Walkingstick » November 26th, 2016
The State Bank of Viet Nam (SBV) today again raised the exchange rate by 13 Vietnamese dong, taking it to a record high of VND22,131 per US dollar.
With the allowable trade, the dollar at +/-3 per cent on either side of the reference rate, commercial banks revised their offering prices upwards.
Vietcombank today also increased the rate by 100 dong as against yesterday, listing the rate at VND22,690 and VND22,790 for selling and buying, respectively. BIDV and VietinBank also listed the same rate.
ACB raised the US dollar price by 70 dong against the previous day, both for buying and selling, to trade at VND22,670 and VND22,790 per dollar, respectively.
The US dollar prices were also increased at Techcombank to VND22,650 and VND22,790 for buying and selling respectively. With a rise of 70 dong for buying and selling against the previous day, Sacombank traded the dollar at the rate of VND22,680 and VND22,790 respectively.
With the increase, the selling rate of the US dollar at commercial banks was five dong lower from the ceiling level allowed by the SBV – the shortest level so far this year.
The US dollar has been strengthening against the dong, both in the official and unofficial markets. The buying prices in the unofficial markets surged to VND22,850 and VND22,880 while the selling price increased to VND22,950 each.
At the Quoc Trinh Jewellery Company on Ha Trung Street, the most popular forex trading point in the unofficial market in Ha Noi, the dollar was bought for VND22,870 and sold for VND22,950.
In the global market, the US dollar reached the highest level over the past 14 years yesterday thank to the better economic indications for the US and decreasing value of the Chinese yuan.
In the global market, the US dollar Index, which tracks the greenback’s performance against 16 other currencies, climbed 0.6 per cent to 91.87, its strongest level since December 2002, according to the Wall Street Journal Dollar Index.
The SBV has allowed extending the foreign currency lending to local exporters till the end of 2017.
The decision was aimed at reducing lending interest rates to help support exporters to drop their production costs and improve competitiveness.
However, experts were worried that the extension would affect the dollarisation of the economy as this has been the third time the central bank has extended the lending
They also said the SBV should have strict punishment for foreign currency mobilisation which violates regulations. — VNS
Don961 » November 26th, 2016
Currency Market Under Control
The rate of the US dollar to the rial is unlikely to reach 38,000 rials, said Hamid Zaman Zadeh, director of research department at Banking and Monetary Institute, affiliated to the Central Bank of Iran.
“Currently, the market is not in a crisis and no volatility is predicated. Donald Trump’s victory in the US presidential election lead to increased uncertainty in the market. Concerns will gradually fade away if the upcoming US government does not act on major policy changes (as promised during Trump’s campaign),” Fars News Agency quoted him as saying on Thursday.
His comments come after the recent rally in US dollar and other major currencies in the Iranian market.
The greenback sold for 37,430 rials on Thursday. The currency has gained 1,320 rials during the past 30 days. It fetched 36,110 rials on October 25.
Euro was sold for 40,350 rials on Thursday, having increased by 790 rials during the past 30 days. The British pound gained 2,580 rials during the one-month period and sold for 47,090 rials on Thursday.
Businesses are concerned about possible hindrances in the implementation of CBI plans for launching a single forex rate regime by the end of the current fiscal year in March 2017.
Mohammad Lahouti, a board member of Tehran Chamber of Commerce, Industries, Mining and Agriculture, said he “wonders why the CBI has not yet unified foreign exchange rates, which he called “the private sector’s main concern.”
“Lack of sufficient resources [probably] is the main cause of delays in the implementation of the plan,” TCCIM news website quoted him as saying.
“The CBI is also obliged to control heavy fluctuations in forex market, according to the Fifth Five-Year Economic Development Plan,” he added.
Addressing similar concerns, Zaman Zadeh said the CBI will keep increasing the official exchange rate, in line with plans for the unification of forex rates.
The central bank is working to bring the official and market rates closer, mainly through gradually raising the official exchange rates over the past few months. Official rate for the dollar was 32,095 rials on Thursday.
