Iran, Indonesia Agree on Mutual Settlements in National Currencies

Iran, Indonesia Agree on Mutual Settlements in National Currencies

    Wednesday, May 24, 2023   No comments

Iranian President Seyed Ebrahim Rayeesi said on Tuesday that Tehran and Jakarta have agreed to strengthen and expand economic relations and start trading in their national currencies in a bid to end the US dollar monopoly.

Rayeesi made the remarks in a joint press conference with his Indonesian counterpart Joko Widodo in Jakarta on Tuesday.

Iran's president, who is on an official visit to Indonesia at the head of a high-ranking politico-economic delegation, stated that Tehran and Jakarta have set a goal to promote the value of their trade to $20 billion.

He stressed that the both sides are resolute on promoting exchanges using national currencies in order to set aside the US dollar.

Several countries have stressed that they no longer have trust in the US currency because it has become an unreliable financial instrument.

The Iranian chief executive added that the signing of different documents for bilateral cooperation in various sectors reaffirms both sides' will to develop relations in all fields.

In the presence of Raeisi and Widodo, senior officials of Iran and Indonesia signed 11 documents to boost cooperation in preferential trade, cancellation of visas, cultural exchanges, supervision over the pharmaceutical products, science and technology as well as oil and gas.

Iran and Russia sign an agreement to build a railway line boosting the North-South Trade Route initiative

Iran and Russia sign an agreement to build a railway line boosting the North-South Trade Route initiative

    Thursday, May 18, 2023   No comments

Russian President Vladimir Putin and his Iranian counterpart, Ebrahim Raisi, witnessed via video link today, Wednesday, the signing of an agreement to finance and build a railway in Iran, as part of plans to establish an international transport corridor linking the north and south.

The railway line between the cities of Rasht and Astara is seen as an important link in the international corridor, which aims to connect India, Iran, Russia, Azerbaijan and other countries by rail and sea.

Russia says this corridor can rival the Suez Canal as a major route for global trade.

Putin said that the unique north-south transport route - of which the Rasht-Astara railway will become a part - will contribute to a significant diversification of global transport flows.

He added that the railway line - which extends 162 km along the Caspian Sea coast - will help connect Russian ports on the Baltic Sea with ports.

Iran bordering the Indian Ocean and the Gulf.

In turn, the Iranian president said that this agreement is undoubtedly an important and strategic step in the field of cooperation between Tehran and Moscow.

Western sanctions imposed on Russia and Iran have pushed the two countries to strengthen their political and economic relations, and both countries say the sanctions are unjustified.

Since 1979, the West has imposed numerous sanctions on Iran, which has about a quarter of the oil reserves in the Middle East, and its economy has been paralyzed. The West has also imposed another set of restrictions on the Iranian nuclear program, and imposed sanctions on Russia because of its war in Ukraine.

The agreement between Russia and Iran, with support from India, will make this initiative one that would compete with the Suez Canal, reducing the strategic importance of the Suez Canal and revenues for the Egyptian government. Aware of this connection between these trade systems, Egypt and Iran increased their low level talks to repair their diplomatic relations that have been downgraded since 1979.

The North-South Trade line is not isolated from the China-backed Belt and Road initiative, in fact it is seen as a complementing project. For that to be true, Pakistan must be integrated into this project. It is no coincidence then that the Iranian president, hours after signing the agreement with Putin, visited the border with Pakistan to emphasize two critical things: The integration of Pakistan into the Asia economy anchored by China and Russia and to address the security issue in the border with Pakistan, which recalls the increasing role now played by the SCO in regional security matters.

 

To these ends, Iranian President Ebrahim Raisi said today, Thursday, that he is in the process of implementing joint border projects between Iran and Pakistan. He added during a joint press conference with Pakistani Prime Minister Shehbaz Sharif in Sistan and Baluchistan province on the sidelines of the opening of the electricity transmission project to Pakistan that part of the border markets with Pakistan has not been activated so far, and its problems will be resolved during this visit.

He pointed out that his country's government will also follow up the implementation of economic and tourism projects and border transportation.

