‘Iran is full of different natural reserves and Georgia can use them due to its geopolitical location,’ Kaladze said on Monday.

He reiterated that Georgia has planned to start negotiations with Iran on the landscape of economic cooperation with Iran.

‘We will negotiate with Iran not only on natural gas, but on the electricity,’ Kaladze added.

The Georgian energy minister is slated to visit Iran in the near future.

Addressing the Seminar of Introduction of Economic and Business Opportunities in South Khorassan Province and Iran-Austria Cooperation, Moschig said despite sanctions, Austrian traders and businesspersons are inclined to expand commercial cooperation with Iran.
Congratulating the audience on success in nuclear talks, he said the talks can have good economic and cultural results in international relations.
He predicted increase in volume of Iran-Austria trade exchanges in the future and said efforts should be made to life impediments, if any, on the way.
‘More important than commercial cooperation is human relations and mutual trust, leaving drastic impact on bilateral economic ties.’
He hoped that mutual banking ties will begin by end of 2016, and said it is hoped that the ground for mutual cooperation and commercial and economic participation of the two countries will be prepared.

Speaking in a press conference on the establishment of the Islamic Monetary Association, he said that the association was designed four years ago and established two years ago.

‘Training, research work and fundamental investigation on trade in Islamic countries were in the agenda of the association ever since its establishment,’ he said.

Salehabadi emphasized that the association is not merely allocated to capital market, as Islamic countries’ banking and insurance, too, are in the focus of attention.

The CBI has reported that the Switch Shaparak had ranked 1st as the best state trade dealers and Chakavak 3rd as a private sector e-trade dealer in the General Assembly of the AFACT.

In a part of the biennial gathering titled The Best Asian Electronic Trade Programs, Switch Shapark was among the top three and managed to gain the best firm’s title.

The AFACT meeting is inclusive of three working groups titled the Commerce and Trade Committee, the Committee to Support the Member States, and the Methodology and Technology Committee on the one hand and the biennial trade contest for best Asian electronic trade plans titled the e-Asia Awards.

The Asia Pacific Council for Trade Facilitation and Electronic Business (AFACT) is a non-governmental organization in which representatives and experts from member countries’ state and private sectors work to facilitate electronic trade in Asian and the Pacific region countries.

Speaking to reporters on the sidelines of the Iran-Azerbaijan Joint Economic Commission session, Vaezi said the meeting studies problems facing power network of the two countries. He said by next month, the two countries’ electricity networks will be connected.
He added that connection of the two neighbors’ electricity networks will provide a good opportunity in the region, which can be used for expansion of mutual ties.
He went on to say that Tehran-Baku diplomatic relations will keep pace with economic relations in terms of expansion.
He said the 10th Iran-Azerbaijan Economic Cooperation Commission session will have some approvals and the visit of Azeri President Ilham Aliyev to Iran is hoped to result in finalization of the approvals.
Meanwhile, Azerbaijan’s Minister of Economy and Industry Shahin Mustafayev told reporters that 50 percent increase in visit of Iranians to Azerbaijan is the good result of expansion of bilateral relations.
He said efforts will be made to ease exchange of visits and now about 486 Iranians students are busy studying in the Republic of Azerbaijan.

The signatories to the agreement were Russian Trade and Industry Minister Denis Manturov and Iran’s Minister of Industries, Mining and Trade Mohammad-Reza Nematzadeh.
The two sides’ private sectors inked yet one more agreement, which envisions exchange of technology for production of combine harvestors.
The Russian National Industrial Fair ‘Trade and Industrial Dialogue: Russia and Iran’ opened in Tehran Airshow Center, on December 21 and it will end on December 23.
Among the invited government officials and dignitaries to the event were Surena Sattari, Vice President of the Islamic Republic of Iran; Denis Manturov, Minister of Industry and Trade of the Russian Federation; Yury Slyusar, President of United Aircraft Corporation; Anatoly Artamonov, Governor of Kaluga oblast; Alexey Tyupanov, General Manager, EXIAR; and Export support agency of Russia CEOs of over 100 Russian industrial and technology companies and the regional governors.
Apart from over 10 conferences and seminars, the Russian side presents the 3,000 square meters exhibition with the most advanced technologies in Heavy Machinery, Transport and Agricultural Machinery, Pharmaceutical, Energy technologies as well as famous Sukhoi Superjet 100 aircraft and Sukhoi SuperJet 100 Business Jet. The event organizers invite the public to attend the event.

According to the Russian News Agency Sputnik, the industrial exhibition ‘Trade and Industrial Dialogue: Russia – Iran’ is being held in the Iranian capital, at which Russia is expected to introduce its manufacturers to the Iranian market.

