Iran lifts ban on currency exchanges, allows branches to resume business

The official rate will remain at 42,000 rials to the dollar. (File photo: AFP)
Updated 06 August 2018
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Iran lifts ban on currency exchanges, allows branches to resume business

  • Foreign currencies had recently doubled in price on the black market
  • Legal institutions and businesses will again be allowed to bring gold and foreign currencies into Iran

TEHRAN, Iran: Iran’s Central Bank has allowed money exchange offices to resume work after a ban imposed in March amid the country’s economic troubles.
The bank’s governor, Abdolnasser Hemmati, told state TV late on Sunday that “money exchangers are allowed to sell and buy foreign currencies” once again.
He also said that legal institutions and businesses will again be allowed to bring gold and foreign currencies into Iran. Hemmati says the decision will go into effect on Tuesday.
He says the official rate will remain at 42,000 rials to the dollar for vital imports such as medicine and food.
Hemmati says the government’s decision in April to enforce a single exchange rate to the dollar caused “serious problems” for the country.
Foreign currencies had recently doubled in price on the black market.


Russian court jails US investor pending fraud trial

Updated 2 min 38 sec ago
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Russian court jails US investor pending fraud trial

MOSCOW: A Russian court on Saturday jailed the US founder of a major investment firm for two months over fraud charges he says were fabricated for use in a shareholder battle.
Michael Calvey, founder of the multi-billion-dollar investment fund Baring Vostok Capital Partners (BVCP), was placed under arrest until April 13 as he and five others await trial on charges they embezzled 2.5 billion rubles ($37.7 million).
Authorities detained four BVCP employees on Friday, including French national Phillipe Delpal.
Two other suspects include a former fund employee and someone at another firm mentioned in the probe. All six are now under pre-trial arrest.
In a statement Saturday, Baring Vostok said the claims made against its employees “have no merit.”
The case has already drawn comparisons to other high-profile probes against foreign investors in Russia, notably one against Bill Browder and the Hermitage Capital fund.
Ironically, it comes as Russia hosts a high-profile investment forum in its Black Sea city Sochi.
Calvey says he is innocent and argued in court that the probe is a bid to exert pressure on him amid a shareholder conflict within Vostochniy Bank, which he is trying to resolve in a London arbitration court.
The charges against him are intended to “pressure Baring Vostok to drop its arbitration claims in London or to obstruct the new share emission of Vostochniy Bank,” Calvey alleged according to a statement by Baring Vostok on Saturday.
Investigators say that a firm controlled by Calvey in 2017 owed 2.5 billion rubles to Vostochniy bank and paid the debt with a 59.9 percent stake in the Luxembourg company International Financial Technology Group (IFTG), which was valued at three billion rubles.
The investigators claim that IFTG’s real value was only 600,000 rubles.
The fraud claim against Calvey was filed with the FSB security service this month by Sherzod Yusupov, a minority shareholder in Vostochniy Bank, Russian agencies reported.
Baring Vostok controls more than 52 percent of Vostochniy Bank, while 32 percent is owned by Artyom Avetisyan, Russian reports said.
Calvey said in court that he and Avetisyan are tangled in a shareholder dispute, and that by filing the claim Yusupov was in fact acting on Avetisyan’s behalf.
BVCP is a veteran investor in Russia, with current and past projects that include the Internet company Yandex, online retailer Ozon.ru, several drugstore and food store chains, and Russia’s leading online classifieds service Avito.
Some Russian officials have supported Calvey, with Rosnano board chairman Anatoly Chubais calling him “one of the most respected investors” whose efforts “attracted about four billion dollars in foreign direct investment to Russia.”