Iran Says Thursday's Attack Near Tehran ‘Fake Enemy Operation’

The government’s official rate of 417,500 for the dollar on Saturday meant very little. Availability of foreign currency at that rate is very limited which drives buyers to the curbside black market.

Fluctuations in the foreign currency exchange rates have immediate effect on the prices of several other commodities including gold, jewelry, and vehicles -- which many Iranians buy for investment or to preserve the value of their savings -- as well as electronic devices such as computers and smart phones and even home appliances.

The property market usually reflects the changes in exchange rates after a period of around 30 days but buyers and sellers both appear very apprehensive as the rial has been rapidly falling daily for about a week. No one can be certain how far the currency will fall and is not sure about any business decision.

The deep plunge of the rial has also affected many businesses where pricing is not as obviously reflective of foreign currency rates, as is the case with mobile phones and cars.

The price of mobile phones, for instance, rose sharply Saturday with many retailers preferring to hold on to their stock in anticipation of further fall of the rial. According to Etemad newspaper, an iPhone 13 Pro Max which sold for one billion rials ten days ago was priced at 1.2 billion on Thursday when the dollar traded around 560,000 on the street. The price of other brands and models such as Samsung phones has also risen accordingly.

Some textile retailers and goldsmiths in the Grand Bazaar of Tehran, for instance, closed their shops Saturday afternoon as the rial continued to fall. In such circumstances, retailers as well as wholesalers are too reluctant to sell for the fear of not being able to replenish their stock with the ‘worthless’ money they earn.

The country is also suffering from an inflation rate of well over 50 percent.

The parliament held an extraordinary, closed session with First Vice President Mohammad Mokhber Saturday morning regarding rials fall and the chaos it has created for businesses.

Once again, Mokhber insisted that the problems which already existed when the administration of President Ebrahim Raisi took over in August 2021 are “gradually diminishing” and that the foreign currency market “will soon be stabilized” while the governor of the Central Bank of Iran (CBI), Mohammadreza Farzin, told lawmakers that only the rates announced by the bank’s new portal were “real”.

Many, however, believe that the rial’s depreciation will continue as long as the Islamic Republic does not reach an agreement with world powers over its nuclear program that can lift sanctions, and stop provoking the international community with rash remarks and statements.

Economy Minister Ehsan Khandouzi tried to convince the parliament that “hidden hands” were responsible for the chaos in the market and that these “saboteurs have been identified.” Security, intelligence, and judiciary bodies will soon deal with these people, he said.

The Islamic republic has resorted at times of similar to hanging individuals whom it accused of “corruption on earth” through their economic activities including destabilizing the foreign currency and gold markets at. Officials also usually accuse foreign governments and “enemies” whenever upheavals in the markets cause popular discontent.

In November 2018, Vahid Mazloumin, who came to be known in the media as “The Sultan of Gold Bullions” and another businessman Mohammad-Esmail Ghasemi were hanged in Tehran after being convicted of “creating a network to destabilize the country’s economic, foreign currency, and financial systems by conducting illegal transactions and large-scale smuggling of foreign currency and gold bullions.”

The Paris-based Financial Action Task Force is an inter-state organization that leads global action to tackle money laundering, terrorist and proliferation financing. Its recommendations impact decisions by governments and private sector firms in making banking and investment decisions.

Iran and North Korea are the only two countries on FATF’s black list, and all member states are urged to apply enhanced due diligence in dealing with them.

Experts say that even if sanctions imposed by Western countries on Iran are lifted, Tehran must adhere to FATF standards in banking and financial controls to be considered a safe business partner by international actors.

Most important are measures to prevent money laundering and financing of terrorism.

Although FATF’s decision comes as no surprise given Tehran’s refusal to accept its demands, it coincides with unprecedented financial and economic chaos in Iran in recent days.

Iran’s previous government submitted legislation to parliament in 2017 to adopt laws to implement FATF’s standards, but the hardliners have since prevented the final approval of the laws.

Opponents argue that if Iran accedes to FATF demands it will not be able to provide financial help to allied groups in the region that are part of Tehran’s “axis of resistance”.

These groups, such as the Lebanese Hezbollah and some Palestinian militant organizations, are designated as terrorist by some countries and act as proxy forces to help the Islamic Republic spread its influence in other countries.

In an interview Thursday with Miras-e Arya, a government-run news website dedicated to cultural heritage and tourism news, the communications minister, Isa Zare’i, said blocking of WhatsApp and Instagram in Iran has created “a little difficulty” for foreign tourists and that his ministry was planning to design special sim cards for them to use to be able to have better and easier access to such platforms.

