087

Euro (EUR) 42,280(+74) 34,230 The remittance fee required
by brokers for transferring
British Pound (GBP) 49,650(+970) 40,836 money, return on foreign
investment and the credit
100 Japanese Yen (JPY) 35,000(0) 28,262 needed for project finance
are among issues that will be
Emirati Dirham (AED) 11,050(+210) 8,736 covered by the new directive

Turkish Lira (TRY) 11,690(+90) 9,105

Chinese Yuan (CNY) 5,900(+140) 4,660

Canadian Dollar (CAD) 30,410(+170) 24,140

Australian Dollar (AUD) 30,500(+250) 23,929

Swiss Franc (CHF) 39,080(+330) 31,748 The Central Bank of Iran will issue a new foreign
exchange directive in the foreseeable future in line
Iranian Gold Coins with its new forex policies, the bank’s governor said.
“Meeting currency demand for the import of goods
Denomination Price (IRR) Change and services, supplying currency to reimburse installments of
foreign exchange loans from the resources of the agent bank
Bahar Azadi 11,200,000 50,000(0.45%) and helping customers obtain foreign exchange loans are
among the points addressed by the new directive,” Valiollah
Emami 11,362.000 46,000(0.41%) Seif was quoted as saying by CBI’s official website.

Half Azadi 5,990,000 90,000(1.53%) According to Seif, the new directive will be issued in the near
future.
Quarter Azadi 3,140,000 40,000(1.29%)
“The remittance fee required by brokers for transferring
Libor money, return on foreign investment and the credit needed for
project finance are among other issues that will be covered in
Borrowing Latest Week 52-WK 52-WK Low the new directive,” he added.
period Ago High
0.12950 The official says the central bank is fully ready to make up The Central Bank of Iran aims to tackle the foreign exchange deficit of banks.
0.68465 for the hard currency shortage faced by the banks.
Overnight 0.43422 0.43422 0.43733 1.01120 messaging app Telegram to address the issue, saying “as banking network. “The banks will be able to generate good
-0.41000 “The CBI aims to tackle the foreign exchange deficit of the economic facts do not support the recent fluctuations in the profit by shoring up their forex operations and decrease the
6 Month 1.29100 1.28878 1.29267 0.22375 banks and in order for this process to take place, the banks are currency market, the nature of these swings is not telling of operational risk of businesses while making their clients’
-0.15229 free to open letters of credit and operate at open market forex lasting effects”. payments and forex dealings safer,” he said.
1 Year 1.64344 1.64344 1.64511 rates with CBI support,” he said.
On Sunday, the US dollar reached its highest rate against Seif, who is also the head of the Money and Credit Council,
Euro Overnight -0.41000 -0.41000 -0.18929 Seif then commented on the recent fluctuations in US dollar the rial in the past four years and was traded for 39,600 rials emphasized that Iranian banks must immediately move to
parity rate in the Iranian market, saying they have been mostly before losing some ground later in the day. accelerate their banking services, adding that forex operations
Pound Overnight 0.22625 0.22875 0.48500 caused by periodic changes. done with the aim of improving production and attracting foreign
Noting that the banks can now purchase foreign exchange investments can prove “very effective” in realizing the goals
Yen Spot/Next -0.06029 -0.07157 0.04857 “Forex swings take place periodically at this time of the year, incomes generated from the export of non-oil goods and set by Leader of the Islamic Revolution Ayatollah Seyyed Ali
as it had in previous years,” he said. “Another major reason for services from individuals and companies at market rates, Khamenei in the framework of Resistance Economy principles.
it could be the handling of forex operations related to foreign Seif expounded on the benefits of CBI’s new directives for the
trade by moneychangers instead of banks–something that
emerged during the sanctions era.”

