Iran

Leaders call for use of alternative currency among Muslim countries against US Dollar

At the ongoing Kuala Lumpur Summit 2019, leaders of the Muslim world have pressed for alternative currency for use in trade and seek independence from US Dollar. Turkish President Recep Tayyip Erdogan said Muslim countries should try to create new transaction systems. He added that Islamic finance needs to be part of the agenda just like in Malaysia. Meanwhile, Iran's President Hassan Rouhani was of the view that Muslim nations should come up with a new own cryptocurrency. Malaysia's Prime Minister Tun Dr Mahathir Mohamad also believes that a united cryptocurrency is needed for Muslim states, as a cryptocurrency can cut through bureaucratic and market fluctuations. He added that utilising cryptocurrency or national currency would help attain independence from over-reliance on the US dollar.

Patterns of light and colour that bear endless repeating

The Monir Museum in Tehran is displaying the work of Monir Sahroudy Farmanfarmaian, first for a female artist in the country. She saw many of her works confiscated and destroyed following the Islamic Revolution in Iran in 1979, so she emigrated to New York. In 2004 she returned and felt able to reopen her studio and workshop in Tehran. Geometric patterning is part and parcel of Monir’s visual language. Her work synthesises traditional Islamic art and design and Western geometric abstraction.

Bank Pasargad of #Iran to Open Branch in #India: Report

India has reportedly approved a proposal from Bank Pasargad of Iran to open a branch in Mumbai. The Federation of Indian Export Organizations had earlier objected the entry of Iranian banks into India. In the wake of new US sanctions, India may explore the possibility of reviving the rupee-rial arrangement to import oil from Iran that it has used in the past. The presence of an Iranian bank in India will ensure the smooth flow of funds between the two countries. US President Donald Trump announced on May 8 that Washington was walking away from the nuclear agreement between Iran and the UN Security Council. Trump also said he would reinstate US nuclear sanctions on Iran and impose economic bans on the Islamic Republic.

Banking #Merger Imminent

The planned merger of three Iranian lenders will take place in the coming days. The three banks are: Mehr Eqtesad Bank, Samen Credit Institution, and Ansar Bank. Samen and Mehr Eqtesad are currently branded by the Central Bank of Iran (CBI) as "awaiting license". Farshad Heydari, CBI’s deputy for supervision, had already announced in March that Mehr Eqtesad and Samen would be acquired by Ansar Bank. The planned consolidation would be a watershed event in reducing the influence of shadow banks and making the Iranian banking system more efficient.

Munich Re reinsures life portfolio for Iranian insurer Mellat

German reinsurer Munich Re has entered into an agreement with Iranian insurer Mellat Insurance and will cover Mellat's entire life insurance portfolio. For smaller insurers operating in emerging economies it is vital to have access to reinsurance capacity, in order to offset the risks they are assuming and maintain solvency strength. Iran’s Saman Insurance became the first insurer in the country to purchase life reinsurance from a foreign player after the removal of international sanctions in 2016, signing a deal with Munich Re in 2017.

Will #Iran’s banking sector collapse?

Financial experts are warning that Iran’s banking sector is at risk of a collapse due to toxic assets. It is no secret that over the past decade all Iranian banks were negatively affected by sanctions, internal mismanagement and corruption. Another disturbing factor in the financial sector has been the presence of unlicensed financial institutions. Government interference has led to the accumulation of tens of billions of dollars of bad debts that will continue to put pressure on the balance sheets of Iranian banks for some time to come. Besides the high ratio of nonperforming loans, Iranian banks have a high portion of overvalued and illiquid assets on their balance sheets that need to be adjusted. Now several Iranian banks are following government instructions and have started to sell their noncore assets. The Central Bank of Iran (CBI) will have no choice but to push for bank mergers and also to impose and implement tough regulations on the country’s banks in order to prevent a deeper crisis.

Coincidental documents reveal Iranian Guard smuggled billions via Bahraini bank

Iranian owners of a Bahraini bank complained about Bahrain to an international arbitration court in the Netherlands. Bahrain responded with documents proving that $7 billion was smuggled through suspicious accounts with the consent and knowledge of the bank’s management. Future Bank was closed in 2015, but documents prove Iran’s secret assistance in evading international sanctions and smuggling billions of dollars over more than a decade. Bahraini officials criticized Future Bank for allowing the cleric Isa Qassim to make cash deposits totaling millions of dollars over several years, and directing some of the money to a charity linked to terrorism. Audits revealed then that in hundreds of cases, bank transfers were accompanied by specific instructions to avoid references to Iran or Iranian banking codes.

