The Iranian currency continues to improve … and Iraq will release frozen assets soon

MarketsTehranSaber Gul Amber02 May 2021FacebookTwitterWhatsAppShareImage

Money exchange in Iran / AFP

An exchange store in the Iranian capital, Tehran (AFP)+Line

The Iranian currency continues to improve under the influence of the optimism surrounding the indirect nuclear talks between Tehran and Washington in Vienna by the parties to the nuclear deal. While the Iranian Minister of Energy, Reza Ardakanian, revealed that Iraq will soon release the first batch of Iranian assetsfrozen by the US sanctions.

The value of the Iranian riyal rose during the exchange market transactions in Tehran today, Sunday, to 219 thousand riyals against one dollar, gaining about 945 riyals from yesterday’s trading, Saturday.

The Iranian currency also increased against the single European currency, registering 270,000 riyals to the euro. In a field survey of the “New Arab” in the foreign exchange markets in Tehran, it was noted that speculators and citizens are selling their foreign currencies in larger quantities than in previous days.

Hamid Reda, who works in the currency market, said that the main reason behind the decline in demand for currencies and the increase in supply is the “positive” news that comes from Vienna about the results of the nuclear talks, and talk about US approval to lift sanctions on vital economic sectors.

Reda added to “Al-Araby Al-Jadeed” that news of the possibility of releasing Iranian funds frozen abroad is the other reason that contributed to the reduction of foreign currency rates and the increase in the value of the riyal.

He continued that despite the rapid developments in the currency market, there is a cautious anticipation among money changers and speculators, awaiting confirmation of news from Vienna about the results of the

The parties to the nuclear agreement had concluded the third round of their talks in Vienna on Saturday, and delegations returned to their capitals for consultations, provided that the talks would resume next Friday.

In an interview with Iranian television, the head of Iran’s negotiating delegation in the Vienna talks, Abbas Araghchi, said that these discussions have become “more mature, and the differences and discussions have become more clear and transparent,” stressing that they are “moving forward despite the disagreements.”

Araghchi revealed that “according to the agreement reached so far, the sanctions that affected the economic sectors such as energy, industry, cars, insurance and ports should be lifted,” noting that there are differences over sanctions against Iranian entities and persons.

He added that “there is agreement to remove most of these entities and people from sanctions, and negotiations are continuing on this topic,” but he continued, “We cannot expect the date of reaching the agreement, but the form of the agreement will inevitably be in accordance with the positions of the Iranian regime, indicating that” the other party (America ) He has his positions, we have ours, and approximating the positions is not easy. “

The head of the Iranian delegation indicated that the talks had entered the stage of preparing the text in some areas, pointing out that this caused a very slow work in the negotiations.

Although the Iranian riyal recorded an improvement of about 20% after the start of negotiations in Vienna from April 2 to this day, this did not prevent the rise in commodity prices. energy

Iran is experiencing a difficult economic situation against the background of the comprehensive sanctions it is facing, which are described as historical and unprecedented, as they targeted all joints of the economy and did not exclude a sector since the withdrawal of the administration of former US President Donald Trump from the nuclear deal on May 8, 2018. 

 For his part, Iranian Energy Minister, Reza Ardakanian, revealed today, Sunday, after his meeting with his Iraqi counterpart, Majid Mahdi Hantoush, in the capital, Tehran, that Iran will pay from its frozen assets in Iraq, the first batch to import the Russian vaccine against the new Corona virus. 

Ardakanian said, according to the Iranian “IRNA” agency, that part of the Iranian dues to Iraq will be spent on the purchase of Russian vaccines, in coordination with Moscow.

He explained that the Iraqi Minister of Electricity’s recent visit to Iran came to hold talks on financial arrangements to pay dues for the export of Iranian gas and electricity to Iraq. 

The Iranian minister and his Iraqi guest did not disclose the amount of Iranian funds frozen in Iraqi banks due to US sanctions and pressure, but media reports had previously revealed that it amounted to about $ 5 billion. 

During the past three years, Tehran conducted negotiations with the Iraqi side to collect the proceeds of its energy exports to Iraq in cash, but it did not succeed in reaching a conclusion.


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