Iran's Currency Strengthening Amid Hopes For A Nuclear Deal
Iran’s battered currency has risen around 10 percent since its lows in early December when the market was gripped by pessimism over a possible nuclear deal.
Iran’s battered currency has risen around 10 percent since its lows in early December when the market was gripped by pessimism over a possible nuclear deal.
The rial rose to 275,000 against the US dollar in Tehran’s unofficial currency exchange market on Friday, after falling to 310,000 in the closing weeks of 2021.
Nuclear talks that started last April in Vienna have yet to result in an agreement, but some progress has been reported. Negotiators have returned to their capitals in what diplomats have said is the decisive stage of making tough decisions.
Iran’s currency began to fall in late 2017 as it became apparent that former US president Donald Trump wanted to withdraw from the 2015 nuclear agreement with Iran and impose sanctions. It continued to lose value as Washington began imposing sanctions in mid-2018 and so far, the rial has fallen eightfold against major currencies.
As the cash-strapped government printed more money the currency became weaker and annual inflation reached to more than 40 percent.
Although there is no definitive outcome in the nuclear talks, the rial began rising in January. One reason could be Iran’s higher oil exports despite US sanctions. By all indications, Tehran has been shipping more crude in the past months, although it is not clear how much foreign currency returns to its coffers.
The Pentagon has called Iran the central threat to the stability of the region, saying the top priority of CENTCOM is to deter the Tehran's malign activities.
CENTCOM Commander Gen. Kenneth F. McKenzie told the Middle East Instituteon Thursday that “Iran relies on proxies to do its dirty work funneling them arms and other resources with the expressed purpose of sowing discord and endangering human life”.
McKenzie said following the US strike that killed the IRGC’s Qods (Quds) commander Qasem Soleimani, “Iran largely confined itself to activities beneath what it perceives as the threshold of our forbearance, yet in so doing it has inflicted unnecessary suffering on its own citizens and those of its neighbors, all at the cost of innocent life and the risk of a devastating broader conflict.”
However, the Iran-aligned militia are more reckless now because the new Qods commander “does not exercise the same degree of control over them that Soleimani enjoyed”, increasing rogue and violent actions.
Following parliamentary elections in Iraq last October when Iran-backed politicians did not perform well, their militia supporters used violence to influence the formation of a new government, McKenzie argued.
He added that the conflict in Yemen has lasted so long only because of Iran’s support for the Houthis, noting that “the Houthis are less interested than Iran in waging a limited war.” Rather they recklessly use whatever the Iranians put at their disposal in pursuit of victory regardless of the risk to human life.
Iran executed “at least” 46 people in January, a steep increase on the same month in the past three years.
The Norway-based Iran Human Rights (IHRNGO) reported Thursday that 17 people were executed in Iranian prisons on drug-related charges and 21 for murder.The grounds were unclear in the remaining eight cases.
The number jumped from 27 the same month in 2021, 33 in 2020, and 36 in 2019. Fifteen of the 46 were Baluchi, a minority people living in Iran’s south east bordering Pakistan and Afghanistan.
The rights group said that only six executions were reported by Iranian media and officials, but that it had verified the other 40.
IHRNGO Director Mahmood Amiry-Moghaddam said “the international community” should “not turn a blind eye” to the wave of executions as talks continued in Vienna to revive the 2015 Iran nuclear agreement, the JCPOA (Joint Comprehensive Plan of Action).
“We reiterate that the international community must prioritize human rights, especially the death penalty, in any negotiations with the Islamic Republic,” Amiry-Moghaddam said. “Sustainable peace and stability are impossible without upholding human rights.”
Iran this week executed two gay men convicted on charges of sodomy who had spent six years on death row. A total of 299 people were executed in 2021, including four juvenile offenders, a 26-percent increase on 2020.
Iran may cooperate with China over information technology, the spokesman for the parliamentary committee reviewing Internet censorship legislation has said.
Lotfollah Siyahkali told Khabar Online that while agreements with China covering various aspects of the economy required parliamentary ratification, there would “probably” be agreement in “information and communication technology” (ICT).
An ad hoc parliamentary committee, called the Joint Siyanat Committee, is reviewing a draft bill on cyberspace regulation proposed to parliament in June, to further restrict access to various apps and websites.