New Form of Islamic Bond Makes Debut at Iran Fara Bourse

The Iranian government issued 30 trillion rials (about $670 million) worth of Manfa’ah sukuk at the over-the-counter exchange Iran Fara Bourse. The 42-month bonds, bearing a maximum of 20.1% annual interest, will be backed by 51 trillion rials ($1.13 billion) of government revenues. Each Manfa’ah sukuk is priced at 1 million rials ($22.2).

#Iran developing national #cryptocurrency to bypass US sanctions

Iran has revealed that one of the country’s banks is working on a state-backed virtual currency. Minister of Information and Communications Technology Mohammad-Javad Azari Jahromi tweeted he had proposed to implement the country’s first cloud-based digital currency. Iran is still mostly cut off from major international payment networks such as Visa and Mastercard and services such as PayPal. The announcement on its crypto project follows Venezuela’s launch of the world’s first national digital currency the 'petro'. According to President Nicolas Maduro, the oil-backed cryptocurrency has raised the equivalent of more than $735 million. After the successful pre-sale of the petro last week, Maduro announced a new virtual token, dubbed 'petro oro', which will be backed by precious metals.

#Iran May Follow #Venezuela In Launching Its Own Cryptocurrency

Iran has announced its intent to establish a national cryptocurrency. Mohammad-Javad Azari Jahromi, head of Iran's Ministry of Information and Communications Technology, posted in a Tweet that a test model for a cloud-based digital currency is being developed. The announcement comes after Venezuela's oil-backed "petro" cryptocurrency launch earlier this week. Venezuelan President Nicolas Maduro claims that the cryptocurrency has raised over $700 million. There are fears that the rise of state-backed cryptocurrencies could challenge international efforts to regulate financial transactions and impose sanctions. The three countries most interested in the technology, Iran, Venezuela and Russia, are all targeted by U.S. sanctions.

What Does Responsible Finance Have To Do With What Is Happening in #Iran?

In Iran more than a dozen people have been killed and thousands have been arrested in demonstrations over the last few weeks. Massive numbers of Iranians say their savings have been lost because of the collapse of poorly regulated or fraudulent institutions. According to Suzanne Maloney of the Brookings Institution, banks are shutting down without any kind of notice. The Iranian President’s recent budget proposal decreases subsidies to the poor at a time when the spending power of Iranians is also declining. Not being able to meet day-to-day expenses, respond to emergencies or take advantage of opportunities are a significant source of stress. The client protection principles, Smart Certification and the tools developed by the Smart Campaign offer resources for stakeholders in any country. They can ensure responsible treatment of clients and thus long-term sustainability. Iran's case shows the importance of quality financial products as a part of broader financial, economic, and social development.

#Iran Seven-Year #Sukuk #Issuance at $3.7b

Seven years ago the Law of Developing Financial Instruments and Entities was passed in the parliament. Since then, more than $ 3.76 billion worth of Islamic sukuk have been issued in the Iranian capital market according to the chief executive of the Capital Market Central Asset Management Company.
"From the fiscal 2010-11 up to the end of the ninth month of the current fiscal year, 47 kinds of sukuk worth more than 157 trillion rials have been released in the capital market, 17 of which worth $ 311.7 million have come to maturity," Gholamreza Abutorabi was also quoted as saying by the official website of the company: "The amount of installments and the original amount of these matured bonds have been reimbursed".
According to the CEO, 30 kinds of active sukuk worth $ 3.5 billion are currently in use and are being traded, whereas two other kinds worth a total of $ 89.9 million belonging to two companies will come to maturity. From the beginning of the current fiscal year on March 20 until now, more than $ 407.6 million worth of installments pertaining to various kinds of sukuk have been received by intermediary financial companies.

#Iranian Private Banks Secure #Qatar Foothold

Several major Iranian private lenders have recently established correspondent relations with Qatar National Bank (QNB). Kourosh Parvizian, CEO of Parsian Bank, said these banks opened accounts with QNB and are prepared to offer financial services to Iranian and Qatari businesses. QNB governor Sheikh Abdullah Saoud Al-Thani said Qatari lenders will make efforts to remove trade obstacles quickly. The Iranian delegation in Doha held a meeting with officials from QNB, Al Rayan Bank and Al Khaliji Bank. They discussed using local currencies in bilateral trade and taking speedy measures to ease trade between the two countries. Bank Melli Iran is also holding talks with one of the largest banks in Qatar for establishing correspondent ties.

Iran Gov’t to Issue #Sukuk Worth $6b Next Year

The Irani government will issue 260 trillion rials ($6 billion) worth of sukuk in the next fiscal year, starting March 21, 2018. Proceeds will be used to fund the government's incomplete projects. Managing Director of Central Securities Depository, Gholamreza Aboutorabi, said the projected debt issuance was 30% higher compared to what was forecast for the current year.

