Financial Tribune https://financialtribune.com/rssn.xml/robots.txt Iranian English Economic Daily en How Command Economy Impacts Stock Market https://financialtribune.com/articles/domestic-economy/119314/how-command-economy-impacts-stock-market <p> Some governments have nurtured the disingenuous idea that they know the interest of the people better than the people themselves and, therefore, interfere in every issue. But at present, the impact of this type of administration can be seen vividly. <br /> The situation in Iran today is the result of the same guardian-like attitude of the governments during the past 100 years, Alireza Tavakkoli Kashi, a capital market analyst, said in a write-up for the Persian daily Donyay-e-Eqtesad. The translation of the full text is as follows:<br /> In Iran, the government has a prominent role in the economy and its most distinct footprint can be seen in the capital market. Consequently, the government, as the top regulator, has set the regulations in all economic fields. <br /> As a result, the government is entitled to make decisions to regulate the market, and there is a possibility that such decisions may not be within the framework of market regulations and amount to interference in the market mechanism. In this regard, we can refer to the capital market, on which the government’s shadow looms heavily. For instance, as the government’s revenue comes from the oil sector, the authority to decide the crude oil price, allocate gas to steel and petrochemical companies, etc. rests with the government. This is while a large part of the capital market is being formed by the same refining and petrochemical companies. <br /> Therefore, due to the authority vested with the government, its decisions can directly and indirectly affect the capital market <br /> The government is in charge of Anfal (safeguarding public wealth); that is to say, it must protect the general rights of public property belonging to the whole country. On the other hand, it should be in charge of the long-term development of the country. Now, as the government is struggling with problems such as sanctions and declining tax and export revenues, it will resort to selling mining exploitation rights, or setting oil and gas prices to balance its budget. In other words, to balance economic parameters, the government takes decisions that pay little attention to long-term interests in that field and deal heavy blows for claiming some short-term achievement.<br /> Many positive and negative developments have taken place in the past hundred years. A review of the successful pricing experience in the field of energy, especially gasoline, since the establishment of the first gasoline station in Abadan in the fiscal 1927-28 until the management of fuel consumption during 2007-11, which led to a sharp reduction in gasoline consumption, shows how a healthy mechanism could be applied through sound policymaking and in the absence of command economy. <br /> The capital market, as a mirror image of the economy, can reflect the results of the government’s decisions and strategies more than any other market.<br /> In fact, as the prices are set momentarily in the stock market and the companies react to political, economic and even international events, news and decisions, it can be reiterated that the effect of government decisions, whether right or wrong, can trigger volatility in the economy, especially the stock market.<br />  </p> Saturday, July 22, 2023 https://financialtribune.com/articles/domestic-economy/119314/how-command-economy-impacts-stock-market Banks Have 4 Months to Comply With AML Rules https://financialtribune.com/articles/domestic-economy/119313/banks-have-4-months-to-comply-with-aml-rules <p> The Financial Intelligence Unit (FIU) of the Ministry of Economy has called on banks and credit institutions to redefine infrastructure for effectively implement restrictions on individuals suspected of money laundering. <br /> Financial and credit institutions have been given a four-month deadline to fall in line and update software systems to comply with the restrictions imposed by the Financial Intelligence Unit. <br /> Constraints are in line with Anti-Money Laundering (AML) Law and compensate delays in implementing rules tied to strengthening the fight against dirty money and corruption, ISNA reported.<br /> FIU head Hadi Khani reemphasized the need and significance of curbing money laundering and corruption. "Failure to take appropriate action by financial and credit institutions will result in legal action as enshrined in the Anti-Money Laundering Law.