Iranian Rial Archives - Iran News Daily

Eliminating 4 zero from national currency not to impact inflation rate

reporter 1222 — Wed, 07 Aug 2019 07:30:47 +0000

He explained that removing four zeros will have no costs for the government since CBI annually prints about 700 million of new bank notes and replacing the old ones with the new ones is a routine procedure.

He said that removal of four zeros from national currency will for sure facilitate daily transactions but to get implemented the government’s ratified plan needs Parliament’s approval, as well.

On July 31, the government approved a plan to take four zeros off the national currency in a bid to curb the tide of liquidity and impede rial depreciation.

The plan to remove four zeros from the rial has been on the government agenda since it was proposed about seven month ago by Central Bank of Iran as part of a broader plan to revisit the monetary system.

According to the government website dolat.ir, the measure calls for fundamental change to the national currency, including changing the name of the monetary unit from the official rial to the popularly used ‘toman’. It stipulates change in the nominal value and the face of bank notes and coins.

Despite the fact that rial is the official currency, people use toman in informal transactions (1 toman = 10 rials).

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CBI manages to stabilize foreign currency market: report

reporter 1222 — Tue, 16 Jul 2019 05:30:04 +0000

According to the Governor of CBI Abdolnaser Hemmati, the foreign currency market is stabilized, ISNA reported.
The rial is strengthened about eight percent in the open market over the past month to 125,450 per dollar, according to prices compiled by Bloomberg from foreign-exchange websites and traders in Tehran.
The central bank sought ways to protect the currency with measures that include setting up a government-run foreign-exchange platform known as NIMA to quell the black market and controlling interest rates offered by lenders.
The advance is a relief for Iranians who watched the currency plummet more than 50 percent after U.S. President Donald Trump scrapped the 2015 nuclear accord and reimposed sanctions on the nation.
The rial on the open market is now close to the Nima rate, Hemmati said.
“The central bank’s policies of controlling currency markets and bank interest rates appear to be helping,” said Massoud Gholampour, an analyst at Novin Investment Bank in Tehran.
“Demand for foreign currency has dropped compared to last year,” he said, adding that bans on a raft of luxury imports helped as much as $2 billion from being spent on imports.
In early May, Hemmati outlined CBI plans for neutralizing or relieving the impact of U.S. sanctions on the country’s economy and mentioned providing liquidity and working capital to maintain and boost domestic production as one of those plans.
To find the best ways for supporting production, CBI has been regularly holding meetings with the representatives of private sector and also with the economists.
CBI’s plans take two major approaches, first is that they will lead to secure finance for production activities and provide the working capital needed for such activities; and the second one is that they will not be resulted in any deviation in the banking resources and also in higher inflation.
In this regard, the central bank’s committees of liquidity and credit have investigated several plans, that one of them is “Productive Finance Plan”, which will be implemented after being discussed with monetary and banking experts.

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Foreign currencies lose more value against Iranain rail

reporter 1222 — Tue, 21 May 2019 08:32:02 +0000

The value of each US dollar dropped to 137,0000 rial on Monday, while each US dollar was valued at more than 155,000 as early as last week. As the rial started to regain value at the end of last week, ordinary people poured to the market to sell their dollars in a bid to save their properties.

The more people and dollar dealers rushed to the market to sell their dollars for fear of losing more value of their properties, the more falling prices of foreign currencies gained momentum today.

Economic experts believe that the recovery of rial came after deescalation of recent tensions between Iran and the United States and the Central Bank of Iran increased its supplies of foreign currencies, especially the UAE’s dirham to the free and official market over the past few days.

The downfall of foreign currencies against rial is also largely attributed to the news of the launch of an integrated foreign currency market by the CBI as soon as this week. The integrated market is said to have aimed at bringing the prices in both the free market and the official market closer to each other in one single unified market and eliminating the illegal activities in the free market.

It is also worth mentioning that the US targeted the rial with a wave of illegal and unilateral sanctions recently. Earlier this month on May 2, the US administration decided not to extend the sanctions waivers on Iranian oil and later targeted Iran’s metal industry on May 8 with sanctions in an attempt to chock off Iran’s sources of income on the anniversary of its unilateral and unlawful withdrawal from Iran nuclear deal.

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Cabinet studying currency reconversion, lopping off 4 zeroes of nat. currency

reporter 1222 — Wed, 17 Apr 2019 10:20:31 +0000

According to this plan, the new currency, named Toman, which has been the unofficial currency used by the people, will be equal to 10,000 rials.

The decision aims to reduce the costs of printing coins and banknotes, make the monetary system more efficient and etc., and is expected to have a positive psychological impact in the short-run.

The Rouhani administration ratified the plan to shift the national currency from Rial to Toman earlier in December 2016. However, it was decided to postpone implementation of the plan at the time due to some reasons including the expressed concerns about the time unfitting economic conditions which would ignite inflation and economic instability.

