US, Iran Differ over Tehran’s Frozen Assets

A panel displays currency rates in a market in Tehran, November 29, 2021. (Reuters)
A panel displays currency rates in a market in Tehran, November 29, 2021. (Reuters)
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US, Iran Differ over Tehran’s Frozen Assets

A panel displays currency rates in a market in Tehran, November 29, 2021. (Reuters)
A panel displays currency rates in a market in Tehran, November 29, 2021. (Reuters)

Tehran accused the US administration of waging a “psychological war,” a day after Washington denied releasing $3.5 billion of Iran’s frozen funds abroad.

“The United States has not released any money to Iran. Any such report to the contrary is incorrect,” State Department spokesman Ned Price affirmed.

“We also understand that our partners have not transferred frozen funds to Iran, not even South Korea,” he stressed.

“And of course, the US has not authorized or approved any such frozen transfers to Iran. All of our current sanctions remain in effect. They will remain in effect until and unless we’re able to reach a diplomatic agreement,” in Vienna.

Price’s remarks, which coincide with a new round of talks in the Austrian capital, are part of a “psychological war” against Iran, state TV quoted an informed source as saying.

These remarks “will not affect what has actually happened,” the source added.

One of the countries will soon release the frozen assets under the sanctions imposed by Donald Trump’s administration on Iranian oil sales, deputy Foreign Minister for Economic Diplomacy Mehdi Safari said on Thursday.

He added that $3.5 billion of Iranian assets have been released, noting that the government had requested other countries to release larger numbers

“Fruitful negotiations were held in this regard,” Safari confirmed, while declining to reveal the amount discussed.

In mid-November, the Central Bank said one billion dollars from the released funds would be allotted for the import of “essential goods.”

Meanwhile, the Iranian rial currency dipped last week but remained above historic lows after news that talks with world powers to revive the 2015 Iran nuclear accord may have run into difficulties.

The US dollar was selling for as much as 302,200 rials on the unofficial market on Saturday, up from 294,000 on Friday.

In October 2020, the rial hit a record low of about 320,000 to a dollar as a drop in oil prices deepened the economic crisis in the country already reeling under US sanctions and the highest COVID-19 death toll in the Middle East.



WTO Chief Okonjo-Iweala Reinstated for Second Term as Trade Wars Loom

World Trade Organization chief Ngozi Okonjo-Iweala (AFP)
World Trade Organization chief Ngozi Okonjo-Iweala (AFP)
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WTO Chief Okonjo-Iweala Reinstated for Second Term as Trade Wars Loom

World Trade Organization chief Ngozi Okonjo-Iweala (AFP)
World Trade Organization chief Ngozi Okonjo-Iweala (AFP)

World Trade Organization chief Ngozi Okonjo-Iweala was reappointed for a second term at a special meeting on Friday, the trade watchdog said, meaning her tenure will coincide with US President-elect Donald Trump's second administration.
Analysts expect the road ahead for the three-decade-old WTO will be challenging, likely characterised by trade wars with Trump, who returns to the White House on Jan. 20, threatening hefty tariffs on goods from Mexico, Canada and China.
Okonjo-Iweala, a former Nigerian finance minister who made history in 2021 by becoming the WTO's first female and first African director-general, announced in September that she would run again, aiming to complete “unfinished business.”
No other candidates ran against her and all of the WTO's 166 members agreed by consensus to a proposal to reappoint her.
Trade sources said the meeting created a means of fast-tracking her appointment process to avoid any risk of it being blocked by Trump, whose teams and allies have criticised both Okonjo-Iweala and the WTO in the past.
In 2020, his administration gave its support to a rival candidate and sought to block her first term. She secured US backing only when President Joe Biden succeeded Trump in the White House in January 2021.
President Joe Biden on Thursday warned against damaging relations with Canada and Mexico, after Donald Trump threatened to slap tariffs on both US neighbors when he takes office in January.
“I think it's a counterproductive thing to do,” Biden told reporters when asked about his successor's plan.
“The last thing we need to do is begin to screw up those relationships. I think we got them in a good place,” he said during a visit to a fire department in Nantucket, Massachusetts, where he is spending his last Thanksgiving holiday as president.
Trump sent jitters through global markets on Monday when he announced on social media that one of his first presidential actions would be to impose 25-percent tariffs on Mexico and Canada -- which share a free trade pact with the United States -- and add a 10-percent tariff on China.
Pledging that tariffs would only be removed from the US neighbors when illegal immigration and drug trafficking stop, he reaffirmed his intent to use trade as a cudgel against allies and rivals alike.
After expressing opposition to Trump's threats in a letter, Mexican President Claudia Sheinbaum spoke by phone with the Republican president-elect on Wednesday.
Trump claimed that Sheinbaum had agreed to “stop migration through Mexico, and into the United States, effectively closing our Southern Border.”
When asked about the dispute at her daily press conference on Thursday, Sheinbaum said: “I can assure you... that we would never -- we would not be capable -- of proposing that we were going to close the border.”
Biden on Thursday also talked about the importance of maintaining a working relationship with China.
“We've set up a hotline between President Xi and myself, as well as our military, a direct line,” Biden said, adding he was "confident" that his Chinese counterpart “doesn't want to make a mistake.”
“I'm not saying that he is our best buddy, but he understands what's at stake.”