<br /> Established in 2008, the FIU is affiliated to the Iran High Council on Anti-Money Laundering and headed by the economy minister. It has a mandate to look into potentially suspicious money transactions. IFU has signed documents with 15 countries. <br /> Over the past two years the CBI has taken measures to improve supervision over banks and their performance. Among other things, the regulator wants to ensure that AML laws are upheld, curb tax evasion and curtail speculation in the financial markets, namely gold and forex. <br /> Following concerns over money laundering, the regulator last year barred banks from processing payments related to  customers lacking full ID information in the bank data center.<br /> The amended AML Law was proposed by former president Hassan Rouhani in early 2018, after it was studied by key entities, namely the specialized committees in government, parliament, the constitutional watchdog Guardians Council plus the Expediency Council, the top arbiter.<br /> The law was first ratified in February 2008 and as time passed it became obvious that it needed amendments.<br /> In August 2018, amendments to the CFT (Combating Financing of Terrorism) Law of the Islamic Republic of Iran were approved by the Guardians Council and notified to the relevant organizations.<br /> In 2019, the CBI in an executive bylaw made it mandatory for banks to create special units to monitor potential money laundering. <br /> To manage risks emanating from suspected money laundering and terrorism funding, lenders are obliged to critically review and identify risks before offering financial services. <br /> Anti-money laundering departments are obliged to oversee all transactions conducted by banks and report dodgy deals and violations of AML rules to the CBI and other relevant bodies. <br /> Earlier the central bank announced a daily cap for banking transactions by clients. Per the rule, which came into effect early this year, transactions via all inter-bank systems was limited to one billion rials per person per day.<br /> The regulator had earlier compartmentalized individual and business accounts. In February, it required individual customers to present documents showing the reason for transactions above two billion rials at one bank per day. <br /> The Paris-based Financial Action Task Force, the global money-laundering watchdog, has long urged Iran to strengthen its legal framework to guard against money laundering. <br /> The watchdog has put Iran on its blacklist after Tehran failed to fully comply with its anti-money laundering norms. During its plenary meeting in October, the FATF announced that Iran would stay on its blacklist.<br />  </p> Saturday, July 22, 2023 https://financialtribune.com/articles/domestic-economy/119313/banks-have-4-months-to-comply-with-aml-rules Tehran Chamber of Commerce to Organize Five Business Courses https://financialtribune.com/articles/domestic-economy/119312/tehran-chamber-of-commerce-to-organize-five-business-courses <p> The Education and Human Resources Institute, affiliated with Tehran Chamber of Commerce, Industries, Mines and Agriculture, is scheduled to hold five business courses in July and August.</p> <p> The first course titled “Digital Marketing for Exports” will be held online as of July 23 on Sundays from 4-6 p.m. Topics include introduction to online market research for exports, market research tools, market analysis of export destinations, export-oriented B2B platforms and marketing via Google for exports, the news portal of TCCIM reported.</p> <p> The second course titled “Forwarding Operation” will be held online as of July 25 on Tuesdays from 5-8 p.m. Subjects will include introducing the forwarder and its place in transportation, forwarder history, development of combined transport, forwarder in international trade, commercial documents, forwarder services and responsibilities, FIATA International Federation of Freight Forwarders Associations documents, international documents and forwarding regulations and conditions. This course will run for a total of 16 hours.</p> <p> The third course titled “Feasibility, Evaluation and Market Research” will be held online as of Aug. 1 on Tuesdays from 5-8 p.m.</p> <p> Topics include selecting the target market, market classification, market research and a review of competitors' status, a review of the supply chain, supply and demand analysis of the project under study and feasibility studies.</p> <p> This course will run for nine hours. The fourth one titled “Checking and Completing Commercial Documents” will be held online as of Aug. 6 from 5-8 p.m. Subjects will include familiarity with different types of bills of lading and their use, preparation of shipping documents to be presented to the bank, preparation of documents required for goods clearance and familiarity with documents required to remove bank obligations. This course will run for six hours. The fifth course titled “Legal Terms for oil and Gas Contracts” is scheduled to be held as of Aug. 12 from 6 p.m. to 9 p.m. Topics include terms related to oil and gas contracts, petroleum operations, financial and tax systems of petroleum contracts, legal terms of oil contracts, Iran Petroleum Contracts and settlement of petroleum disputes (international arbitration procedure).