Some of the bill’s supporters argue Iran should emulate China's in creating a national intranet. "The Chinese have unique and innovative experience in this field, which we can put to use," lawmaker Ali Yazdikhah said January 18.
"Passage of time proved that speculation over imitating the Chinese in Internet restriction are more true than other theories [such as using European models, which have generally aimed to extend non-digital rules into cyberspace]," the reformist Etemad newspaper wrote January 25.
China uses its ‘Great Firewall,’ a fortified digital border, to manage access to information entering and exiting the country through the Internet.
If passed, the legislation currently under review in Iran would require foreign and domestic social-media networks and messaging applications to register with a regulatory and supervisory body that would include representatives of intelligence organizations. The ministry of communications and information technology would be charged with blocking any social networks or messaging applications that failed to gain approval.
Lawmakers behind the bill, including the committee spokesman Siyahkali, want foreign social networks and messaging applications to designate a responsible Iranian company as their legal representative and to agree to abide by rules set by the regulator.
The Great Firewall
Iran has been heavily restricting access to the Internet for the past 20 years. Many foreign and Iranian websites, including media websites, are already blocked in Iran although controls are readily sidestepped by VPNs (virtual private networks) and anti-filtering software. While Instagram is the only major social-media platform not blocked in Iran, millions of Iranians use Facebook, Twitter, YouTube, and WhatsApp.
Despite China’s national intranet, the Chinese use various means, including VPNs, to circumvent restrictions.Tech Rader, the technology news and reviews website, recently recommended for visitors and residents the top five VPNs for piercing China’s ‘Great Firewall.’
Tehran in March signed a 25-year cooperation agreement with Beijing. It was launched during Foreign Minister Hossein Amir-Abdollahian's recent visit to China. With around 18 percent of the world’s population, China is home to 20 percent of Internet users globally.
An Iranian biology teacher has killed himself over what is described as financial pressures amid Iran’s 45-percent inflation rate.
The spokesman of teachers’ trade associations Mohammad Habibi said in a tweet on Thursday that Mostafa Ranjbaran was a high school teacher in the city of Minab in the southern province of Hormozgan, and described his death as another catastrophe for the community.
Habibi added that such suicides among teachers, workers, retirees, and students is a kind of systematic murder, saying the authorities of Islamic republic are responsible for the deaths.
In recent months, there have been other reports about teachers committing suicide due to financial problems, including Gholamabbas Yahyapour, a mathematics teacher from the city of Gerash in the Fars province who killed himself in September.
On Wednesday, a street vendor in the western city of Khorramabad set himself on fire after an argument with municipality who stopped his business.
Teachers held demonstrations in many cities this week to follow up on their demands for higher pay and release of their colleagues arrested in previous rounds of protests.
People from different walks of life, including nurses, firefighters, and even staff members of the judiciary department and prison guards, have held regular protest rallies or strikes to demand higher salaries.
Food prices have risen by more than 60 percent in recent months, on top of high inflation in the previous three years, while teachers earn less than $200 a month.
Israel's defense minister visited the US Navy Fifth Fleet's headquarters in Bahrain on Thursday amid heightened tensions following drone and missile attacks on the United Arab Emirates.
Israel's Defense Ministry said on Wednesday Benny Gantz would sign a security cooperation agreement with Bahrain, which along with the UAE normalized relations with Israel in 2020, partly out of shared concerns about Iran.
Bahrain hosts the Fifth Fleet's headquarters as well as some operations for CENTCOM, a US military coordination umbrella organization for the Middle East that Israel joined last year.
"Against a backdrop of increasing maritime and aerial threats, our ironclad cooperation is more important than ever," Gantz said on Twitter after the naval base visit.
Israel this week is joining a 60-nation US-led Middle East naval exercise alongside the UAE and Bahrain and, for the first time, publicly alongside Saudi Arabia and Oman, two counties it has no diplomatic relations with.
Israel's defense ministry gave no details of what a security accord with Bahrain would include.
Gantz flew to Bahrain for the two-day trip on an Israeli air force transport plane. It was the first time an Israeli defense chief had visited the Gulf nation or that an Israeli military aircraft had landed there.
The UAE on Wednesday said it intercepted three that entered its airspace over unpopulated areas in the fourth such attack in the past few weeks.
Report by Reuters
