The Latest from Iran (18 March): Relying on India

See also Iran Feature: Pushing Back with "Intelligence" Against the Drumbeats of War
The Latest from Iran (17 March): Ahmadinejad All-is-Well Alert

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1920 GMT: Sanctions Watch. The Voice of America reports that the United Arab Emirates is refusing to exchange Iranian Rials after SWIFT denied its facilities for fund transactions to the Islamic Republic.

1755 GMT: Currency Watch. In an effective admission that it can no longer control the exchange rate, the Central Bank has said it will allow official vendors to buy and sell foreign currency at open-market rates.

In January, after the Iranian rial almost halved in value in four months, the Bank tried to imposed a single rate of 12260:1 for the Iranian Rial vs. the US dollar. Vendors were threatened with suspension and unofficial traders with arrest if they did not observed the official rate, while websites posting currency information were blocked.

The steps were ineffective, however, as vendors simply refused to trade US dollars and other currencies. The street-market rate soon reached 19000:1, around its current level.

“Licensed exchange houses are given permission to buy and sell foreign currencies and answer customers’ needs based on the mechanism of the market’s supply and demand,” the Bank said in a statement posted on its website this weekend.

1645 GMT: Political Prisoner Watch. Parvin Mokhtari, the mother of activist Kouhyar Goudarzi, has been released after more than seven months in prison.

Mokhtari was seized the day after her son was arrested last July. Last week Goudarzi was sentenced to five years in prison.

1515 GMT: CyberWatch. The British Foreign Office has condemned Iran's blocking of a website launched by London on Wednesday to reach Iranians.

"UK for Iranians" was brought out on Wednesday, in Persian and in English. Entries included a message from Foreign Secretary William Hague, a comment on the Parliamentary elections as a "loyalty test", the case of paster Yousef Nadarkhani, condemned to death for apostasy, and the celebration of Chahrshanbeh Suri (the Fire Festival).

The website was available that day inside Iran but by Saturday, it had been blocked.

Hague said, "I condemn this action by the Iranian government. We have no quarrel with the Iranian people and regret that the Iranian authorities fear their own citizens' interaction and involvement with the outside world."

1015 GMT: CyberWatch. The Supreme Council of Cyberspace, appointed by the Supreme Leader and chaired by President Ahmadinejad, held its first session on Saturday.

The Council, whose duty is to plan and manage Iran's cyber-space, includes the Speaker of Parliament and the head of judiciary.

0915 GMT: All the President's Men. The controversy over the appointment of Presidential advisor Saeed Mortazavi as the head of the Social Security Fund may have some knock-on political effects.

Mortazavi has been accused by many of supervising the abuses in Kahrizak detention centre in summer 2009, when he was Tehran Prosecutor General. Although he was formally suspended from his duties at one point over the case, he has escaped prosecution.

His new appointment may lead to the interrogation and possible impeachment of the Minister of Employment and Social Welfare, Abdolreza Shaykh Al-Islami, a close ally of President Ahmadinejad. Leading MP Elyas Naderan has warned of the possibility, and Parviz Sarvari has followed up with the demand for the cancellation of the appointment: “This way there will be less trouble otherwise, (a group) of MPs will follow up the interpellation of this ministry."

( Therefore, it seems that appointment of Mortazavi is the beginning of a new trouble that if continues, then it is likely to lead to the interpellation of Abdolreza Shaykh Al-Islami, the minister of Job and welfare. Who is one of the very close and trusted men of Ahmadinejad. In this regard, Fars news agency stated that, an informed/aware source has told this news agency that Abdolreza Shaykh Al-Islami was against the appointment of Mortazavi as the new Managing director for the social security Fund. He said: “the minister of job and social welfare never wanted Mortazavi and was strongly against Mortazavi but the deviant current who are surrounding the president has forced the minister to appoint Mortazavi.” Fars News agency did not mention the name of this source. (http://farsnews.com/newstext.php?nn=13901227000903)

0700 GMT: Elections Watch. It may be two weeks since Iran's Parliamentary elections, with the uncertainties over the actual turnout, but Iranian officials are still pushing the event as a historic triumph. Fars features First Vice President Mohammad Reza Rahimi's proclamation, "The Iranian nation created a great epic in a free election shattering the smallest hope of the enemies and ill-wishers of the country. The enemies of the nation feared the message and ideals of the Islamic Republic and its impact on the entire region and the hearts of the nations."

However, even the most forthright of declarations can display cracks in propaganda. Fars asserts, "Initial estimates showed that at least 65% of [Iranians} have been present at the polling stations."

"Estimates"? Surely the website should be putting out "confirmed" turnout 15 days after the vote?

0644 GMT: Amidst a quiet phase in Iran ahead of New Year on Tuesday, we begin with the revelation of politics and propaganda in State news agency IRNA's lead item: "Great Success for New Delhi's Trip to Iran".

The article has little information about the Indian trade delegation's five-day stay, relying instead on the pro forma statement of the head of Indian exporters, Rafeeque Ahmad, "This very positive trip was a great success for us. We discussed the very good ways and capabilities for economic exchanges."

The significance instead is in the timing and the headline status of the piece. Amidst the tightening sanctions, Tehran is increasingly eager to highlight partnerships, not just for economic but for political reasons. Although there are still serious issues about the expansion of trade with India --- Delhi's payments for oil have not been fully resolved, despite the agreement that 45% can be in rupees --- the Iranian line is that non-oil trade shows the willingness of the Asian country to defy the US-led sanctions.

And AFP at least is willing to give a helping hand: it echoes the Iranian report as "India Trade Mission to Iran 'Very Successful'", adding its interview with Ahmed, "The visit was very good and very successful. We saw a lot of interest from the Iranians in buying Indian goods," Ahmed told AFP late on Saturday. We talked about the excellent opportunities in food grains, food processing, pharmaceuticals, auto parts and other areas."