Iran to have access to $6.7 billion of its IMF funds

By Al Mayadeen English
Source: News websites
1 Jun 2023 16:29

Central Bank of Iran (CBI) Governor Mohammad Reza Farzin explains that Iran could soon have access to $6.7 billion of its funds at the IMF.

A man walks past the Central Bank of Iran in Tehran, Iran August 1, 2019. (AP)

On the margins of his discussions with senior IMF officials in Washington, DC, Central Bank of Iran (CBI) Governor Mohammad Reza Farzin revealed that Iran would soon have immediate access to $6.7 billion of its financial resources held by the International Monetary Fund (IMF).

According to the CBI Governor, Iran has acquired, at this time, Special Drawing Rights (SDRs) worth 4.8 billion, or $6.7 billion, and these funds may be used right away to help boost the nation's economy.

Farzin explained that the IMF provided liquidity named "SDR Allocation, Special Drawing Rights" during various periods when the world economy experiences recession in order to support its member nations navigate the economic decline.

The CBI governor also urged the IMF to promote the development of global banking programs for the promotion of trade and economic ties.

It is worth noting that Iran has money in international banks worth tens of billions of dollars that Tehran cannot access because of US sanctions.

The majority of the money has been stored in banks in South Korea, Iraq, China, Japan, and India. Iran has been owed money for supplies of crude oil and other energy items made prior to the US imposing sanctions against Iran.

US seeks Omani mediation for Iran nuclear program deal: Axios

The Senior Middle East advisor to US President Joe Biden, Brett McGurk, traveled to Muscat on May 8, ensuring that the trip remained low-profile, in order to examine with Omani authorities prospective diplomatic outreach, in the shape of an Omani mediation with Iran about its nuclear program, according to five US, Israeli, and European sources, as reported by Axios.

McGurk's Muscat trip followed a series of trips that started in Saudi Arabia wherein the Middle East Advisor was accompanied by Jake Sullivan, the White House National Security Advisor, Axios reported, citing four Israeli and US officials as saying that the Riyadh trip was succeeded by a trip to "Israel".

According to the outlet, the two US advisors flew to "Israel" to allegedly brief Israeli Prime Minister Benjamin Netanyahu on US talks in Saudi Arabia.

This was significant because previously, the Biden administration expressed grave concern regarding advances in Iran's nuclear program, which the US claimed could be a cause for regional military escalations.

Earlier in April, Axios had also reported that a possible proposal for an interim agreement with Iran was discussed between the US and its European and Israeli allies. Such a proposal would include partial sanctions relief in exchange for Iran agreeing to freeze parts of its nuclear program.

“The Omanis are holding proximity talks between the US and Iran," a senior Israeli official told Axios. This meant that the shuttle mediation went through Oman, and the two parties did not have to meet face-to-face to conclude the agreement.

According to Axios, there was a clear interjection by a US official on comments made by another Israeli official, and the EU official attempted to calm the situation.

“The Americans want a time out," a senior Israeli official told Axios before he was interjected by a White House National Security Council spokesperson who argued that “there is no US discussion of an interim deal and no discussion of sanctions relief, or closing safeguards cases."

At that point, a senior European diplomat told Axios that the "US is working with the Omanis on the Iranian issue," and the White House NSC spokesperson refused to comment on regional diplomacy topics "of which Iran is one aspect."