Iranians Withdrawing Financial Reserves From Europe

Discussion in 'Current Affairs, News and Analysis' started by Not_Whistlin_Dixie, Jan 20, 2006.

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  1. The Iranian custodians of the nation's foreign exchange reserves are apparently anticipating a risk that their European accounts could be blocked. They are acting accordingly:

    Iran's central bank governor said the country had begun withdrawing assets from European banks, the Iranian Students News Agency reported.

    ...

    "We transfer foreign currency reserves related to all sectors including oil foreign exchanges to wherever it is good for us and we have started this transfer," the agency quoted [Iranian Central Bank governor Ebrahim Sheibani] saying.

    "Iran has started withdrawing money from European banks and transferring it to other banks abroad, " a senior Iranian official told the Reuters agency.

    It was not immediately clear where the assets were being moved to, although reports have suggested that Iranian funds could be heading out of Europe to Asia.

    Iran's assets in the US were frozen after the revolution of 1979, which saw the pro-Western Shah toppled and a clerical regime installed in Tehran.

    It is difficult to estimate the amount of assets that Iran has abroad, but the Asharq Al-Awsat Arabic daily said that about $8bn (£4.5bn) had already been moved, mainly to Asian markets.

    Other sources have put the total value of Iran's foreign assets at somewhere between $30bn and $50bn.


    Iran 'moves assets out of Europe' 20 January 2006
    http://news.bbc.co.uk/2/hi/business/4632144.stm
     
  2. Ref: WWC/ WWA/A23/004

    Dear Persian Friends,

    I am Mr.Liang Lei, Executive Director of WANWA EXPORT LIMITED.We are a group of business men who deal on import and export of raw materials into the Canada/America and Europe. We are searching for representatives who can help us establish a medium of getting to our customers in the Canada/America and Europe as well as making payments through such representative to us.

    If you are interested in transacting business with us, we will be very glad.Please contact us for more information.Subject to your satisfaction you will be given the opportunity to negotiate your mode of which we will pay you for your services as our representative for Canada/America and Europe.

    Please do show your interest by forwarding to us your: 1: Full Names 2: Phone numbers/fax 3: Your full contact address.

    We thank you in advance for your time.

    Yours Sincerely
    Mr.Liang Lei
    Executive Director

    8)
     
  3. Al Capone is reputed to have said Men with Briefcases steal more then men with guns.
    Johnwilly says Western bankers are more Onest crooks then Easter bankers.
    john
     
  4. It would be interesting to know if they're putting money into Chinese banks. (Because they've got fcuk-all chance of ever seeing it again if they are.)

    Odd thing is that the Asian banks are buying up US T-Bills. In the other words, in the event of war, the US may actually end up ultimately borrowing money from the Iranians to pay for it all. It's all rather perverse when you think about it...
     
  5. Banking was until the recent "Drugs" industry the most profitable way of making money.
    Money is made on loans, and the intrest is where the profit cums from.
    In established 'Western' Banks you can only loan out a certain % of the money you hold. This is normally governd by the law of the country.
    I do not know what the figure is but lets say you must hold 50% so can loan 50%.
    Eastern bank either never had such laws or more likely never enforced them. They would loan 70% placing themselves in a dangerous position if big withdraws where made by depositors.
    Eastern banks where very profitable but extreamly vunerable in event of a downturn. Eastern Financial crisis of 97 is an example. Japan had problems over Non Performing Loans for the last 20 years, Non Performing Loans where loans made to X and it where never expected to be repaid.
    john
    Bankin 101
    Head down and dug in awaiting incomming.
     
  6. See also: Chinese banks.

    Pretty much everybody should be aware that there are huge building programmes in China- a big economic boom going on, right? Only trouble is that most of those big shiny buildings you see going up in Shanghai etc. are empty. Nobody is paying rent- the investment cannot be returned.

    Here's where it gets tricky. Under WTO rules China has to eventually open up its banking system so that foreign banks can do business there. (Deadline is around 2009. IIRC) There are lots and lots of Chinese people- agreed? Chinese people really like saving their money, especially this burgeoning middle class on which the CCP relies. Now, think about what could happen once foreign banks, that offer better rates of return, start doing business. Lots of Chinese go to the state banks to get their money back- and it isn't fcuking there... what happens next?
     
  7. Excuse me for talking in basic terms on the matter. I am no Expert on Finance.
    There are big problems in the pipeline out here now and it's just a matter of time for a repeat performance of 9 years ago.
    I agree 100% China is growing far too fast and the system will kick back and the world will have a hickcup.
    I know a banker via the net and he used to pass on serious comment on finance out here.
    He has now gone quite and its suspected that something big is going to happen this year.
    Where I live the PM has just sold his Mobile Telephone Company a big earner. Happened very quick this weeks news top story. I was told by a local businessman three weeks ago he was trying to sell.
    john
    I know personally two Frangs (Westerners) who where invited down the ministry for a chat. One an internationally know Jurno and the other a website owner.
    Both for the written word on matter not complementary to the system out here.
     