</p> <p> Those interested may register at Edu.tccim.ir, or obtain more information by contacting +982188107732 or +982188107723.</p> Saturday, July 22, 2023 https://financialtribune.com/articles/domestic-economy/119312/tehran-chamber-of-commerce-to-organize-five-business-courses Q1 Domestic Air Traffic Reviewed https://financialtribune.com/articles/domestic-economy/119311/q1-domestic-air-traffic-reviewed <p> Domestic air passenger traffic registered a rise of 1% during the first quarter of the current Iranian year (March 21-June 21), as 9.22 million passengers were flown internally by Iranian airlines, new data released by Iran Airports Company show.<br /> The number of takeoffs and landings decreased by 2% to reach 78,654. <br /> Over 82.42 million tons of cargo were transported by air during the period, marking a 2% increase.<br /> Tehran’s Mehrabad International Airport saw the highest traffic during the period and accounted for 3.22 million of the total number of transported passengers (9.22 million), 3% more than in the corresponding period of last year.<br /> Mashhad International Airport and Kish International Airport followed with 1.55 million and 791,853 respectively. <br /> Mehrabad handled 27,719 landings and takeoffs during the period, considerably higher than other Iranian airports.<br /> The above figures pertain to domestic flights only, as IAC does not report international traffic.<br /> All international flights in Tehran are served by the Imam Khomeini International Airport and all domestic flights by Mehrabad International Airport.<br /> The previous reports only included the passenger traffic, takeoffs, landings and cargo transport of companies and airports owned by IAC, but the new report also includes private airports and companies.<br />  </p> <h2> <br /> Monthly Review</h2> <p> The IAC data also show that in the third month of the year (May 22-June 21), 2.88 million passengers were transported by Iranian airlines on domestic routes, down 5% year-on-year.<br /> Takeoffs and landings posted a 5% decline to 25,205. <br /> Over 24.23 million tons of cargo were handled during the month, 1% less than 24.59 million tons in Q1 last year. <br /> Mehrabad International Airport accounted for 1 million of the total number of transported passengers, down 2%. It handled 8,897 landings and takeoffs during the period, considerably higher than those of other Iranian airports.<br /> Mashhad International Airport and Kish International Airport followed with 527,569 and 185,937 passengers, respectively. <br /> The IAC data also show a total of 896 flights were operated on Tehran-Mashhad route during the month, transporting 120,919 passengers to top the list of air routes with the highest passenger traffic.<br /> A total of 123,967 passengers were flown from Mashhad to Tehran during the period via 891 direct flights.<br /> Kish-Tehran route came next and was followed by Tehran-Kish and Shiraz-Tehran routes.<br />  </p> <h2> Average Delay of 94 Minutes Per Flight</h2> <p> Domestic flights in the third month of the year were delayed by an average of 94 minutes per flight.<br /> Around 28% of flights were delayed in the month: The longest average delay in flights was registered by Fly Persia Airlines with 131 minutes and the shortest by Mahan Air with 59 minutes. ASA Jet did not record any delays during the month.<br /> Technical issues are said to be the main cause of the long delays, as Iran’s aviation sector has for years been facing US sanctions that prevent it from procuring vital spare parts for repair.<br /> Low productivity and frequent repairs of Iran’s old planes have increased the prices of air tickets. The operation of small airlines is not economically feasible, as some of them have been pushed to the brink of bankruptcy. They are renting or selling their old aircraft to other larger airlines. <br /> “Eleven grounded airplanes have returned to service during the past 100 days after their repair and overhaul by local technicians,” Jafar Yazarlou, spokesman of the Civil Aviation Organization of Iran, said earlier in April.<br /> The repaired aircraft included two Boeing 737, one Fokker 100, one Airbus A31 and three ATR, IRNA reported.<br /> “At present, we are locally producing 1,000 types of airplane and helicopter parts,” he said.<br /> The US sanctions have grounded many planes and caused technical problems that result in incidents, sometimes fatal.<br /> Hamid Ghavabesh, the former head of Iranian Airlines Association, has told the Persian economic daily Donya-e-Eqtesad that the average age of planes in the Arab countries and Turkey is five to six years whereas the average age of Iranian aircraft is estimated to be 28 years; some older aircraft are also among Iran’s air fleet.