Iran News Round Up

Marie Donovan argues that Iran’s hardliners are undermining the regime’s best chance at improving Iran’s economy in the long run in, “Iran’s Hardliners Can Leverage the Post-Protest Space.”

Interim Tehran Friday Prayer Leader Ayatollah Ahmad Khatami stated that Iran’s enemies are gladdened by President Hassan Rouhani’s recent statement in support of using public referendums to resolve disagreements on certain issues. Khatami stated that such referendums will never be conducted. Rouhani stated on February 11 that if the people disagree on certain issues, Iran will “bring the ballot box” and act according to Article 59 of the Iranian Constitution. Article 59 permits the people to vote on “vital economic, political, social, and cultural issues” if two-thirds of the Parliament approves a request for a referendum. (Radio Farda)

• Prominent hardliner Ayatollah Hossein Nouri Hamedani stated that the “[Iranian] people held a referendum once and said yes to it,” in reference to the 1979 referendum on the creation of an Islamic Republic. He urged authorities “to avoid marginal issues and think about solving the problems of the people.” (Alef)

President Hassan Rouhani headed a senior Iranian political and economic delegation to India to promote bilateral economic relations during a three-day visit beginning on February 15. Indian Prime Minister Narendra Modi invited Rouhani following Modi’s visit to Tehran in May 2016. Rouhani will meet with Indian President Ram Nath Kovind, Prime Minister Narendra Modi, and Foreign Minister Sushma Swaraj in New Delhi on February 17. Rouhani will also sign 15 Memoranda of Understanding (MoU) on economic cooperation and trade with India. Rouhani aims to encourage Indian investments in Iran during his visit. The senior Iranian delegation includes First Vice President Eshagh Jahangiri, Vice President for Economic Affairs Mohammad Nahavandian, Senior Foreign Policy Advisor to the Supreme Leader Ali Akbar Velayati, Foreign Minister Mohammad Javad Zarif, Oil Minister Bijan Zanganeh, Roads and Urban Development Minister Abbas Akhoundi, Industry, Mines, and Trade Minister Mohammad Shariatmadari, and Rouhani’s Chief of Staff Mahmoud Vaezi. (IRNA) (Tehran Times) (E) (Reuters) (E) (ILNA)

The Iranian Central Bank announced on February 14 that it will introduce new policies designed to curtail the recent devaluation of the Iranian rial. The official exchange rate of the Iranian rial has devalued by roughly 25 percent since September 2017. The Central Bank announced that it would start to offer rial-based certificate of deposits (CDs) with desirable rates of return in order to disincentivize Iranians from exchanging their rials for U.S. dollars. Central Bank head Valiollah Seif claimed on January 22 that investors should not expect the Iranian rial to devalue any further than a value of approximately 46,500 rials to the U.S. dollar at the time. The rial has since dropped to the value of approximately 50,000 rials to the U.S. dollar as of February 14. Parliamentary Economic Committee head Mohammad Reza Pour Ebrahimi stated that the current state of the currency exchange market is “worrisome” and blamed the government for a “lack of management.” Further devaluation of the Iranian rial may result in increased inflation, which may be cause for future protests if Iranian wages are unable to keep up with the increase in prices. (Mehr News Agency) (Fars News Agency) (Mehr News Agency) (ISNA)