Rial Gains Amid Reports South Korea, Iraq May Return Funds

Date: 07 January 2022 - 22:15

News ID: ۹۸۶۰۰

TEHRAN – The Iranian rial has regained part of its value against major international currencies after reports suggested that South Korea, and Iraq are accelerating efforts to release Iranian funds blocked in the country because of U.S. sanctions.
The rial closed at 288,000 against the US dollar on Thursday, up nearly 4% from a day earlier and firmer against near record-low prices reported in early December.
The news released indicates that Iran’s financial resources blocked in the two countries will be released soon.
The rial closed at 288,000 against the U.S. dollar on Thursday, up nearly 4% from a day earlier and firmer against near record-low prices reported in early December.
The spokesman for the Iraqi Ministry of Electricity Ahmad Musa has recently announced that the Iraqi Ministry of Electricity is ready to pay off all of Iran’s dues and will soon deposit them in the credit fund of the Commercial Bank of Iraq.
In the same direction, Choi Jong-kun, a senior South Korean official, left for the Austrian capital Vienna to discuss Iran’s assets blocked in South Korea.
Earlier, the Korean Yonhap news agency reported that South Korea’s deputy foreign minister traveled to Vienna to resolve the issue of Iran’s frozen assets in South Korea.
South Korea’s debt to Iran for the import of gas condensate is estimated at about $7 billion which has not been paid since 2018 under the pretext of US sanctions imposed against Iran.
Experts believe that the travel of a senior Korean official to Vienna to settle previous accounts of this country could indicate significant progress in the negotiation process in line with clinching an agreement.
The surge came after reports said that a high-ranking delegation from South Korea had travelled to Austria to hold talks with parties to negotiations meant to revive a 2015 Iran nuclear deal.
The reports said the trip had relayed a signal to the forex market in Iran that Seoul is preparing to release around $7 billion owed to Tehran for oil imports in the past. The funds have remained frozen in two bank accounts in the country because of U.S. sanctions.
Iran’s deputy foreign minister Ali Bagheri Kani said on Thursday after a meeting with his South Korean counterpart in Vienna that Tehran expects Seoul to immediately release the funds regardless of what happens to efforts revive the nuclear deal.
Iranian economic news websites said the presence of South Korean delegation in Vienna and other reports suggesting that Iran and world powers could reach an agreement to revive the nuclear deal had positively impacted the currency trade in Tehran and led to a fall for US dollar.