<br /> “Except for the limited number of planes purchased after the conclusion of the Joint Comprehensive Plan of Action [Iran nuclear deal], there is no new aircraft in the Iranian air fleet,” he added.<br /> According to Mohammed Mohammadi-Bakhsh, the head of CAO, no aircraft is sent abroad for repairs and all the work is undertaken by local engineers.<br /> “We are facing a severe shortage of expert manpower for repair, maintenance, design and manufacturing,” he said.<br /> The government of Ebrahim Raisi has sought to meet the increasing demand for air travel by pursuing three strategies: buying secondhand airplanes, overhauling the grounded fleet and airplane manufacturing.<br /> “The number of Iran’s airline seats increased by 40% last year, as demand has increased 2.5-fold,” Mohammadi-Bakhsh said in January.<br /> “Iran needs 550 passenger planes in its air fleet to be able to adequately meet demand,” he said in a meeting of government officials on the country’s air transportation, Fars News Agency reported.<br /> “A full-blown war is being waged by world powers against the Islamic Republic in the aviation industry. We are pursuing our goals in four areas of manufacturing, repair and buying secondhand, in addition to purchasing new aircraft.” </p> Saturday, July 22, 2023 https://financialtribune.com/articles/domestic-economy/119311/q1-domestic-air-traffic-reviewed New General Insurance Company Makes Debut https://financialtribune.com/articles/business-and-markets/119310/new-general-insurance-company-makes-debut <p> Pardis Insurance Company has received an operating license allowing the company to handle risks in all insurance categories. <br /> The Central Insurance company of Iran (CII) in a note called on Pardis to focus on developing smart products using advanced technology such as artificial intelligence, and offer innovative solutions. <br /> "The company is expected to expand into deprived areas, create online and smart supervisory mechanisms, curb fraud and human error, satisfy policyholders and help the insurance industry embrace innovation," the CII said in a note. <br /> Over the years the CII has hardly made a secret of its aversion to increase the space for new players and has restricted licensing to specialized firms, especially life insurance.<br /> Measures by the CII to push insurers away from auto and medical insurance (two top moneymakers) to other emerging segments, especially life insurance, have so far not produced the desired results.<br /> However, following a recent shift in the regulator's policies the number of insurers, including reinsurance, life insurance and general insurance companies, is expected to increase. <br /> The CII now says newcomers are on the radar to increase the penetration rate and enhance quality, referring to studies that say the domestic insurance industry has the capacity for 56 companies from the present 48.<br /> This is while market observers claim otherwise, saying that the industry does not have the capacity for more players, at least not in the present difficult economic climate.<br /> The regulator recently issued license for four new reinsurance companies, namely Saman Re, Tehran Re, Moein Re, and Pars Ava Re; one life insurance company, Charisma Life Insurance Company. <br /> The regulator granted an operating license to one more general insurance company earlier this year, Farda Smart Insurance Company, to offer digital service.<br /> Hummers Life Insurance Company has received an operating license, making it the fourth specialized life insurance firm in the domestic market.<br /> It is expected to issue permission for the establishment of more firms, namely Etemad Insurance, Bamdad Insurance, Soroush Insurance, Raya Reinsurance and Isatis Life Insurance.<br /> Iran's insurance market reported decent growth in the last fiscal year that ended in March with total premium income reaching 1,754 trillion ($3.2 billion). <br /> The y/y growth was 49.95%, according to CII data. The biggest contributor to insurance premium was third-party auto insurance accounting for almost 31.2% of the total. Medical insurance was next with 26.16% followed by life insurance 14.10%.<br /> In terms of premium growth, the highest was seen in the medical category as it surged by a whopping 102.68% from last year. The auto accident, money and transportation categories followed with 86.8%, 84.38 and 60.73% growth, respectively.<br /> Life insurance sector’s premium registered 34.75% rise, though its contribution to the industry's portfolio was slightly lower than the year before, when it accounted for about 15.7% of total premium. <br /> Total insurance policies sold in the last calendar year was 74.11 million, up 3.65% compared to the previous year. Third-party auto insurance as usual had the largest share in sales with 35.6% of the total, followed by driver liability category at 34.95%.