Monday, February 4, 2013

Eye on Iran: Iran Rial Hits 'All-Time Dollar Low'







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AFP: "Iran's currency plummeted to an all-time low on Saturday, registering a more than 21-percent drop in a span of two weeks against the US dollar, currency tracking websites and money changers said. The rial was traded at between 39,000 and 40,000 per dollar on the open market on Saturday, down from about 33,000 two weeks ago, according to money changers contacted by AFP. It had briefly dropped in late January to 37,000 per dollar amid rumours that central bank head Mahmoud Bahmani could be sacked because of his failure to shore up the rial. The devaluation comes with Iran facing a growing shortage of foreign cash because of international sanctions against its central bank and vital oil sector over its disputed nuclear programme. Uncertainty over stalled negotiations with the UN's atomic watchdog agency and world powers over the nuclear standoff has added to controversy over the rial, according to local media. The currency was traded at 12,000 in late 2011, prior to the introduction of tough Western sanctions on Iran's oil and banking sectors." http://t.uani.com/14M0NH3

Reuters: "Iran said on Sunday it was open to a U.S. offer of direct talks on its nuclear program and that six world powers had suggested a new round of nuclear negotiations this month, but without committing itself to either proposal... Iranian Foreign Minister Ali Akbar Salehi said a suggestion on Saturday by U.S. Vice President Joe Biden that Washington was ready for direct talks with Iran if Tehran was serious about negotiations was a 'step forward'. 'We take these statements with positive consideration. I think this is a step forward but ... each time we have come and negotiated it was the other side unfortunately who did not heed ... its commitment,' Salehi said at the Munich Security Conference where Biden made his overture a day earlier. He also complained to Iran's English-language Press TV of 'other contradictory signals', pointing to the rhetoric of 'keeping all options on the table' used by U.S. officials to indicate they are willing to use force to keep Iran from obtaining a nuclear weapon. 'This does not go along with this gesture (of talks) so we will have to wait a little bit longer and see if they are really faithful this time,' Salehi said." http://t.uani.com/WLOT9K

WSJ: "Iran's foreign minister, Ali Akbar Salehi, told world leaders on Sunday that Tehran was prepared to resume negotiations aimed at curbing its nuclear program this month in Kazakhstan, potentially ending eight months of stalled international diplomacy. But U.S. and European Union officials said in interviews following Mr. Salehi's speech in Munich that they were skeptical Tehran would follow through with his pledge, given the nation's recent history on the issue. They also said his government has yet to formally commit to sending a delegation to Astana on Feb. 25. European Union Foreign Secretary Catherine Ashton proposed the date and location to Iran's government in a letter sent last month, but hasn't received a reply, her spokeswoman confirmed late Sunday... U.S. and European officials said Sunday that they were cautiously optimistic that Tehran would formally announce its attendance in Kazakhstan through a letter to Ms. Ashton in the next few days. But there was also skepticism in Washington and Brussels that Iran was committed, or capable, in the coming months to engage in substantive talks aimed at eliminating Tehran's ability to produce nuclear weapons." http://t.uani.com/12mVsq8
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Nuclear Program

AFP: "US Vice President Joe Biden on Friday warned Iran that opportunities for diplomacy over its disputed nuclear programme were not unlimited but offered direct talks between Washington and Tehran. In an interview with the German Sueddeutsche Zeitung daily, Biden said the 'burden of proof' that Iran was not seeking a nuclear weapon lay with the authorities in Tehran. 'President (Barack) Obama has made clear that containment is not an option. We will prevent Iran from getting a nuclear weapon,' Biden was quoted as saying in remarks published in German. 'We think there is time and space for diplomacy -- accompanied with economic pressure. But this window will not be open for an unlimited time,' he added. He said Tehran could expect continued sanctions and increasing international pressure over its disputed nuclear drive, which Iran insists is entirely peaceful." http://t.uani.com/11Br8rP

