Mokhber Emphasizes the Release of Blocked Dollars; 'News Therapy' Did Not Control Dollar Prices

In recent days, as criticisms of the government over what has been termed 'news therapy' have intensified, the First Vice President of Ebrahim Raisi stated: 'Blocked funds in some countries have been released, and the process of releasing from some countries has also begun.' Mohammad Mokhber claimed that inflation started to decrease in Farvardin and Ordibehesht and will see further reduction in Khordad. The repeated emphasis on the release of Iran's blocked dollars in recent years has faced criticism from economic activists and media. Many have labeled this approach as 'news therapy,' and the newspaper Shargh reacted on Khordad 10 to reports related to 'the release of Iran's blocked funds in South Korea and Iraq,' stating that these are news items that have repeatedly appeared in the media and have been denied or contradicted by other reports. The start of 'news therapy' was during Rouhani's administration by Abdolnaser Hemmati, the then-head of the Central Bank, who on January 13, 2021, said that the South Koreans were offering 'the sale of ambulances and COVID-19 testing kits to the Iranian team' for the seven billion dollars of Iran's blocked funds. On February 1 of the same year, Hemmati again told state television that negotiations regarding the release of blocked funds began in 2018 but remained fruitless due to U.S. pressures. The issue of releasing blocked dollars reached Ebrahim Raisi's administration, and in the past two years, various officials have repeatedly reported access to blocked dollars in South Korea and Iraq. According to multiple reports published in recent weeks, access to the blocked funds by the Islamic Republic will ultimately be a 'conditional' action, but the main issue, according to analysts, is the type of access and the spending of these dollars. In this regard, on April 25 of this year, a spokesperson for the U.S. National Security Council told the Persian section of Voice of America regarding the seven billion dollars of Iran's blocked funds in South Korean banks that Iran can use these amounts for 'purchasing humanitarian items.' The Persian section of Voice of America had previously asked the White House whether the U.S. government considers this seven billion dollars and other Iranian assets held by other U.S. allies and partners as effective bargaining tools that could facilitate or achieve the release of detained and imprisoned Americans in Iran. In response to that question, a White House spokesperson stated that the aforementioned funds are kept in a 'restricted' account that is 'accessible for humanitarian trade.' He emphasized that the United States welcomes recommendations from South Korea and others to ensure that these amounts 'are used for humanitarian purposes, including through transfers to other trusted banks and in similar restricted accounts.' The statements of this U.S. State Department spokesperson and economic activists inside Iran regarding Iran's lack of access to dollar bills have caused the trend of what has been termed 'news therapy' in Iran to reverse, and the dollar rate, after falling to the 47,000 tomans channel, has approached the 50,000 tomans mark. The dollar rate in the Tehran market at the time of this report on Khordad 24 was 49,750 tomans. Reza Ghaibi: The release of blocked funds will only occur with a specific mechanism and for designated goods. Confirmation of the news 'allowing Iran to access part of the blocked funds in Iraq.' Claim of '20 billion euros' investment in Iran; Siamak Ghassami: The 'news therapy' project continues. Repeated promises from Islamic Republic officials for the release of oil dollars; news that is continuously announced and denied.