</p> Saturday, July 22, 2023 https://financialtribune.com/articles/business-and-markets/119310/new-general-insurance-company-makes-debut Q1 Underemployment at 8.3%: SCI https://financialtribune.com/articles/domestic-economy/119309/q1-underemployment-at-83-sci <p> Underemployment, the condition in which people in a labor force are employed for less than 44 hours of service per week, stood at 8.3% in the first quarter of the current Iranian year (March 21-June 21), down 1.4% year-on-year and was higher for men and those living in rural areas, according to the Statistical Center of Iran.<br /> The Q1 underemployment rate for men and women stood at 9% and 4.4%, respectively. It was 7.1% for urban areas and 11.9% for rural areas.<br /> The unemployment rate, the proportion of the jobless population of ages 15 and above, stood at 8.2% in Q1, indicating a 1% year-on-year decrease.<br /> A total of 2.16 million Iranians were unemployed in Q1. <br /> Men’s unemployment stood at 6.8% while the rate for women hovered around 14.8%. <br /> Over 1.49 million men and 673,071 women of ages 15 and above were jobless in Q1.   <br /> The unemployment rate was 9% for urban areas (1.81 million people) and 5.6% for rural areas (353,929 people).<br /> The total Q1 employment rate was 37.8% (24.3 million), up 0.7% compared with the same quarter of the last Iranian year. Employment rates for men and women were 63.7% and 12%, respectively, which constituted 20.43 million men and 3.86 million women in Q1. <br /> The employment rate was 36.8% (18.35 million people) in urban areas and 41.2% (5.95 million) in rural areas. <br /> The share of employment of university graduates stood at 26.5% of the total employed population, wherein male and female graduate employment rates were 22.9% and 45.7%, respectively. In urban and rural areas, graduate employment rates stood at 32.3% and 8.7% of the total number of job-holders, respectively. <br /> Q1 statistics show that 39.8% of the country’s labor force worked more than 49 hours per week, indicating a 0.5% decrease over the same period of last year.</p> Saturday, July 22, 2023 https://financialtribune.com/articles/domestic-economy/119309/q1-underemployment-at-83-sci US Gov’t Bans 14 Iraqi Banks in Crackdown on Iran Dollar Trade https://financialtribune.com/articles/business-and-markets/119308/us-gov-t-bans-14-iraqi-banks-in-crackdown-on-iran-dollar-trade <p> The United States has barred 14 Iraqi banks from conducting dollar transactions, the Wall Street Journal reported, citing US officials.<br /> The ban, which was imposed by the Treasury Department and the Federal Reserve Bank of New York, is part of a crackdown on the siphoning of US currency to Iran, the report said Wednesday.<br /> The United States uncovered information that the Iraqi banks engaged in money laundering and fraudulent transactions, some of which may have involved sanctioned individuals and raised concerns that Iran could benefit, the newspaper said, Reuters reported. <br /> "We have strong reason to suspect that at least some of these laundered funds could end up going to benefit either designated individuals or individuals who could be designated," a senior US official was quoted as saying by the Journal.<br /> "And of course the primary sanctions risk in Iraq relates to Iran."<br /> Among the banks on the US ban list are Al Mustashar Islamic Bank, Erbil Bank, World Islamic Bank, and Zain Iraq Islamic Bank, the newspaper said.<br /> Iraq's private banks association did not immediately respond to a request for comment. The Iraqi government, the US Treasury Department and the New York Fed did not immediately respond to requests for comment.<br /> Iran has been unable to access billions of dollars in assets in several countries due to US sanctions.</p> <h2> Piling Pressure </h2> <p> The United States has insisted that oil-rich Iraq, the OPEC group's second-largest producer, moves towards self-sufficiency. Washington has put pressure on Iraq to stem the flow of dollars into neighboring Iran.<br /> The news comes after the United States' move to let Iraq pay Iran for electricity via non-Iraqi banks, a US official said, a step Washington hopes may keep Tehran from forcing unpopular power cuts during the sweltering Iraqi summer.<br /> Secretary of State Antony Blinken signed a 120-day national security waiver allowing Iraq - heavily dependent on Iranian electricity - to deposit such payments into non-Iraqi banks in third countries instead of into restricted accounts in Iraq, said the official who spoke to Reuters on condition of anonymity.