Reuters: "Iran could be able to make thousands of next-generation uranium enrichment machines, according to a former chief U.N. inspector, adding credibility to Tehran's claims of technical advances in its disputed nuclear program... Olli Heinonen, until 2010 a deputy director general of the U.N. nuclear agency, said Iran had started purchasing special materials needed for manufacturing new centrifuges years ago when the sanctions on the country were not as strict as now. It was not clear how many of the upgraded centrifuges Iran aimed to put in place at its enrichment Natanz plant, which is designed for tens of thousands of machines. But the wording of a note by the International Atomic Energy Agency (IAEA) to member states last week implied it could be as many as 3,000. 'There are reasons to believe that it (Iran) can manufacture those 3,000 IR-2s,' Heinonen told Reuters in an email at the weekend, referring to a centrifuge which is estimated to refine uranium several times faster than those Iran operates today... If Iran has mastered the more modern model, it 'could dash to a bomb considerably more quickly,' said Cliff Kupchan, Middle East director at political risk consultancy Eurasia Group." http://t.uani.com/Yx138L

Reuters: "President Mahmoud Ahmadinejad said on Monday he was ready to be the first human sent into orbit by Iran's fledgling space program, Iranian media reported. Iran declared last week that it had successfully launched a monkey into space and retrieved it alive, which officials hailed as a major step towards their goal of sending humans into space. The launch added to Western concerns about Iran's space program because the same rocket technology could potentially be used to deliver a nuclear warhead on a ballistic missile. 'I am ready to be the first human to be sent to space by Iranian scientists,' Ahmadinejad said on Monday, on the sidelines of an exhibition of space achievements in Tehran, according to the Mehr news agency. 'Sending living things into space is the result of Iranian efforts and the dedication of thousands of Iranian scientists.'" http://t.uani.com/Wm4ZZn

AP: "President Barack Obama may have to decide this year whether to use military force to fulfill his vow to prevent Iran from being able to build nuclear weapons, foreign policy experts say. But America's economic and military realities argue intensely against attacking the Islamic republic and for muddling through by, perhaps, further tightening sanctions that have cut deeply into Tehran's economy. Americans are weary of war after more than a decade of military involvement in Iraq and Afghanistan. The U.S. economy, while recovering from the Great Recession, still is weak. The military could face deep cuts this year as Congress considers massive reductions in government spending. What's more, Iran is far stronger militarily than either Iraq or Afghanistan and would undoubtedly strike back by hitting Israel and attacking U.S. soldiers in neighboring Afghanistan. Also, Iran has put much of its nuclear program deep under ground, making it uncertain how much damage could be done by American airstrikes... But time is running out. Experts say Iran has uranium enriched to 20 percent, a level from which it can be converted to weapons-grade fairly quickly. The U.N. International Atomic Energy Agency says the Iranians are preparing to install faster centrifuges that would speed the process. 'Many people think 2013 is the year of decision as to the question of whether to go to war or strike a conclusive deal to end Iran's nuclear ambitions,' said Suzanne Maloney, senior fellow at the Brookings Institution's Saban Center for Middle East Policy." http://t.uani.com/11IIT3R

AP: "Iran on Saturday unveiled its newest combat jet, a domestically manufactured fighter-bomber that military officials claim can evade radar. President Mahmoud Ahmadinejad said in a ceremony broadcast on state TV that building the Qaher F-313, or Dominant F-313, shows Iran's will to 'conquer scientific peaks.' The Qaher is one of several aircraft designs the Iranian military has rolled out since 2007. Tehran has repeatedly claimed to have developed advanced military technologies in recent years, but its claims cannot be independently verified because the country does not release technical details of its arsenals." http://t.uani.com/12mUwCc

Sanctions

Bullion Street: "Turkey is facing more pressure from global communities to end its gold-for-gas dealings with Iran. The latest to join the fray is United Against Nuclear Iran (UANI), which launched its Turkey gold campaign, and called on both the London Bullion Market Association (LBMA) and Istanbul Gold Exchange (IGE) to enact new measures to combat illicit barter agreements, where Iranian crude oil is being exchanged for Turkish gold. Specifically, UANI is calling for the LBMA to require all of its members, particularly the IGE, to certify that the recipient of their gold products is not Iran. The LBMA should revoke the membership of any member that is unable to do so. The trade of Turkish gold for Iranian crude oil is enabling the Iranian regime to evade sanctions and continue funding its nuclear program. Most of the world's over-the-counter gold trading is cleared through London. Without a membership to the LBMA, clients around the globe could not reliably access the international bullion market." http://t.uani.com/Xag1An