The Iranian president said: "We will take more field steps to exchange energy and electricity with Pakistan, in addition to energy exchange and the launch of a joint border market between the two countries."

He confirmed that 6 other joint markets are being planned to be launched soon. He added that today's meeting, with the participation of the Pakistani Prime Minister, carries an "important message that borders can contribute to enhancing security between the two countries."

He pointed out that Pakistan's security "is the security of the entire region, which is our security, and the presence of foreigners in the region will not solve its security problems."

Raisi also touched on the outcome of the American presence in Afghanistan, saying that this presence contributed to "killing, wounding, disabling and displacing many of the people of this country."

For his part, Sharif said that Iran and Pakistan are "two brothers and two friends who share a common culture and history."

He added, "Means of strengthening economic relations in the future were discussed," stressing: "We will overcome all challenges and difficulties to achieve this goal."

Earlier, Iranian President Sharif met at the Bish-Mand joint border, as the two sides discussed developing joint trade relations.

Raisi and his accompanying delegation arrived Thursday morning in the province of Sistan and Baluchestan to follow up on a number of development projects in the province.

During this visit, Raisi followed up on the progress made in the strategic project to develop the "Makran coasts", and the inauguration of the water pumping process in the "Kahir Dam" and the operations of extending water to a number of villages in this province.

He pointed out that the development of the province of Sistan and Baluchestan is one of the priorities of the government's plans, adding: "The plans and programs set for this province, especially the Makran region, will be followed up."

Upon his arrival at Konark Airport, Raisi noted that the beaches of Makran have a lot of "good potentials for the economy, tourism and maritime economy."

He added, "Thanks to the victory of the Islamic Revolution, good measures and steps were taken in developing the province and developing its tourism and economic potential."

He stated that one of the objectives of this visit is to meet Pakistani Prime Minister Shehbaz Sharif on the former borders of the city of Rask, and to follow up on planning economic projects, road tourism and infrastructure for the province of Sistan and Baluchestan.

media review: German companies expand their investments in China

media review: German companies expand their investments in China

    Wednesday, April 12, 2023   No comments

The New York Times reported that some German companies are expanding in China and are reluctant to leave the huge market they need to finance operations in Berlin.

The newspaper added, "At a time when Washington seeks to stifle economic relations with Beijing, two powerful engines of the German economy, Volkswagen and the chemical company (BASF), are expanding their huge Chinese investments."

Volkswagen, which has more than 40 factories in China, has announced a new effort to design models according to the wishes of Chinese customers, and will invest billions in local partnerships and production sites.

And BASF, with 30 production facilities in China, is pushing ahead with plans to spend €10 billion on a new chemical production complex that would rival in size its huge headquarters in Ludwigshafen.

As the American newspaper pointed out, "Across Germany, executives know that these investments run counter to efforts by the United States to isolate China economically. They argue that revenue from China is essential for their businesses to thrive and grow in Europe."

"The profits from China have allowed the company to offset losses from Europe's high energy costs and strict environmental rules," said Martin Brodermüller, CEO of BASF.

According to the New York Times, close trade relations are now under scrutiny in Berlin, at the behest of Chancellor Olaf Scholz, knowing that there was a political proposal to reset the country's relationship with China, its largest trading partner.

According to the newspaper, a study conducted by the Kiel Institute showed that “separation from China would be very costly for the whole of Europe, but in particular for Germany.” About 131 billion euros, and it may cost more, if China responds with other steps.

German President Frank-Walter Steinmeier had said earlier that Germany should "learn its lesson" from Russia's war on Ukraine. The lesson is that "we have to reduce our dependence on others, wherever we can". "This is especially true of China," he added.

Venezuela aiming to insolate its economy from western sanctions builds new ties with Iran and Russia

Venezuela aiming to insolate its economy from western sanctions builds new ties with Iran and Russia

    Sunday, April 09, 2023   No comments

A year after the inking of the cooperation agreement between the CEO of Iran’s SAIPA Automotive Group Mohammad Ali Teimouri and Venezuelan Minister of Transportation Ramón Velásquez at the venue of SAIPA Company in Tehran in order to produce Iranian cars in this country as joint venture (JV), Russia signs a transport deal with Venezuela.

