The governor of the central bank states that released funds will purchase non-sanctioned goods.
ISAMABAD: Iran’s central bank governor has announced that the United States has reinstated Iran’s frozen assets held in South Korea.
According to Mohammad Reza Farzin’s social media post on X (formerly known as Twitter), the bank payment will be used to purchase non-sanctioned goods.
His statement follows the Iranian foreign ministry’s confirmation that the release of billions of dollars from Iran’s assets in South Korea has commenced.
However, it remains uncertain how the republic intends to deploy the unblocked resources and financial assets.
“The competent authorities will allocate these resources to address the various needs of the country,” it stated.
Iran Accesses $7 Billion Frozen assets In South Korea For Humanitarian Trade
In his social media post, Farzin reveals that approximately $7 billion from Iran’s foreign exchange reserves were placed in South Korean banks during the late 90s, without accruing any interest.
He further states that even during this period, about one billion dollars of it experienced a reduction in value due to the weakening of South Korea’s won against the dollar.
Farzin goes on to explain that the expenses related to converting the funds from South Korea’s won to euros would be covered by a “third country.”
As part of the plan, all these funds are slated to be transferred to the accounts of six Iranian banks in Qatar. The ultimate purpose of this transfer is to utilize the funds for purchasing non-sanctioned goods through a bank payment.
“The rest of these resources, in case of a deposit, will be subject to receiving bank interest. Iran’s foreign exchange resources will be available in several other countries soon, and its news and effects will be seen in the market and trade exchanges,” it stated.
Media reports indicate that White House spokesperson John Kirby emphasized that Iran’s access to the funds is limited. He said Iran could only access the funds “to buy food, medicine, medical equipment that would not have a dual military use.”
The deal, as underscored by US Secretary of State Antony Blinken, does not entail any sanctions relief for Iran.