Reuters: "The United States will target companies that help disguise Iranian oil shipments to skirt Western sanctions, a State Department official said, as Washington steps up the pressure on Tehran to abandon its nuclear programme... The U.S. official said he planned this week to meet government and company officials in Malaysia, where a Reuters investigation last year revealed two tankers lying at anchor near the tax-haven port of Labuan, storing millions of barrels of Iranian oil. 'Concealing the origin of Iranian crude, or shipping Iranian crude to a non-excepted country is a sanctionable offense,' the U.S. official told Reuters. 'We are actively looking at a variety of companies where we see instances of potential sanctions offenses and we are looking to target companies that are engaged in that,' the official said, declining to name any of these companies... Ship-to-ship transfers (STS) are a common tactic Iran and its buyers use to get around the sanctions. Cargoes of Iranian oil are dispatched from large tankers to other vessels and then blended with oil from another source to alter its physical specification. Shipping documents are then issued with a new origin for the blended cargoes." http://t.uani.com/Wm1p1j

Bloomberg: "The International Energy Agency said it was too early to revise its estimate for Iranian oil exports amid speculation that the Persian Gulf nation boosted shipments in December. Iran's crude shipments were 1.2 million barrels a day, the Paris-based agency said in a Jan. 18 report, an estimate it won't be revising until next month, Diane Munro, a supply analyst at the IEA, said in a phone interview today. That's down from 1.45 million in November. Reuters reported earlier today that Iranian exports rose to 1.4 million barrels a day last month, the highest level since European sanctions began, citing data it compiled from analysts and shipping and customs data. 'With exports close to 1.5 million barrels a day and Brent crude above $110 a barrel Iran does not really care anymore about the sanctions,' Olivier Jakob, managing director of consultants Petromatrix GmbH in Zug, Switzerland, said in a report today. 'The export revenues from Iran are now equivalent to exporting at full capacity in a market at $81 and that is far from pushing Iran in a corner.'" http://t.uani.com/URI7BP

Financial Express: "Domestic refineries owned by oil companies have suddenly found themselves in a bind as global reinsurance giants have refused to provide cover for refineries processing Iranian crude oil. The reinsurers have resorted to such a step in the wake of sanctions imposed by the US and the European Union. Indian insurance companies alone cannot provide insurance cover for refineries as they fall under the high risk category and need substantial reinsurance support. But most reinsurance companies that provide reinsurance support to Indian firms are complying with the US fiat on sanctions against Iran. Recently, GIC Re, the country's sole reinsurer, had intimated to general insurers about the situation where any Indian refineries processing Iranian crude cannot recover any claims from the reinsurers." http://t.uani.com/Vz6IIP

Syrian Uprising

Reuters: "Iran told Israel on Monday it would regret its air strike against Syria last week, without spelling out whether Iran or its ally planned any military response. 'They will regret this recent aggression,' Saeed Jalili, Secretary of Iran's Supreme National Security Council, told a news conference in Damascus a day after holding talks there with President Bashar al-Assad. Jalili likened Israel's attack on a military compound north-west of Damascus on Wednesday to previous conflicts including its 34-day war with Lebanon's Shi'ite militant group Hezbollah in 2006, all battles that he said Israel had lived to regret. 'Today, too, both the people and the government of Syria are serious regarding the issue. And also the Islamic community is supporting Syria,' he said." http://t.uani.com/Un5VzC

Terrorism

WSJ: "Defense Secretary Leon Panetta accused Iran's paramilitary force of an intensified campaign to destabilize the Middle East by smuggling antiaircraft weapons to its militant allies. Iran's export of so-called manpads-antiaircraft missiles that can be carried by a single person-represent what Mr. Panetta called a dangerous escalation. 'There is no question when you start passing manpads around, that becomes a threat-not just to military aircraft but to civilian aircraft,' Mr. Panetta told The Wall Street Journal in an interview describing shifting threats to the U.S. as he prepares to leave his post. 'That is an escalation.' Western officials have long worried about the spread of such weapons and the risk they pose to airline passengers as well as to military helicopters and jets. Recent U.S. intelligence pointed to new efforts by Iran to smuggle manpads, but few shipments had been intercepted before Jan. 23, when Yemen, aided by the U.S., intercepted a boat carrying the weapons." http://t.uani.com/XEPs6f

