Economy, Business And Markets

Minister Calls for Deepening Global Monetary Ties

Minister Calls for Deepening Global Monetary Ties  Minister Calls for Deepening Global Monetary Ties

Minister of Economy Ali Tayyebnia has called for deeper financial ties between Iran and other nations.

Tayyebnia, who was speaking on the sidelines of the signing ceremony of China-backed Asian Infrastructure Investment Bank on Monday, informed his Chinese counterpart of the significant potential for investment in Iran when nuclear-related sanctions are lifted, the website Banker reported.

“There is enormous investment potential in Iran and it could be argued that the Iran enjoys a rare investment status among world nations,” Tayyebnia said.

Rich natural resources, vast educated workforce, easy access to northern, eastern and western neighbors of Iran, availability of cheap sources of energy and progressive investment laws are advantages that distinguish Iran as a top  investment destination.    

The minister said the unique investment advantages of Iran has led different delegations from Arab and Asian nations to travel to Iran to explore investment opportunities in the country.

Representatives from all 57 founding member states gathered in Beijing for the signing ceremony on June 29. “The ceremony would mark a new round of activity for the bank,” Tayyebnia said upon his arrival in Beijing, adding that Iran, as a founding member, would work to play an effective role in the infrastructure bank.

The China-led bank is expected to launch with an initial subscribed capital of $50 billion and will focus on financing energy, transport, telecommunications and environmental projects. For Iran, inclusion in the new development bank is a step forward on the global stage and a move in line with principles of Resistance Economy, a set of guidelines advocated by Iran’s Leader Ayatollah Seyyed Ali Khamenei to decrease the country’s reliance on oil exports.

 Positive Outlook

Tayyebnia further announced that Iran had devised “extensive” market investment plans, which will be laid out gradually. “There will be a bright future for Iran’s investment landscape,” the minister said.  

He said: “In order to promote financing in the primary market, we should prop up the secondary market as well. In our strategies, however, our target is to stimulate the investment market and increase financing in the primary market.”

The minster also referred to the elimination of the US dollar in transactions with certain countries, saying Iran is prepared to enhance trade ties with other nations using local currencies of the two sides.    

Iran’s nuclear negotiations with the P5+1, the permanent UN Security Council members plus Germany, to reach a final agreement are due to finish Tuesday, but it is expected to continue into July.

The negotiations aim to see limits placed on Tehran’s nuclear program in exchange for the removal of western sanctions. However there are still several issues to reconcile before a deal can be reached.