A few days ago, the CBI governor had taken to the social

Interest Rates

*** Yield 1 Day 1 Month 1 Year

United States Government Treasuries +13 ERGO Group Seeking Iran Access NZ Favors Pickup in Iran Banking Ties
+16
6 month 0.61% - +10 +11
+5
2 year 1.10% - +31 ERGO Group, one of the largest insurance foreigners but we want them to invest in the New Zealand Trade Minister Todd McClay Iran and NZECO signed a memorandum of
-53 groups in Europe, is keen on entering Iran’s industry,” he said in comments to the opening emphasized the development of business understanding to cooperate in co-insurance,
10 year 2.38% - +61 -70 insurance market, Alexander Ankel, chief ceremony of the conference on Saturday. and banking relations with Iran following reinsurance, credit assessment, claims
-54 operating officer of ERGO International, the lifting of sanctions in January, saying prevention and recovery of debts that help
30 year 3.06% - +50 -59 told the 23rd International Conference on “So far, foreigners’ presence has been his presence in Iran shows how much his exporters of both countries.
Insurance and Development in Tehran on limited to liaison offices. CII should take the country is eager to speed things up.
United Kingdom Government Gilts -44 Saturday. necessary measure needed for establishment The MoU was signed by New Zealand’s
-41 of foreign insurers’ branches in Iran and “New Zealand has the highest volume of Foreign Minister Murray McCully and his
2 year 0.10% -4 -5 -40 “Several new insurance companies have supervision of their operations.” trade in the Middle East with Iran and when Iranian counterpart Mohammad Javad Zarif
5 year -55 been established in Iran in recent years, which the Iranian foreign minister travelled to New during his trip to Wellington.
10 year 0.57% -8 +9 indicate [the Iranian] market’s high potentials,” Tayyebnia noted that the Industry’s top Zealand, the capacity of business dealings
30 year -16 IRNA quoted Ankel as saying. regulator should also ease the conditions for between the two countries was estimated Noting that he wishes for these meetings
1.38% -12 +25 -15 foreigners interested in investing in the Iranian to reach $1 billion,” McClay was quoted as to help accelerate bilateral ties, McClay
-30 “We are aware that Iran has managed market. The economy minister also announced saying by the official website of the Central pointed out that this is New Zealand’s first
2.01% -11 +22 -82 to considerably increase the insurance that the VAT Removal Bill will be sent to the Bank of Iran. trade mission to Tehran in 12 years.
penetration rate to 2%, despite the hardships parliament next month. If approved, the bill will
German Government Bunds -28 caused by sanctions against the country,” he exempt the insurance industry from taxes. “To reach this level of cooperation, business The day before, the Iran Chamber of
+25 added. and banking ties between the two countries Commerce, Industries, Mines and Agriculture
2 year -0.76% -1 -10 +8 Reuters reported last month that western must pick up and a good understanding must hosted McClay and his delegation, which
-19 Established in 1997, EGRO operates in insurers are slowly reaching deals with Iran, form between the corresponding business consists of 30 representatives from economic
5 year -0.43% -4 +0 -41 over 30 countries, especially in Europe and as they seek to reenter the multibillion dollar sectors,” added the minister in a meeting with sectors, including agriculture, food, new
+120 Asia. In Europe, ERGO claims to be number market. This is while the pace of business is Central Bank of Iran Governor Valiollah Seif. energies and tourism.
10 year 0.28% -9 +15 -165 one in the health and legal expenses insurance hampered by banking restrictions 11 months
segments, and is among the market leaders in on from the lifting of international sanctions. The Kiwi minister said he had relayed to McClay also pointed to the history of links
30 year 0.94% -10 +22 +4 its home market of Germany. New Zeeland banks the upside of working between Iran and his country, noting that the
+108 Insurers and reinsurers from the UK, with Iran in the post-sanctions era. New Zealand Embassy was established in
Japanese Government Bonds -323 Munich Re owns 99.96% of ERGO’s Germany, France and Japan have reportedly Iran in 1975, which makes Iran the oldest
shares. Earlier this month, the major reinsurer held talks with CII over entering Iranian market According to the South Pacific country’s country in the Middle East to have formal
2 year -0.19% 0 +8 -9 expressed interest in returning to Iran, during in the post-sanctions era. trade minister, Iran is now among countries relations with New Zealand.
-- a meeting with Iranian top officials in Germany. officially dealing with the New Zealand Export
5 year -0.11% -1 +10 -9 Credit Office. Todd McClay (L) and Governor of the
-7 Iranian insurance firms reportedly held Central Bank of Iran Valiollah Seif
10 year -0.02% +0 +10 -151 meetings with 40 insurers from Germany, the “The NZECO has now included Iran
UK, France and Azerbaijan Republic on the among the countries it officially does
30 year 0.58% 0 +10 sidelines of the event. business with and that is telling of the
commitment of the New Zealand government
10-Year Government Bond Yields According to Iranian Insurers Syndicate, to expand ties with Iran,” he said.
38 well-known foreign experts also made
Europe speeches during the conference. “After the suspension of the sanctions,
there are now many opportunities to
France 0.71% -9 +26 reestablish business ties and many
possibilities have been created in the fields
Italy 1.90% -15 +15 of education, construction, food, energy,
forestry, production and services.”
Switzerland -0.19% -4 +22
At the beginning of the current fiscal year
Spain 1.54% -7 +27 in March, the Export Guarantee Fund of

Netherlands 0.42% -10 +17 Gov’t Stance
Economy Minister Ali Tayyebnia also
Portugal 3.65% -9 +40 called on the Central Insurance of Iran and
Iran Insurers Syndicate to clear the path for
Greece 6.38% -2 -125 foreigners’ partnership and investment.
“We are not trying to transfer risks to
Americas COO of ERGO International
Alexander Ankel add the conference
Canada 1.61% -6 +46

Mexico 7.33% +3 +104

Brazil 12.31% +7 +84 Greenback at Four-Year High

Asia

Australia 2.86% +8 +53 1 Elaborating on reasons behind the currency market “Policymakers and experts should be more cautious about
The CBI and the government have also been accused of fluctuations, Kourosh Parvizian, CEO of Parsian Bank and the what they say, since they might disrupt the forex market,” he
Hong Kong 1.36% +8 +50 increasing forex rates, mainly to compensate for the budget head of the Association of Private Banks, said the dollar’s bull said.
deficit, which claims have been strongly rejected by both. run was mainly caused by growth in demand for the currency
Singapore 2.43% +10 +52 The government handed next year’s annual budget bill to “like for travelling to Iraq earlier this month [to attend religious The banker added that policymakers could regulate the
the parliament on Sunday, in which the rate for the US dollar is ceremonies there]”. rates by reforming the regulations. He provided no more details.
South Korea 2.25% +6 +55 set at 33,000 rials. The official exchange rate for dollar was set
at 32,087 rials, unchanged compared with the previous day’s Parvizian also criticized experts and economists for making Euro was traded at 41,900 rials on Sunday, up by 300
India 6.24% +3 -60 close. unrealistic comments about the market, “especially those who rials compared with Saturday’s close. The British pound
exert influence on the market”. exchanged hands at 49,400 rials up from the previous day’s
48,450 rials.