<br /> Monies put into the non-Iraqi accounts, like those deposited into Iraqi banks, will also be restricted, still requiring US permission for Iran to get access to them and only for spending on humanitarian goods.<br /> Tehran has in the past pushed Baghdad to secure US permission to release such funds by cutting Iranian natural gas exports to Iraq, limiting Iraq's ability to generate power and forcing deeply unpopular electricity cuts.</p> <h2> Baghdad’ Request </h2> <p> The latest waiver was expanded to permit payments to banks outside Iraq at the request of the Iraqi government, apparently in the hopes that this might transfer some of the pressure that Iran has exerted on Baghdad to other countries.<br /> "We have to help the Iraqis with this perennial pressure from the Iranians to access the money," said the US official.<br /> "The Iraqis have requested, and now we have agreed, to expand the waiver," said the US official, saying this might help ensure better compliance with the US requirement that any disbursements be for humanitarian purposes.<br /> "It also helps the Iraqis, at least somewhat, to have an argument to make (to Iran) that they are not in control of the money that they have paid (into non-Iraqi accounts)," he added.<br /> It is not clear, however, whether Iran might ease up on Iraq as a result. Tehran could decide it has greater leverage over Iraq than over other nations and continue to exert pressure. Iran's mission to the United Nations did not immediately respond to a request for comment.<br /> Iran is under extensive US economic sanctions reimposed in 2018 after then-US president Donald Trump abandoned the nuclear deal that Tehran struck with major powers Britain, China, France, Germany, Russia and the United States in 2015.<br /> Trump believed his policy of "maximum pressure" on Iran would force it to accept more stringent restrictions to its nuclear program, which the United States, European powers and Israel claim may be designed to obtain a nuclear weapon. Iran has long denied such ambitions.<br /> As a result of Trump's withdrawal from the deal and US President Joe Biden's failure to revive it, Iran could make the fissile material for one bomb in 12 days or so, according to US estimates, down from a year when the accord was in force.<br /> Despite its large oil and gas reserves, Iraq relies on Iran for natural gas that generates as much as 45% of its 14,000 megawatts of daily electricity consumption.</p> Saturday, July 22, 2023 https://financialtribune.com/articles/business-and-markets/119308/us-gov-t-bans-14-iraqi-banks-in-crackdown-on-iran-dollar-trade Herat Hosts Iran’s Solo Exhibition on July 20 https://financialtribune.com/articles/domestic-economy/119307/herat-hosts-iran-s-solo-exhibition-on-july-20 <p> An exclusive Iranian exhibition was inaugurated in Herat, Afghanistan, on July 20 in the presence of Iranian and Afghan officials.<br /> Iranian companies are showcasing their latest products and services in the fields of food products, plastic industry, porcelain, kitchenware, rubber, medicine, paint, aluminum, petrochemical and steel, IRIB News reported.<br /> Iran was unable to hold exhibitions in Afghanistan in the past three years due to political changes in the neighboring country and the Covid-19 pandemic. This is first time Iran is holding an exclusive exhibition in Afghanistan after the Taliban came to power.<br /> Iran’s trade with Afghanistan reached $400 million during the first quarter of the current Iranian year (started March 21), registering a 5% year-on-year rise, latest data published by the Islamic Republic of Iran Customs Administration show.<br /> Bilateral trade stood at $1.7 billion in the fiscal 2022-23 with Iranian exports standing at $1.65 billion, and imports at $30 million.</p> Saturday, July 22, 2023 https://financialtribune.com/articles/domestic-economy/119307/herat-hosts-iran-s-solo-exhibition-on-july-20 Iran-China H1 Trade Hit $7.5b: Chinese Customs https://financialtribune.com/articles/domestic-economy/119306/iran-china-h1-trade-hit-75b-chinese-customs <p> Iran’s commercial exchanges with its leading trade partner, China, reached $7.53 billion during the first half of 2023, registering an 8.1% decrease compared with the corresponding period of the year before.<br /> Latest data released by China’s General Administration of Customs show Iran’s exports totaled $2.2 billion during the six-month period ending June, indicating a 45.8% year-on-year fall.<br /> In return, China exported $5.32 billion worth of goods to Iran, registering a 29.1% increase. <br /> Bilateral trade hit $1.09 billion in June 2023 with Iran’s exports at $308.7 million and imports at $788.65 million.