The first FATF Plenary meeting under the US Presidency in Paris. October 19, 2018. (FATF)

August 11, 2020

Iranians currently anticipate the “economic breakthrough” that President Hassan Rouhani promised to announce next week while Iranian officials rejected hints about the possible approval of the bills that allow Tehran to join the Financial Action Task Force (FATF).

Iranian sources said Sunday that the government could pre-sale oil on the Energy Exchange market to provide liquidity that it needs to ease the load of the US sanctions imposed on the country.

In a cabinet meeting last Wednesday, Rouhani said important decisions had been made and would be announced “after the approval of the Supreme Leader” to bring about an “economic breakthrough.”

Iran’s Iktisad news website uncovered details of an economic plan, expected to be launched next week.

“It looks like the government plans to sell around 200 million barrels of oil in the exchange market to provide liquidity,” the website wrote.

In this regard, Fars agency said that if the price of oil at the time of delivery is higher than it was at the time of the prior purchase then its profits will go to the buyers.

“But, if the bond papers are less than the time of prior purchase, then the government would pay buyers the difference at the price of interest rate on long-term deposits,” the agency said.

Rouhani’s announcement led some Iranian media outlets to say that the good news is connected with the stock exchange market and the FATF laws.

FATF is a multilateral organization overseeing compliance with anti-money laundering and transparency banking rules and regulations.

The organization had asked Iran in 2017 to adopt legislation in support of financial transparency and against money-laundering and financing of terrorism.

For his part, Iranian Parliament Speaker Mohammad Baqer Qalibaf said parliament has put a people-oriented economy on its agenda for improving the country’s economy through a bill that supports the lower and middle classes of the society.

MP Elias Naderan wrote on his twitter account Sunday that the government promised financial breakthroughs in the next week, however, “experience shows that promises have not affected the middle and poor classes.”

Commenting on the speculations that linked Iran with FATF, Secretary of Iran’s Supreme National Security Council (SNSC) Ali Shamkhani said on Sunday that Western pressures cannot dissuade Iran from pursuing its main policies.

He said Tehran will resolve problems through active resistance and national solidarity.

“Preventing Iran’s strategic cooperation with the East and continued dependence of its national economy on oil [revenues] set the West’s core policy towards Iran,” Shamkhani wrote on his twitter page.

He underlined his country’s decision to pursue both policies of close ties with the Eastern block and independence from oil revenues, and vowed that his nation “will go past the existing challenges with active resistance and national solidarity”.

Asharq Al-Awsat

About Track Persia

Track PersiaTrack Persia is a Platform run by dedicated analysts who spend much of their time researching the Middle East, in due process we fall upon many indications of growing expansionary ambitions on the part of Iran in the MENA region and the wider Islamic world. These ambitions commonly increase tensions and undermine stability.