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Walkingstick:  Mark Mobius Says Yuan, Indian Rupee, Rupiah Undervalued

December 16, 2015

Mark Mobius, chairman of the emerging markets group at Franklin Templeton Investments, talks about Asian currencies, economies and stocks. He speaks with Yvonne Man on Bloomberg Television’s “Trending Business.” (Source: Bloomberg)


http://www.bloomberg.com/news/videos/20 … ued-video-


Walkingstick:  Parliamentary Finance: 2016 budget will not raise taxes market prices
17/12/2015 01:55 |

Direction Press / Baghdad

He confirmed the Parliamentary Finance Committee member Majida al-Tamimi, Thursday, that the taxes imposed in the 2016 budget will not cause to raise prices in the market, indicating that it applied since the 2015 budget.

She said Tamimi, in a press statement that “the tax imposed in the general budget for 2016 will not cause to raise prices in the Iraqi market and thus will not affect the citizen,” adding that “this tax itself has been applied in the 2015 budget has markets witnessed then some changes.”

She parliamentary member of the Finance Committee that “going forward in the taxation law is” a temporary situation “because of the non-application of the customs tariff,” saying that it “would be eliminated from the budget after the application of the customs tariff directly.”

And the voice of the House of Representatives, on Wednesday, to approve the taxes Karat mobile Internet and by 20% in the budget of 2016.

It included Article 24 of the budget, taxes on cigarettes and alcoholic beverages increased by 100% and 25% on airline tickets and 5% on the import of cars.


KTFA Cont………

Walkingstick:  A member of the parliamentary economy stresses the need to activate the “law of customs tariff”

Economy and Tenders Since 12/17/2015 16:19 pm (Baghdad time)

BAGHDAD – scales News

He stressed the economic and investment commission member of the parliamentary proof Mamouri, Thursday, on the necessity of activating the law of customs tariff, and reducing waste Alsabbarh currency through import.

Said Mamouri, in a statement received / scales News / copy of “falling world oil prices, the detection of the wrong policies that were followed by previous governments to rely on the export of oil to support the general budget, and not to use the surplus funds in the formation of a production base, whether industrial or Agricultural “.

“The decline in oil prices led to a large deficit in the financing of the general budget, whether operating the mother of the investment, that causes us to immediately start finding alternatives and relying on Iraqi products service of goods, as well as Iraqi factories of cement, iron, steel and reduce import by activating the customs tariff laws and the protection of the local product, which reduces the waste in hard currency, which drains in the importation of products manufactured locally. ”

The member of the parliamentary economy to “The committee worked through a whole year and a big effort and was able to accomplish the amended investment law, which included significant concessions to activate this important sector and these privileges included industrial and agricultural sector and the production of consumer goods.”

He called Almamori government to “Send a private investment law in refining crude oil for adoption Iraq is lost annually billions of dollars in import of oil derivatives, taking into consideration that the establishment of oil refineries to achieve significant revenue for the state as well as to stop the import of oil derivatives.”

And called on the government to “reconsider its oil licensing rounds and that the bulk of the benefits of the oil customs go to manufacturers because of the high cost of a barrel produced by these companies with low oil prices, which makes the interest derived from the oil sector is very slim, so it must reconsider these contracts in order to achieve the benefit of the Iraqi state, “.anthy 29 / z 3

http://www.mawazin.net/%D8%B9%D8%B6%D9% … 9%8A%D8%A9


Walkingstick:   Are You Ready to Buy Bonds From Iran?

Iran hopes to raise hundreds of billions of dollars needed to repair its sanctions-hit economy, but first it must win over global investors who have shunned it.

Dec. 17, 2015 5:30 a.m. ET

Iran hopes to raise hundreds of billions of dollars needed to repair its sanctions-hit economy, but first it must win over global investors who have shunned it.

The Iranian government will likely offer at least $500 million in foreign-currency-denominated bonds to international investors in 2016, deputy economy and finance minister Mohammad Khazaee told The Wall Street Journal in a recent interview.

The sale would be intended as a litmus test of interest in Iranian debt, he said—a crucial step if the country is to attract the investment it needs in infrastructure and energy to boost economic growth.

“I think in 2016 we have to pull the trigger,” Mr. Khazaee said. “We have to test the market outside Iran.”

Iranian officials also are planning to set up currency-hedging instruments via a futures market for foreign investors who don’t want fluctuations in the value of the Iranian rial to hurt their returns, according to Mohammad Fatanat, the president of the Securities and Exchange Organization of Iran.

The possibility of an offering by the long-isolated country is a sign of how much the environment has changed since a nuclear deal in July. But the effort faces a number of hurdles, even beyond the political issues around investing in a country that the U.S. still associates with terrorism.

This year’s drop in crude prices has worsened Iran’s national accounts and drained money from the pockets of the Middle Eastern investors most likely to buy its debt. The decline also has spurred bond issues from regional issuers like Qatar and Saudi Arabia, both of which have a longer track record of debt sales and higher marks from ratings agencies.

Iran struck a deal with six world powers in July to curtail its nuclear-development activities. Related sanctions will be removed in 2016 if the deal moves forward as envisioned.

Concerns linger about Iran’s support for Syrian President Bashar al-Assad in his bloody campaign against rebel groups challenging his rule and for other groups including Lebanon’s Hezbollah, which has gone to war with Israel in the past.

Then there is the uncertainty about Iran complying with the nuclear deal’s provisions and the risk that sanctions could snap back into place if the nation doesn’t.

“People will look at the debt situation, but they’re going to have to get comfortable with some of these risks, which may not be prevalent in other countries,” said Abdul Kadir Hussain, chief executive of Mashreq Capital in Dubai.

Led by President Hassan Rouhani, Iran has managed to tamp down inflation and stabilize the value of its currency in the past two years. Money managers and economists think the country has a lot of economic potential. Its population of 80 million and gross domestic product of $400 billion make it one of the few large markets remaining untapped by global investors, said Charles Robertson, chief economist at London’s Renaissance Capital.

With foreign debt currently around 1% of GDP, Iran has plenty of spare capacity to borrow.

Richard House, the head of emerging-markets fixed income at the U.K.’s Standard Life Investments, said there could generally be a significant amount of interest in Iranian debt because the country​hasn’t issued bonds in a long time, though the timing now isn’t great. The debt of several first-time African issuers has performed poorly in 2015, and oil​prices are in sharp retreat.

“Given where oil is trading, it won’t be as easy for them to issue debt this time around, but there should definitely be interest again,” he said.

Iran sold €1 billion worth of euro-denominated bonds in 2002—its first and last foreign bond issuance since the 1979 Islamic Revolution. The nation paid off the five-year debt in full and on time.

Middle Eastern investors bought about two-thirds of that issue, with the rest absorbed by buyers in Europe.

Mr. Robertson estimated the debt issued this time would be rated below investment grade on par with bonds from Kenya or Nigeria, which Fitch Ratings has at B-plus and double B-minus, respectively. It would likely come with a yield of around 8%, he said—a high figure for a sovereign of Iran’s economic stature. Iran’s last bond came with an interest rate of 7.75%.

The rial has weakened—a dollar bought around 10,000 rials in 2011, but now buys roughly 30,000—and become extremely volatile during the sanctions era, posing problems for both foreign investors and Iranian trade partners.

“Our banks with their correspondent counterparts outside the country need a little time to get in touch again and our banking system to get back on track as it was before,” Mr. Fatanat said. “It takes a little time, but we are doing everything within our power to make it faster and to facilitate the process.”

http://www.wsj.com/articles/are-you-rea … 1450348201