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Lopping four zeros off rial to take about 2 years

reporter 1222 — Mon, 07 Jan 2019 09:35:06 +0000

Governor of the Central Bank of Iran (CBI) Abdolnaser Hemmati said on Mon. that removing four zeros off national currency ‘rial’ will take about two years.

The proposed bill for lopping four zeros off rial requires approval of both the government and the Parliament, he said, adding, “economic experts estimate that launching this task will take about two years to complete.”

This move will be taken in tandem with other basic measures taken by the Central Bank of Iran (CBI) for reforming banking system and applying modern tools of monetary policies as well as new methods of efficient supervision on activities and performance of the bank.

After legalization, new banknotes will gradually replace previously worn-out ones, he noted.

Reforming foreign exchange rate parity through lopping four zeros off national currency will enhance reputation and prestige of the national currency in the international arena, he said, adding, “such monetary modification is a move that is launched in many other countries and is an outset for serious economic reforms in the country.”

CBI Governor Hemmati expressed his hope that the bill would be approved both by government and the Parliament soon.

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Number of Iranian tourists visiting Turkey drops

reporter 1222 — Sat, 29 Dec 2018 11:23:56 +0000

The Ministry of Culture and Tourism of Turkey announced on Friday that the number of Iranian tourists visiting the country has dropped by 18.17 percent in January – November 2018, compared to same period last year.

In January-November 2018, 1.894 million Iranian tourists visited Turkey, which is 18.17 percent less than in the same period of 2017, the Ministry told Trend on Friday.

The share of Iranian citizens in the total number of foreigners who visited Turkey during the eleven months of 2018 was 5.05 percent, the ministry said.

In November 2018, 105,200 tourists from Iran visited Turkey, which is 46.39 percent less than in the same month of 2017, the ministry noted.

“The share of Iranian citizens in the total number of foreigners who visited Turkey in November 2018 accounted to 5.35 percent. For comparison, this figure was 11.88 percent in November 2017,” the ministry added.

In January-November 2018, 37.5 million tourists visited Turkey, which is 22.25 percent more than in January-November 2017, the ministry noted.

The main reason behind the significant drop in the number of Iranian tourists visiting Turkey is Rial depreciation in the country which happened in the summer as a result of US withdrawal from the Iran nuclear deal. The increasing rate of foreign currencies automatically led to a significant increase in the prices of plane tickets and accommodation.

On the other hand, the fall in Iran’s national currency value has attracted a new wave of visitors from neighboring countries, particularly Iraq. According to recent figures, the arrival of foreign tourists to Iran has had a 45% increase in a five-month period compared to last year.

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New Delhi trying to start rupee-rial operations for Chabahar Port

reporter 1222 — Sat, 20 Oct 2018 10:50:54 +0000

India’s Shipping Secretary Gopal Krishna said the country is weighing a rupee-rial payment mechanism for the Chabahar project in Iran as it weaves a way around the US’s impending sanctions against Iran from Nov. 4, to kickstart the port that is considered critical to the country’s geopolitical and trade interests.

According to The Hindu BusinessLine, Krishna said, “we are trying for a rupee-riyal payment mechanism for Chabahar port project.”

“Basically, the guarantees will have to be given in rupees now instead of in dollars or euros,” he added.

The issue was discussed with a high-level delegation led by Mohammad Rastad, Deputy Minister and Managing Director for Ports and Maritime Organization, Islamic Republic of Iran, during a visit to India earlier this week. The plan to set up an alternative payment mechanism reveals that India is willing to go ahead with the project even if the diplomatic lobbying for a waiver from the US on Chabahar port project fails to yield results.

India’s bid to start commercial operations at the port has been held up due to banking challenges arising from the fresh round of sanctions imposed by the US.

India has picked Bandar Abbas-based Kaveh Port and Marine Services company to run the port as a stop-gap arrangement for 18 months till a full-fledged manage, operate and maintain (MOM) contractor is finalized by India Ports Global Pvt Ltd.

“Kaveh Port and Marine Services will start operations on our behalf and we should be ready to make payments to them. But, at present, due to banking difficulties we are not ready. There are banking issues on how to transfer funds and so it is on hold,” a government official said.

“A rupee-rial payment mechanism is the only way out of this,” said Arun Kumar Gupta, Managing Director, India Ports Global. “That is what we are working on. Instead of dollars or euros, all payments to the Iranian side will be under rupee-rial mechanism,” he said adding that a team from India Ports Global will visit Iran in the next few days to “work out things”.

“Irrespective of the sanctions, we are trying to go ahead with the project; a new payment system will have to be put in place,” he stated.

India Ports Global and Aria Banader Iranian Port signed a deal in May 2016 to equip and operate container and multi-purpose terminals at Shahid Beheshti – Chabahar Port Phase-I with capital investment of $85.21 million and annual revenue expenditure of $22.95 million on a 10-year lease.

Located in the Sistan-Baluchistan Province on Iran’s South-eastern coast, Chabahar port is of great strategic importance for development of regional maritime transit traffic to Afghanistan and Central Asia.

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