Currently, there is a 15% difference between the official and market rates, according to the official. “There used to be a 50% difference between the two rates.”
“A unified rate for the US currency would probably be lower than 37,000 rials,” he said, “unification of the forex rates will increase supply in market, which by extension would lower the rates.”
Zaman Zadeh referred to the surge in Iran’s oil revenues [in the wake of sanctions relief] and income from non-oil exports and said Iran has sufficient resources needed for the unification of currency rates.”
Iran was forced to revert to the controversial double exchange rate regime after nuclear-related sanctions unleashed turmoil in the forex market in 2011-12 in which the national currency lost almost 70% of its value within days.
Forex Rate Unification Tehran Currency Market
Short URL : https://goo.gl/TbCVB6
Samson » November 26th, 2016
Karaj is going to become a new hub for technology companies, becoming the second such site around the capital
Saturday, November 26, 2016
Iran’s Media City is to play the role of an incubator for startups active in the field of social media.
Iran’s High Council of Cyberspace is eyeing Payam Special Economic Zone, an area to the south of Karaj, as a possible candidate for the establishment of Iran’s first ‘Media City.’
The Head of the Council, Abolhassan Firouzabadi in an interview with Mehr News Agency announced the upcoming national plan earlier this week.
The government official stated that the Media City is to play the role of an incubator for “startups active in the field of social media.”
Over the past half decade, the number of Iranians active on social media applications has grown significantly; therefore, expanding and regulating the sector has been on top of the high council’s agenda.
For instance Telegram, a messaging app which some Iranians also use as a social media network has 45 million subscribers in the country, a number which has made officials wary of the social impact of the application.
Several initiatives have been issued by the state for development of indigenous messaging applications and social media websites.
Firouzabadi said, “The state is aiming to create an environment in which ICT companies and startups can thrive in.”
Payam Special Economic Zone (which is owned by the ICT ministry) is located in Alborz Province adjacent to Tehran and is currently host to electronic manufacturers producing televisions; the area also is the site of a small airport which is planned to become the capital’s third airport in the next decade.
The top ICT official also said the site was studied for the establishment of a technology hub with the emphasis on social media and networks, which would be called “Media City.”
The Payam SEZ would be the first dedicated site just for social media development. However there is no sign that foreign social media companies would enter the fray, and it is more likely the place would become another hotbed of local tech firms.
Firouzabadi noted that Payam FEZ is the best option for founding Media City since it is close to the capital and also has the required infrastructure.
The official said one of the major differences between the Media City and other technology related parks would be that “the Media City is to be content oriented. This is while other technology parks are only concerned about expansion and development of new technologies.”
“The National Center for Cyberspace will be in charge of the project,” he said.
Earlier in July it was reported that the Ministry of Information Tec
hnology and Communications had set up a “science corridor” formally called The Center for Information and Communications Technology in Tehran and Alborz provinces. Payam SEZ has been announced as one of the telecom-related centers of the corridor as it lies near the Tehran-Karaj Highway.
Previously, another candidate was Pardis Technology Park located east of Tehran. According to Firouzabadi, the recent round of studies showed that Pardis Technology Park does not suit the project. He added, “The tech park is to be expanded and new offices and facilities are to be built there in near future.”
Iran’s Largest Internet Provider Moves to Karaj
Meanwhile, the deputy telecoms minister announced that Iran’s largest Internet service provider will transfer its call center to Karaj, just north of the Payam SEZ, according to CITNA.
The company has already expanded its presence in the satellite city by establishing several offices and moving parts of its infrastructure away from the capital to cut costs.
Financial Tribune reached out to Shatel and a company official affirmed the upcoming development. He said “The call center is being established currently in Karaj and it will be launched before the end of the current Iranian calendar year (ending March 20).”
The Ministry of ICT has been investing vastly in Alborz recently. During the last week visit of President Hassan Rouhani and Mahmoud Vaezi, Minister of ICT to Karaj nine telecom related projects were launched in the city.