<br /> Iran’s trade with China in 2022 stood at $15.79 billion, registering a 7% increase compared with the year before. Iranian exports totaled $6.35 billion last year, indicating a 2.3% year-on-year decrease, while China exported $9.44 billion worth of commodities to Iran, registering a 14.3% increase. <br /> China has been the biggest destination for Iran’s exports of minerals and mining products in terms of value in recent years, new data released by the Iranian Mines and Mining Industries Development and Renovation Organization show.<br /> Total exports stood at 48.69 million tons worth $12.24 billion in the last Iranian year (March 2022-23). <br /> With over 10.94 million tons worth $2.9 billion, China accounted for 22.5% of weight and 23.7% of value of last year’s total exports respectively.<br /> China has remained Iran's largest trading partner for 10 consecutive years ending 2022, according to the Chinese Ministry of Commerce.<br /> Iran’s President Ebrahim Raisi paid a three-day state visit to China starting Feb. 14. During the visit, Tehran and Beijing signed a number of bilateral cooperation documents in the fields of agriculture, trade, tourism, environmental protection, health, disaster relief, culture and sports, Xinhua reported.<br /> Chinese President Xi Jinping met with Raisi in Beijing where the two leaders agreed on deepening China-Iran comprehensive strategic partnership.<br /> “Beijing will unswervingly develop friendly cooperation with Iran, regardless of how the international and regional situation changes,” the Chinese president said.<br /> “China has always viewed and developed its relations with Iran from a strategic perspective.”<br /> The Iranian president headed a delegation, including the new central bank governor and six members of Raisi's Cabinet, including the ministers of economy, petroleum, foreign affairs and trade.<br /> The documents would include agreements in the field of transportation worth $12 billion, which include projects like the high-speed rail link between Tehran and Mashhad, and investment in the Imam Khomeini Airport City. <br /> Investment in Iran's southeastern Makran Coast and the purchase of Iranian oil are also included in the documents, Caspian News reported.<br /> Raisi's visit serves as an example of the high level of mutual trust between China and Iran, as well as a milestone in their bilateral ties, CGTN wrote.<br /> During Raisi's visit, China and Iran exchanged views on promoting bilateral economic and trade relations, and reached a series of positive results.<br /> China has announced its willingness to work with Iran to implement the important consensus reached by the two heads of state in economic and trade fields, deepen pragmatic cooperation in other fields, import more Iranian products and continue cooperation in building the Belt and Road Initiative.<br /> It has promised to strengthen multilateral cooperation between the two countries under the framework of Shanghai Cooperation Organization and inject new growth impetus into deepening the China-Iran comprehensive strategic partnership.</p> <h2>  </h2> <h2> Iran’s Accession to SCO</h2> <p> On July 4, Iran officially became a full member of the Shanghai Cooperation Organization during a virtual summit hosted by India for the SCO Heads of State Council.<br /> “The Shanghai Cooperation Organization is of great importance for Iran, and Tehran’s effort to finalize its membership is regarded a significant measure in the field of diplomacy,” Mohammad Lahouti, the head of Iran Export Confederation, said in an interview with the Public Relations Office of Tehran Chamber of Commerce.<br /> According to the official, SCO members own a third of the world's land and soil, 43% of the world's population and 25% of the world's gross product, which indicate the significance of this organization at the international level. <br /> Recalling the government's general policy of focusing as much as possible on trade with neighbors and looking to the East instead of focusing on trade with the West, Lahouti said, “Iran's membership in SCO will facilitate trade with some countries, but we cannot expect miracles with regard to commercial obstacles currently facing Iran's foreign trade due to sanctions.” <br /> The IEC chief noted that Iran's isolation from the international economy has created problems for businessmen and economic players, saying that alongside interaction with the world's major economies in the form of Shanghai Treaty, efforts should be made to remove restrictions caused by sanctions in foreign trade.<br /> “Iran's trade with the member countries of Shanghai Treaty is very small compared to the volume of trade these countries have with the world. Last year, more than 50.6 million tons of goods were exchanged between Iran and 11 member countries of the Shanghai Cooperation Organization. Therefore, we must have an action plan for these countries,” he said.