  8. Hmm. Well I get the Stratfor newsletter and for a while now they've been saying China's likely heading for a big fall. Couple that with persistent reports of low-level civil unrest in parts of China (usually local peasants p1ssed off with CCP bigwigs screwing them over) and you get quite an alarming picture. So how does China distract the masses in the event of a major downturn?
     
  9. Not sure, but it will probably involve one of the following;

    1. Free bootleg iPods
    2. Baby pandas
    3. Balloon animals
    4. A Chinese version of Pop Idol
    5. An invasion of Taiwan

    :twisted:
     
  10. China has special internal security Battalions, a mixture of police/army trained and they deal with serious outbreaks of pesant unrest.
    The eastern coastal belt is creating wealth at an unsustainable rate. The western and inland regions are stil on the less that 1 $ a day economy and are providing a massive reserve of cheap labour. The old cheap ecomomies of the orient are screaming foul.
    Many of the western states have a large Muslim population. Chinese muslims tend to be quieter then their Mid East nieghbours and are well use to the state trampling on them in past violent insurections. They might get 'troublesome' but they know the central government will not Pussyfoot with them.
    Where I live there are many Chinese muslims who's ancestors came here long ago and they are no problem compare with the Islamists next to Malaysia.
    I know bisinessmen who have a history of doing trade in China and they are of the opinion if China is left to it's own devices then it will remain non agressive and say that the Chinese do not have a history of exspansionism. (Tibet Tiawan are considereed traditional China) I have a friend in Brit embasy who is knowledgeable but he will not disscuss the subject of China these days, which makes me think it's becomming a more sensative area.
    Thai Chinese dominate where I live and the thinking is Business is their main intrest. Syemour Stirling wrote a book on overseas Chinese and his line was that as China has it frequent internal problems more and more chinese leave and settle eleswhere just to get on with business.
    For the Western Chinese pesant just scraping a living is hard work. Things are much better now under the current administration then in Mao's day.
    john
     
  11. I really don't think the Tibetans see themselves as 'traditionally part of China'.

    How far would the PRC go to protect ethnic Chinese communities in the region? I'm thinking oin particular of the anti-Chinese riots in Indonesia a few years back.
     
  12. From the Associated Press.

    "Swiss officials were tightlipped over whether Iran's move might include Switzerland, which is not part of the European Union, or if it meant more Iranian money might be on the way. Peter Westin, chief economist for Moscow investment bank MDM Bank, said that Iran's good relations with Moscow made it a possible destination for Iran's foreign currency reserves.

    "'In that sense Russia is a good option,' he said.

    "Spokesmen for the Russian Central bank were not available Friday evening."

    To protect its assets, Iran moves funds out of Europe

    Ali Akbar Dareini
    Jan. 21, 2006 12:00 AM
    http://www.azcentral.com/arizonarepublic/news/articles/0121iran-europe21.html

    Free samovar with all new accounts over $10 billion?
     
  13. Would you trust Putin with your hard earned money ? I wouldnt. Switzerland is their best option in Europe.
     
  14. Andy I don't suppose The Tibetans see themselves as Chinese, but I am assured that China considers Tibet as part of old China.
    Some years ago the National Geographic did an exstensive artical on what China considers Her Sphere of Influeance.
    With few exceptions, it is all of what we Brits would cosider as The Far East.
    I do not have access to this artical but perhaps some more skilled board member can track it down.
    I am not qualified to comment on China's attitude to their ex pats and hope that during comming week I will see some of my sources.
    As for destination of Iranian wealth, well er Putins Roosha shurely no ones that crazy for Roosha has long coveted accsess to a warm blue water port. And the Swiss very good at holding other folks money as the Jewish survivors from the Holicust would tell.
    john
    Folks know where they stand with British Banking crooks.
     
  15. Maybe Mr. Ebrahim Sheibani got "the phone call?"

    From Deutsche Welle:

    Iran on Saturday denied it has shifted funds out of Europe due to fears of economic sanctions over its nuclear program after a swirl of contradictory reports on whether such transfers had taken place.

    A deputy central bank chief categorically denied that Iran was moving foreign currency out of Europe to Southeast Asia. The comments appeared to flatly contradict previous reported remarks by the bank's president.

    "At the moment, Iran does not have any schedule to transfer its foreign exchange accounts to the named countries," Mohammad-Jafar Mojarad told the state news agency IRNA when asked if Iran has transferred the accounts to Asia.

    The head of the central bank, Ebrahim Sheibani, had reportedly said on Wednesday that Iran was moving funds from Europe elsewhere after Western demands to freeze Iranian assets as a result of the conflict over Iran's decision to resume nuclear research.

    ...

    Sheibani himself, however, on Saturday rejected the idea that such transfers had already taken place, even though he left the door open for such a possibility in the future.

    "We will transfer Iran's foreign accounts whenever we believe it is necessary," Sheibani told state television.


    "Iran Denies Shifting Assets From Europe" 21 January 2006
    http://www.dw-world.de/dw/article/0%2C2144%2C1864047%2C00.html