Many on social media reacted angrily to the minister’s remarks and said the Iranian people had an equal right to have free access to social media platforms and websites that they wish to use.

“It’s true that a tourist, anywhere in the world, must be shown respect by the host country but it is racial discrimination and apartheid if special sim cards are provided to tourist to have specially tailored internet access when the people of that country are deprived of it,” one of the critics tweeted.

Another tweeter user pointed out that issuing such sim cards would encourage a black market.

In a statement Friday, the ministry said the reason for the plan was that foreigners visiting Iran for a short time must be allowed to connect with family and friends through their favored platforms, which are banned in Iran by law, and claimed Iranians are increasingly immigrating to unfiltered domestically-developed platforms.

The ministry went on to say there had been requests to provide limited-time tourist sim cards, which would expire when they leave the country, to provide them with access to certain filtered platforms to resolve their communications problems. “[Issuing] tourist sim cards is only a proposal and no decision has been taken about it yet,” the statement said.

The Twitter account of the government portal, PadDolat, has now removed the tweet which quoted the minister’s original remarks.

Iran has been censoring the internet and blocked most major social media platforms such as Facebook, Twitter, and YouTube for years. Amid recent protests, Instagram, the only freely accessible application which millions including small businesses and farmers used to promote and sell their commodities, was also blocked.

Social media users in Iran have largely shunned domestically developed social media applications such as Wisgoon and Nazdika, designed to replace Instagram, and Rubika, a messaging application, for various reasons including their quality and lack of privacy.

Experts have warned that domestic apps are very vulnerable to government intrusion and there are serious safety and privacy concerns including the fear that security services could be able to spy on people through them.

For years, many in Iran have relied on VPNs and anti-filtering software to navigate through government censorship and blocked social media and websites. The use of VPNs surged drastically following the recent nationwide protests. Farhikhtegan newspaper recently reported that based on a survey, 42 percent of all Iranians regularly use Telegram, and 38 percent WhatsApp and Instagram. All these platforms are only accessible if users install anti-filtering software or VPNs on their phones and computers for which they need to pay subscription fees of up to 2 million rials (around $4) per month.

Former Communications Minister Mohammad-Javad Azari-Jahromi has estimated that the market for VPNs is worth around 160,000 billion rials a year.

Iran has also been struggling with the mass cancellation of previously planned visits to Iran since protest erupted across the country in September following the death in custody of the 22-year-old Mahsa Amini who was arrested for not wearing her hijab “properly”. In November, the head of the Hoteliers Association, Jamshid Hamzehzadeh, said as much as 85 percent of all tours to Iran had been cancelled.

The foreign ministry told Iran International in a statement on Friday that “Ottawa stands for the right of everyone to hold opinions without interference and the right to freedom of expression and peaceful assembly, as enshrined in the Universal Declaration of Human Rights and the International Covenant on Civil and Political Rights.”

It also slammed the Iranian regime's gross and systematic violations of human rights and intimidation of its own people.

“We stand with the people of Iran, who call for change based on equality, respect and justice.”

The statement stressed that journalists, activists and media workers are the cornerstone of fair, strong and vibrant societies and must be free to do their work without fear of reprisals, political interference or intimidation.

“Any violence and intimidation against journalists or activists is completely unacceptable and must be condemned.”

Iran International was warned by British authorities in November that its journalists were under threat from Iranian agents and London’s Metropolitan Police took measures to strengthen security around the network’s office in the area.

On February 18, the network announced that following the advice of UK anti-terrorism officials it decided to temporarily move its studio operations to the US.

The decision solicited worldwide condemnations of Iran’s malign activities and specially threats against journalists.

The measure comes after two brothers of Iranian origin in Sweden were indicted on spying for Russia last year.

The act applies to both public and private organizations engaged in "security-sensitive activities" that are important to Sweden's national security and infrastructure. The act includes almost 100,000 Iranians living in the country as well.

Any company handling "security-sensitive information," will need to conduct a personnel security assessment before hiring new staff.

According to the Swedish security service, authoritarian governments can force the families of people who want to be employed in sensitive positions to spy.

The act has been criticized and Ardalan Shekarabi, an Iranian-born member of the Swedish Parliament.

In November 2022, Sweden charged two Iranian-born brothers, Peyman and Payam Kia, with spying for Russia and its military intelligence for about a decade.

Iranian-Swedish relations have been soured in recent years after Ahmadreza Jalali, an Iranian-Swedish doctor and researcher visiting Iran was deatined in 2016 on charges of espionage and after a sham trial sentenced to death.

Stockholm also issued a life sentence for Hamid Nouri, the former deputy prosecutor of Gohardasht prison in Sweden, on his role in the mass killing of political prisoners in Iran in 1980s.