Iranian Banks’ Incomes, Expenses Projected for 2018-19

The total projected income of eight Iranian state-owned banks has been put at 845.2 trillion rials ($20.09 billion) for the fiscal 2018-19. These banks include Bank Melli Iran, Bank Sepah, Bank Keshavarzi (AgriBank), Bank of Industry and Mine, Export Development Bank of Iran, Post Bank of Iran, Tose'e Ta'avon Bank (Cooperatives Development Bank) and Bank Maskan. The expenses of these banks have been predicted to match their incomes at 820.2 trillion rials ($19.49 billion). President Rouhani submitted the budget on Sunday for the next fiscal year that begins on March 21, 2018. The bill also cements the authority held by the Ministry of Economic Affairs and Finance to issue official guarantees. All projects belonging to the private sector, cooperatives and non-government public entities that meet the criteria will be able to employ foreign funds.

#Iran’s debt market emerges as key to economic future

The rising issuance of sukuk and Treasury bills in the past three years in Iran is seen as evidence of the success and allure of the Iranian debt market. Perhaps the most important factor contributing to the sales of bonds has been the lack of funds to private contractors and creditors. The Iranian government's budget for the public sector is allowed to issue a significant amount of debt securities. Although this helps state-run organizations sponsor infrastructure projects, it might bring about risk of default for future governments. An analysis of budget figures shows that the government is always forced to settle the past matured securities with the issuance of new ones. Government commitments are accumulated and rolled over to later years. The administration is due to pay its outstanding debt obligations, totaling $7 billion and can issue about $10 billion worth of sukuk.

Interview: Bank Melli #Iran Upbeat on Int’l #Expansion

According to Mohammad Reza Hosseinzadeh, CEO of Bank Melli Iran (BMI), the European Union has made its decision to work with Iran. The banker noted that BMI has managed to establish correspondent banking relations with 135 banks of 30 countries, half of them European. What is more, Bank Melli and its branches in Hamburg and Paris have connected to TARGET 2, the Eurozone's real-time transfer system. In terms of expansion, Hosseinzadeh said negotiations are well underway with one of the biggest banks of the Persian Gulf state for BMI to establish a branch there, but refused to name the bank. BMI is also on course to open a branch in Pakistan, most likely during the next fiscal year, starting March 21, 2018.

Iranian Banks, #Fintechs Shine in #Iran Transaction #Exhibition

Banks, fintechs, financial solution vendors and startups were present in full force at the Third Iran Transaction Exhibition (ITE). The exhibition was inaugurated by Mohammad Morad Bayat, chief executive of FABA, a government-owned center for promotion of electronic banking. He said that 56 startup companies have taken part in this year’s event and that fintechs are not banks' enemies, as the future will be one of cooperation between the two. The Iranian Parliament also had a representative in the exhibition, who said the government has assigned a whole chapter specifically to electronic banking. Various payment systems, banking solutions, real-estate financial services and insurance facilitators were showcased at the exhibition.

An #Iranian Bank Has Invested over 26 million Dollars on #Startups

Iranian banks have decided to get more engaged with the country’s startup scene. According to Alireza Daliri, Deputy Director of Iran’s Vice-Presidency for Science and Technology, Bank Melli Iran has invested around over 26 million dollars in the country’s startup market. Daliri added that the Vice-Presidency had offered the banks to either establish their own accelerators or invest on large successful and on-going projects. Eventually, the banks decided to go with the latter. Daliri added that the Vice-Presidency has started negotiations with a number of Iranian banks such as Saderat, Sepah, Export Development Bank, Tourism Bank, Post Bank and Refah, but it is difficult to persuade them. Iran’s startup scene has witnessed exponential growth in the recent years. The number of knowledge-based firms in the country has increased from 52 in March 2014 to 2732 until October 2016, but lack of funding is still a major issue.

Central Bank of #Iran Assigns #Sukuk Trading to Capital Market

The Central Bank of Iran has stepped in and put a stop to the trading of the so-called Sakhab bonds. Sakhab is one of the many types of debt securities issued by the Irani government meant to clear its debts to contractors. It matures in a year and is priced at 1 million rials ($26.1) per bond. It could only be traded in certain branches of Bank Melli Iran. The new Minister of Economic Affairs and Finance, Masoud Karbasian, vowed to stand against the issuance of any bond issued by the government outside the capital market. The government issued 120 trillion rials ($3.13 billion) of Sakhab bonds late March and handed over the secondary trading to the banks. The opaque condition of secondary trading prompted the growth of a black market. Market experts have long raised concerns about a deepening gap between the equity and debt markets and further channeling capital toward low-risk, high-return bonds.

Syndicate content