Iran’s Currency Rises After Accessing Unblocked Funds In Oman
Iran’s currency, rial, rose against major currencies on Wednesday after reports last week said Tehran had used some of its unblocked funds kept in Oman.
Iran’s currency, rial, rose against major currencies on Wednesday after reports last week said Tehran had used some of its unblocked funds kept in Oman.
The rial broke through the psychological barrier of 500,000 per dollar, closing at 49,800 after a gradual rise this week. Although the change was around one percent, it was the first time since early October the rial broke through the 500,000 threshold.
The rial sharply strengthened in June when for the first time the United States offered Iraq a waiver for the release of $2.7 billion of Iranian funds frozen because of Washington’s sanctions. Later the waiver increased, allowing Iraq to send around $11 billion to Oman, where Iran can access the funds, presumably to import non-sanctionable goods.
Iraq imports gas and electricity from Iran but due to US banking sanctions imposed on Iran, could not pay its debt in hard currencies until this June.
The Biden administration released another $6 billion of Iran funds in September that was blocked in South Korea. Five American dual nationals were released from Iranian prisons in exchange for what some said was history’s largest ransom. It is not clear why the Biden administration released $11 billion from Iraq. A large part of the money was unblocked after the Hamas attack on Israel. Iran is the top financial and military backer of the Palestinian militant group.
The rial has fallen 12-fold since 2018, when the Trump administration withdrew from the 2015 nuclear deal with Iran and imposed ‘maximum pressure’ sanctions.
Johan Floderus, detained in April 2022 during a vacation in Iran on charges of espionage, is now navigating a legal process marked by little transparency and what appears to be a hostage situation. He has been in detention for more than 600 days.
Iranian officials vehemently slammed a Swedish appeals court for upholding a life sentence for Hamid Nouri, a former prison official who was convicted earlier this year for his role in the massacre of up to 5,000 political prisoners in 1988. The Swedish verdict upholding the sentence was announced on Wednesday, as Tehran used pressures and threats to influence the appeal decision.
Now, Floderus is accused of “corruption on earth”, a serious Sharia charge that can lead even to a death sentence. This particular charge is often used by the Iranian regime against pollical opponents. He is accused of espionage, but the case, as many other similar detentions of foreigners in Iran, is wrapped in a lack of transparency.
He was told in the court on Wednesday that "These accusations are based on intelligence surveillance by Iranian security forces, scrutiny of messages, emails, monitoring of your mobile phone, your travels to various countries, your presence in Iran's border cities, your communications, trips to occupied territories [Israel], and other pieces of evidence."
According to Iranian media, Floderus did not accept the allegations attributed to himself and emphasized: “The issued warrant has a general and abstract nature and has no direct connection with me."
Judge Iman Afshari also accused Floderus of having connections with Swedish military institutions, but this EU diplomat emphasized that after completing his 13-month military service, he had no ties to Swedish military, intelligence, or security institutions."
Iran’s foreign ministry and Judicial authorities have categorically rejected the Swedish appeal court’s decision regarding Hamid Nouri. Naser Kanaani, the foreign ministry spokesperson responded to the confirmation of the life imprisonment sentence for Nouri, saying, "Iran fundamentally finds the verdicts of the lower and appellate courts regarding Hamid Nouri unacceptable and strongly condemns them."
Kazem Gharibabadi, the Secretary of the Human Rights Headquarters of Iran’s Judiciary, threatened that “Sweden's actions in this regard will not be without cost.” He made a bizarre statement that “In this case, the English were also involved, and it was not a case solely decided by Sweden."
The Floderus case is similar to the conviction of Assadollah Assadi, an Iranian diplomat convicted for terrorism in Belgium but released in May after Iran detained a Belgian traveller and accused him of espionage. Aid worker Olivier Vandecasteele spent 455 days in Iranian detention facing an uncertain future until Belgium gave in and released the convicted Iranian official.
At the time, many warned that such a prisoner exchange would set a dangerous precedent for other Westerners. The Islamic Republic of Iran has a history of detaining foreigners and dual national to use the as bargaining leverage against Western countries.