‘The issues of the creation and development of a system of after-sales service for Russian helicopters on the premises of an existing aircraft repair plant and a service center is expected to be discussed with representatives of the Iranian company PANHA [which specializes in the technical support and repair of helicopters],’ the company’s press service said in a press release.

It was mentioned in the press release that Moscow and Tehran are expected to discuss the potential supply of Russian Mi-8/17, Ka-32A11BC and Ka-226T helicopters, including its medical version.

Russian Helicopters is a leading helicopter design and manufacturing company, headquartered in Moscow.

The holding was founded in 2007, and includes five helicopter construction plants, two design bureaus, and a number of enterprises for the production and maintenance of components. The company also provides after-sales support for its products, both in Russia and abroad.

Apparently, such reactions stem from an old belief that relationship between the rial and the world’s strongest currency should be stable.

In view of the economic exigencies and conditions prevailing in the post-World War II era, ‘fixed exchange-rate system’ was used to determine the value of national currencies. Also called a ‘pegged exchange rate’, the system is a type of exchange rate regime where a currency’s value is fixed against either the value of another single currency, to a basket of other currencies, or to another measure of value, such as gold.

In 1971, the US stopped using the system, following which ‘floating exchange rate’ system or ‘fluctuating exchange rate’ gradually became popular. Later on, a number of countries decided to replace the system with ‘special drawing rights’ — supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund — regime, whose efforts fell flat. Eventually, most currencies’ parity rate was calculated by the market.

Prior to the victory of the Islamic Revolution (1979), due to the increase in Iran’s oil revenues, the country used the ‘fixed exchange-rate system’ to estimate the rial’s parity rate against other major currencies. The trend continued to be used for a couple of years after 1979. Following this, Iran replaced the ‘fixed exchange-rate system’ with ‘multiple exchange rate system’.

The Central Bank of Iran set and announced an official exchange rate for importing certain goods, while the free-market rate was a different figure. Later on, the CBI set other rates for exports, passengers and purchasing medicines as well as paper. In 1993, due to its inefficiency and massive corruption and misuse, the system was substituted by a single-exchange rate regime which failed to endure for more than six months due a shortage in forex reserves, despite considerable efforts by the central bank. Eventually, the regime was once again replaced by the ‘multiple exchange rate system’.

Following that, due to an inflation rate of 50 percent, the government changed its economic plan and adopted an economic stabilization policy to stem rises in prices by applying the ‘single-exchange rate’ system and tolerating free market rate fluctuations. Nevertheless, after a while, due to supply-demand imbalance and high inflation, the CBI inevitably made several changes in official rates. This was while, the dual exchange rate was still the domestic economy’s dominant system pushing down the value of the rial against the dollar.

Following an improvement in economic conditions resulting from the hike in oil prices, a decline in foreign debts and an increase in the forex reserves, the government and CBI began to implement a single-rate system again in 2002, despite the opposition from some conservative politicians and experts who were concerned about higher inflation rate and viewed a decrease in the value of the national currency as a mishap which went totally against national interests. The government initiated the move, this time, with greater knowledge and experience about the condition of the economy as well as the forex market and managed to prevent inefficiencies and corruptions.

The government gave the new regime the title of ‘managed floating exchange rate system’. This meant that the CBI was able to manage forex rates through market supply-demand mechanisms and, thus, do away with wild fluctuations in hard currency rates.
The policy was soundly pursued until 2011, thus, enabling the CBI and government to reduce speculation and inflation. The CBI steered the forex market based on the difference between domestic and foreign inflation with a slight delay and, therefore, prevented black market activities or dual forex rates. In addition, due to a reduction in the number of cumbersome rules and regulations on exports and imports, such as doing away with the purchase order registration procedure, more demands were directed towards the official forex market and, consequently, unofficial market lost its popularity.

Nevertheless, the intensification of Western sanctions and adoption of imprudent economic policies, led to a number of limitations on the forex market and development of black market.

As the helmsman of forex policies, the CBI could not endure the outcomes of the past government’s flawed economic policies which led to a chaos in the market. Frequent changes in CBI policies and instructions heightened concerns among the people and banks. In the meantime, the government’s persistence on maintaining stable official rates, widened the gap between official and free-market rates. In successive stages, the value of the dollar reached 36,500 rials from 12,000 rials. It was a sudden change which was brought about due to the country’s political and economic condition. In addition, the government adopted a ‘multiple exchange rate system’ again and introduced ‘reference rate’ and ‘exchange rate’ as the two main forex rates in the market. During this period, speculations easily caused considerable fluctuations in the free-market rates. Moreover, the CBI failed to bring down the value of the dollar against the rial by injecting hard currency into the market.