Domestic Politics

Reuters: "President Mahmoud Ahmadinejad accused the parliament speaker's family of corruption on Sunday, turning a long-standing rivalry between two of Iran's most powerful figures into a face-to-face feud, months before an election. Addressing parliament to defend one of his ministers against impeachment, Ahmadinejad went on the attack, playing astonished lawmakers a recorded conversation with the brother of the speaker that he said implicated the whole family in corruption. Speaker Ali Larijani is a likely frontrunner to succeed Ahmadinejad at a June election but a financial corruption scandal could damage his standing among voters struggling with an economy battered by Western economic sanctions." http://t.uani.com/11Bgj97

WashPost: "Iran's parliament voted Sunday to impeach the country's labor minister, the ninth minister from Mahmoud Ahmadinejad's cabinet to be dismissed during the president's second term in office. The proceedings Sunday represent a dramatic escalation in the long-standing power struggle between Ahmadinejad and the speaker of parliament, Ali Larijani. In Sunday's vote, 192 of 272 parliament members voted in favor of impeaching Labor Minister Abdul-Reza Sheikholeslami over his decision to make Iran's former general prosecutor, Saeed Mortazavi, the head of the country's social security fund. The move, the articles of impeachment said, was 'against the expediency of the country, unlawful and against the interests of 33 million workers under this fund.' Mortazavi was removed from the judiciary over his alleged role in the deaths of protesters held in custody after Ahmadinejad's disputed 2009 reelection." http://t.uani.com/TzaC7V

AP: "The German newspaper Bild am Sonntag reports that a man caught last month trying to enter Germany with a check worth about $70 million was Iran's former central bank chief. The weekly reports that customs officials at Duesseldorf airport found the check in Tahmasb Mazaheri's luggage Jan. 21 upon his arrival from Turkey. German customs had issued a statement Friday saying a check for 300 million Venezuelan Bolivars issued by the Bank of Venezuela was found on an unnamed 59-year-old man." http://t.uani.com/11IHR7U

Opinion & Analysis

Gideon Rachman in FT: "The announcement that talks with Iran over the country's nuclear programme will resume later this month sounds potentially exciting - but perhaps only for those with short memories. There have been plenty of six-party talks with Iran before, and they have generally left the negotiators frustrated and angry. Is there any reason to think things might be better this time? Clutching at a straw, I initially got excited by the fact that the latest talks are to be held in Kazakhstan. The Kazaks like to point out that they are one of the very few nations ever to have given up nuclear weapons. Indeed President Nursultan Nazarbayev has been waging a lonely and unsuccessful campaign to get himself awarded a Nobel Peace Prize, on the basis of these anti-nuclear credentials. But, on reflection, I think I may have over-played the Kazak angle. A more substantial reason for hoping that there might be a real Iranian change of heart is that sanctions are having a really serious effect on the economy. On the other hand, Iran has its own presidential election next June. Just as the US was unable to try anything new on Iran in the pre-election season, so Iran seems unlikely to make radical policy shifts ahead of its own leadership battle. (Of course, Iranian politics are hardly the mirror image of the US - but the overall effect might still be the same.) One new sounding element was Joe Biden's offer, earlier today, to hold direct talks with the Iranians. But Tehran does not seem eager to respond - the more bureaucratic and gluey six-party talks might suit them better, particularly if the plan is to stall, rather than deal. Most of the diplomats I know who have actually been involved in nuclear talks with Iran over the years have found the whole experience deeply dispiriting and frustrating. One told me that he rated the chances of success as 10% at best. So why carry on? The diplomat's reply was that the alternatives - war or a nuclear Iran - were so dreadful, that he felt compelled to establish that there really was no other option. A cheerful thought to set us up for those talks in Astana!" http://t.uani.com/URKi8x

Eye on Iran is a periodic news summary from United Against Nuclear Iran (UANI) a program of the American Coalition Against Nuclear Iran, Inc., a tax-exempt organization under Section 501(c)(3) of the Internal Revenue Code. Eye on Iran is not intended as a comprehensive media clips summary but rather a selection of media elements with discreet analysis in a PDA friendly format. For more information please email Press@UnitedAgainstNuclearIran.com

United Against Nuclear Iran (UANI) is a non-partisan, broad-based coalition that is united in a commitment to prevent Iran from fulfilling its ambition to become a regional super-power possessing nuclear weapons.  UANI is an issue-based coalition in which each coalition member will have its own interests as well as the collective goal of advancing an Iran free of nuclear weapons.

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