Iran reopens embassy in London, while FM Hammond at CBI in Tehran

Flag of the Islamic Republic flies again at the embassy at Kensington, West London in the UK

According to the Guardian:

Iranians celebrated the long-awaited reopening of their London embassy on Sunday with Qur’anic verses, soft drinks, expressions of florid goodwill and relentless hopes for a better future for the often stormy relationship between the Islamic Republic and the UK.

Taking its cue from the parallel ceremony in Tehran, the event at the Iranian ambassador’s residence in Kensington was long on formal expressions of mutual respect and short on matters of substance or contention.

Mehdi Danesh-Yazdi, one of Iran’s deputy foreign ministers, set the tone with a call for relations based on mutual respect and good faith. He also called for a new era of cooperation following last month’s landmark nuclear deal and the steadily improving atmosphere between the two governments since a 2011 attack on the British embassy.

British Foreign Secretary met with the President of the Central Bank of Iran IRNA-Tehran, "Philip Hammond," British Foreign Secretary Vhyat building Sunday afternoon with the central bank, "but Ali Saif," said the head of the Central Bank of the Islamic Republic of Iran was discussed.

British and Iranian officials present on 23AUG15 at the reopened Iranian embassy in London

Meanwhile, Iranian Foreign Minister Mohammad Javad Zarif (R) and his British counterpart Philip Hammond (L) shake hands during a joint press conference on 23AUG15 in Tehran.

British and Iranian officials present at a conference on 23AUG15 at the Central Bank of Iran in Tehran

According to Press TV:

Governor of the Central Bank of Iran (CBI) says two Iranian banks will start operating in Britain soon, increasing the number of Iranian banks active in the UK to four.

Speaking to IRNA following a meeting with the visiting British Foreign Secretary Philip Hammond in Tehran on Sunday, Valiollah Seif noted that the two banks include the London branch of Bank Melli Iran and the Persia International Bank.

Building of the Central Bank of Iran in Tehran, as seen on 23AUG15

Photos: Islamic Republic News Agency

Iran Inflation at 30%

The Central Bank of Iran (CBI) today reported that the country’s inflation rate for the 12-month period ending on 21 May was at 30.3 percent. (IRNA/Press TV, 8 June)

As high a figure the inflation rate is, it is actually an improvement over the inflation rate in the last few months of Ahmadinejad administration, which peaked at 40.1 percent in July 2013.

Inflation Rate at 39.3%

The Central Bank of Iran (CBI) announced today that the inflation rate for the twelve-month period ending in Iranian calendar month of Azar (December 23, 2013) was at 39.3 percent. (IRNA, 30 December)

File photo: CBI building in Tehran. (IRNA)

CBI Denies Zanjani Has Returned Oil Money – Growing Controversy

The Central Bank of Iran (CBI) announced today that Babak Zanjani, the notorious “sanctions broker” involved in the “private” sale of Iranian crude oil in the black market, has not returned any of the sales proceeds to the oil ministry’s account at CBI, Fars News Agency reported today. The central bank had said Zanjani owes the oil ministry billions of dollars. Zanjani had told reporters last week that he has repaid all that he owed.

The semi-official Fars News Agency reported today that a document presented by Zanjani to an investigating committee of Majlis showing that he had deposited funds at CBI was “forged.” The bogus document reportedly showed the funds were transferred to CBI through the central bank of Tajikistan. (Fars News Agency, 28 December)

Zanjani had become a successful “sanctions broker,” or what President Rouhani today called “sanctions profiteer.” He is the owner of a private company that had received huge allotment of Iranian crude oil to sell in the black market for cash. His company is believed to have close ties with the IRGC, who had received the original export permit from the oil ministry.

Rouhani today ordered an immediate investigation into sanctions profiteering. He said those who have taken advantage of special (anti-sanctions) concessions and privileges to enrich themselves would be identified and punished.

Zanjani has also been implicated in “gas-for-gold” scheme in Turkey. Reza Zarrab, the Iranian sanctions broker who was arrested in Istanbul last week, has told Turkish authorities that Zanjani was his “boss” and contact in Tehran.

To read an account of “gas-for-gold” scheme, please click here.

To read about Rouhani’s order, please click here.

File photo: Babak Zanjani, the “sanctions broker.” (IRNA) 

Iran Inflation Rate @ 40%

The Central Bank of Iran (CBI) announced today that the country’s inflation rate for the 12-month period ending on the last day of Aban (22 November 2013) hit 40 percent.

CBI Governor Valiollah Seif told reporters in Tehran that he will focus on curbing the runaway liquidity growth to bring down inflation. Rouhani administration has pledged to reduce the inflation rate to below 25% by 2015.

Iran's Inflation Rate Hits 39%

Up Over 5% in One Month

Central Bank of Iran (CBI) Governor Valiollah Seif has announced that the inflation rate for the 12-month period ending in Iranian calendar month of Mordad (August 22, 2013) hit 39 percent. (Mehr News Agency/Payvand, 7 September)

The new inflation rate released by the CBI represents a 5% rise in only one month [The central bank’s figure for the 12-month period ending Tir (July 21, 2013) was at 33.9 percent.] Saif also said that the CBI will attempt to regulate tighter liquidity while at the same time trying to get country out of recession.

Iran’s current economic situation where high inflation, low economic growth rate, and high employment coexist is often referred to as stagflation; a condition that raises a dilemma for the CBI since actions designed to lower inflation may exacerbate unemployment, and vice versa.

Photo credit: Central Bank of Iran (CBI) Governor Valiollah Seif (Younes Khani/Mehr News Agency via Payvand)

Rial Rises in Open Market

The Iranian currency, rial, strengthened on the open market today, trading at 33,400 rials a dollar. The new rate represents an 8.5% appreciation in relation to dollar since Rouhani’s victory in 14 June presidential election.

On Saturday, the Central Bank of Iran (CBI) devaluated the official rial rate by more than half, from 12,260 to 24,777 rials a dollar. The official rate is now closer to open market rate. The official rate is in fact a subsidized rate available only to selected importers of basic commodities and medicine. The great majority of importers and ordinary citizens are not eligible for the subsidized rate and need to purchase their dollars in open market.