<br /> According to the official, Iran’s trade with SCO member states in the fiscal 2022-23 recorded a rise of 6.5% compared with the previous year, and the import share of this volume of trade, with a growth of 34%, was about 8.9 million tons. <br /> Afghanistan was among the top five export destinations of Iranian goods worth $1.48 billion among the member countries.<br /> Among the potential benefits of Iran’s membership, Lahouti referred to the development of employment and investment, neutralization of sanctions, removal of obstacles in the way of financial and economic exchanges and the preparation of grounds for the use of regional currencies instead of the US dollar.<br /> “To achieve these goals, the support and cooperation of private and public sectors as well as the public with the government is essential,” he added.<br /> According to the IEC chief, Iran has been an observer member of SCO since 2005, and by joining the organization as a permanent member, the country can hope to boost the level of foreign trade with member states such as China, Russia and India, as three major economic powers.<br /> “It will also be possible to firmly withstand the restrictions imposed by Europe and US against Iran's economy. However, it should not be forgotten that Iran's extensive interactions at different political levels with other countries should be put on the agenda as a strategic solution by Iran in the international arena,” he said.<br /> Stressing the significant weight of SCO at the international level, Lahouti stressed that four of the world's nuclear powers, namely Russia, China, India and Pakistan, are members of this treaty while China and Russia, which are among the five permanent members of the UN Security Council, are also the main pillars of the said agreement.<br /> “This is sufficient for any observer to understand why the Shanghai Cooperation Organization is important beyond a regional security organization,” he said.<br /> He added that Iran's role in the One Belt, One Road project and the 25-year cooperation document between Iran and China can also serve as a supplement to this agreement. <br /> “At the same time, by being a permanent member of this organization, Iran is also linked to the vast markets of SCO member countries and as a regional power, it can have positive economic interactions with these countries in various fields of trade, transit and energy. Considering that recently Iran became an observer member of the Eurasian Economic Union, participation in the Shanghai Cooperation Organization can complement the process for Iran to use the economic capacities of regional countries that account for 65% of the world's population and extensive global resources,” he said.<br /> Lahouti concluded that it is also important for SCO members to work with a power like Iran, which has vast resources for economic cooperation and is a bridge between East and West Asia as well as North and South. <br /> “Tehran's closer collaboration with the Shanghai Cooperation Organization and Iran’s more pronounced role on the Silk Road will be beneficial for all parties,” he said.</p> Saturday, July 22, 2023 https://financialtribune.com/articles/domestic-economy/119306/iran-china-h1-trade-hit-75b-chinese-customs Oil Prices Tick Up https://financialtribune.com/articles/energy/119305/oil-prices-tick-up <p> Oil prices crept up on Friday, buoyed by economic stimulus in slow-recovering China and falling inventories in the US.<br /> Brent futures were up 65 cents to $80.29 a barrel, while US West Texas Intermediate crude climbed 64 cents to $76.29 a barrel. Prices closed marginally higher on Thursday, Reuters reported.<br /> China's weak economic figures had kept a lid on prices through the week. <br /> The world's second biggest oil consumer this week posted disappointing growth in second-quarter gross domestic product, increasing the likelihood the economy will miss the government's 5% annual growth target.<br /> However, sentiments across commodity markets have picked up on hopes the central government would roll out stimulus measures. On Friday, Chinese authorities unveiled plans to help boost sales of automobiles and electronics to shore up its sluggish economy.<br /> Meanwhile, recent US data, including lower-than-expected inflation and moderating job growth, have convinced many investors and analysts the Federal Reserve's expected July rate hike will be the last of its current tightening cycle.<br /> In early July, Riyadh said it would extend a voluntary output cut of 1 million barrels per day into August, while Moscow said it would cut exports by 500,000 bpd in August.<br /> US crude inventories fell last week, supported by a jump in crude exports as well as higher refinery utilization, the Energy Information Administration said on Wednesday.<br />  </p> Saturday, July 22, 2023 https://financialtribune.com/articles/energy/119305/oil-prices-tick-up