Release of its blocked assets in S.Korea to trigger decline of Iran's foreign currency rate
BAKU, Azerbaijan, Jan.13
The release of Iran's $7 billion worth of blocked assets in South Korea, will trigger the decline of the foreign currency rate in the Islamic Republic, the country's president Hassan Rouhani said, Trend reports via ILNA.
"If the Central Bank of Iran had access to these $7 billion, the foreign currency rate would drop from 240,000 rials to 150,000 rials," he said.
"The current foreign currency rate is not real but the Central Bank's hands are tied, however we are able to provide USD to the free market whenever necessary. But there are limitations for remittances, yet the situation looks better compared to the past two weeks," Rouhani said.
"The increase of national currency value is very important. This issue is considered by the government in drafting the budget bill for the new Iranian year (starts March 21,2021), he said.
"While the free market USD rate is 230,000 rials, the government has predicted it will be 120,000 rials per US dollar in the budget bill," he said,"
The South Korean-flagged tanker seizure by Iran's Revolutionary Guard in the crucial Strait of Hormuz came as Iranian officials have been pressing South Korea to release some $7 billion in assets tied up in the country's banks due to US sanctions.