The Rouhani administration, however, managed to restore stability to the market and bring forex rates down. In two years, the 11th government cut down inflation from 40 percent to 13 percent. This success was an outcome of a greater concordance among the government’s monetary, financial and forex policies.

Unlike the past, the CBI did not insist on keeping the rial’s parity rate stable against that of the dollar, which helped narrow the gap between the free-market, official and exchange rates. Moreover, the remarkable difference between the domestic and foreign inflation and the use of market mechanism further helped reduce the gap between the rial and other currencies, which is necessary for striking a balance in the forex market.

Given that oil prices have dropped drastically and the global markets have fallen into an unprecedented recession, raising non-oil exports will be necessary. Following the removal of the sanctions, the CBI will be able to exercise a more efficient management over the forex market and further narrow the gap between the rial and other currencies.

Hossein Pir-Moazzen said that presidents of the two countries held talks for four times which indicated importance of relations between the two states.
He said that the two countries are willing to increase economic ties, linking railway of the two countries to prepare ground for Iran’s more presence in European market.
Pir-Moazzen reminded necessity of cancellation of visa between the two countries saying that customs house recommended cancellation of visa may play an effective role to enhance trade and economic cooperation.
At the first stage, visa for businessmen should be cancelled and in next step for all citizens of the two states, he added.
Facilitation in banking ties is one of main desires of economic activists of the two countries.
The official said that sanctions on Russia by European states is an opportunity for Iran to increase its export to Russia through Azerbaijan Republic.
Businessmen of the two countries held joint meeting at the venue of Chamber of Commerce and Industry.

He made the remarks at the Atlantic Council and The Iran Project Symposium on December 17.
According to the US Department of Treasury, Szubin said that after the nuclear deal’s implementation, for the first time in many years, non-US persons will be able to purchase unlimited amounts of crude oil from Iran without the risk of US sanctions. And for the first time in many years, we will not sanction foreign investment by non-US persons in Iran’s energy sector.
The official said in the meantime that not all of Iran’s economic problems are traceable to sanctions.
We are on the road to Implementation Day. But we are not there yet, he added.
Before Implementation Day, companies can prepare for, but not consummate, trade that will no longer be sanctionable after Implementation Day. This means that non-US companies and individuals can engage in exploratory discussions, in Iran or elsewhere, about the possibilities of conducting business in Iran after Implementation Day, Szubin underlined.
Still, preparing for business involving Iran is different than finalizing that business. Entering into contracts involving Iran prior to Implementation Day may be sanctionable. For this reason, I would urge anyone interested in doing future business with Iran to seek expert guidance, he said.
Szubin added that to that end, OFAC will publish clear and detailed guidance to ensure that the business community fully understands the sanctions that are due to be lifted on Implementation Day – and the non-nuclear sanctions that will remain in place. If questions remain, people should bring them to OFAC. We are here to help.
This all does not mean that companies must avoid Iran. The US will not stand in the way of business activities in Iran that are consistent with the JCPOA, he added.
Szubin said that the US will continue to support the work of our partners in the private sector in Iran. But ultimately, if Iran wants to benefit fully from new, long-term relationships with international financial institutions, it is up to Iran to make the necessary financial reforms.
He said that first, we will authorize the export, re-export, sale or lease of US-origin commercial passenger aircraft and related parts and services to Iran, which will help improve the safety of commercial air travel for every-day Iranians.
Second, we will authorize the importation of Iranian-origin carpets and foodstuffs into the United States, Szubin said.
He noted that we will authorize foreign subsidiaries owned or controlled by US companies to engage in certain activities with Iran or Iranian persons that are consistent with the JCPOA and US law.
These three areas come on top of the limited trade with Iran that we have long authorized, he said.
‘For many years, we have allowed US companies to export certain food, medicine, medical supplies, and agricultural commodities to Iran. We have also licensed the export of goods that help the people of Iran communicate more freely,’ Szubin noted.
He said that the US is now moving forward to implement the deal. Coordinating closely with our international and domestic partners, the United States will work to ensure that Iran fulfills its commitments, and ‘we will ensure that we fulfill ours’.
We hope that Iran does so, and that their civil society can see the potential economic benefits that are on the table. It is not our policy to punish or deter business activity in Iran that is consistent with the JCPOA, Szubin noted.
Citing the US long time accusations against Iran about human rights violation and sponsoring terrorism, Szubin said the US will continue its pressures on Iran in other areas.