Russia and Venezuela intend to create a shipping company to strengthen ties between Latin America and Russia. As part of the initiative, Moscow and Caracas plan to establish two transportation hubs to increase cooperation and establish a logistics chain. An intergovernmental commission has already decided to create such a company, which will be financed from public and private sources. The company could be registered in Sevastopol, St. Petersburg or Novorossiysk, and joint construction of ships is also planned.

New trade routes will greatly facilitate Russian exports to Latin America, since the region is actively interested in grain, sunflower oil and agricultural machinery from Russia. In turn, Russia will be able to import seafood and fruit at bargain prices. Venezuela will play the role of an operational center.

Shamkhani’s February activities are now being revealed: directing a foreign policy linked to long term economic security

Shamkhani’s February activities are now being revealed: directing a foreign policy linked to long term economic security

    Thursday, April 06, 2023   No comments

Media reports are now revealing that Iran’s top security official Ali Shamkhani and Russian President Vladimir Putin had extensive talks on de-dollarization of trade between the two sanction-hit countries during Shamkhani’s visit to Moscow earlier this year.

Iran’s semi-official Fars news agency covered the report after it was released late on Wednesday and said that the hours-long, off-the-record meeting between Shamkhani and Putin early February was mostly focused on initiatives to offset the impacts of Western sanctions on Iran and Russia, including efforts to ditch the US dollar from bilateral trade.

 It said the two had agreed that Iran and Russia could increase the share of other major currencies, including the Chinese yuan, the Emirati dirham and the Indian rupee, in their foreign exchange reserves.

 The report said that the agreement was a base for Shamkhani’s following consultations in China, the United Arab Emirates and Iraq to boost Iran’s access to international trade.

 Shamakhani had traveled to Moscow to attend a regional summit on Afghanistan. The former navy commander, who leads Iran’s Supreme National Security Council, then reached a deal in early March in Beijing with his Saudi counterpart Musaad bin Mohammed Al-Aiban to revive diplomatic ties between Iran and Saudi Arabia.

 Shamkhani also traveled to Abu Dhabi and Baghdad last month in visits that many said were aimed at boosting Iran’s economic ties with its two Arab neighbors.

 

Media Review: The world of the dollar reserve system is coming to an end

Media Review: The world of the dollar reserve system is coming to an end

    Wednesday, April 05, 2023   No comments

The American magazine "The National Interest" reported that "the American president said that the ruble will turn to rubble, and the French finance minister said that the Russian economy will collapse, but despite these statements, the sanctions did not result in any major tsunami of regime change."

And it reported that “the movement to (Eurasian) resource-backed currencies was accelerated by the United States’ recognition of the trend and its attempt to reverse it, ostensibly through the war in Ukraine,” noting that “the revolution in the economy is not Bitcoin, but rather resource-based currencies.”

She explained, “With the Russians capping the price of their gold, Russian investors were stuck with an undervalued ruble, forcing it to appreciate against the dollar. In the past six months, the ruble has strengthened steadily. Then Putin added the double whammy that buyers of Oil can be bought with rubles or gold.

According to her, "If they buy oil with gold, they actually get a discount on oil, which leads to increased pressure on the supply of gold, which raises the price."

Therefore, "the West's commitment to burning the ruble backfired, and the strengthening of oil prices had a reinforcing effect on the ruble. As a result, in the land of paper, Russia and China are now able to control gold and oil prices," she says.

"The world of the dollar reserve system is coming to an end, as domestic funds were artificially inflated by the West in order to buy the assets of the East cheaply, and now it is payback time for the East," The National Interest confirmed.

The magazine concluded: "The dollar is still the reserve currency. This seismic change will not happen overnight, but the seeds were sown," stressing that "the current banking crisis is a symptom of the weakness of the monetary system, and what is happening in the West is the gradual death of paper currencies."