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Entries in Thomas Erdbrink (28)

Monday
Jan022012

The Latest from Iran (2 January): The Currency is Falling

See also Iran Audio Feature: Scott Lucas with the BBC "The Economy is More Important than the Missile Tests"
Iran Feature: Stumbling and Stalemate over Sanctions
The Latest from Iran (1 January): Let the Campaigning (and In-Fighting) Begin....


Cartoon: Nikahang Kowsar2045 GMT: Currency Watch. Prominent conservative Habiballah Asgaroladi has warned that Iranian industry "cannot continue to exist" with the rial at today's level above 17000:1 vs. the US dollar.

2040 GMT: Reformist Watch. Rasoul Montajabnia, the deputy head of the Etemade Melli Party, has declared that damaging former Presidents Rafsanjani and Khatami will damage the system and Revolution.

Click to read more ...

Wednesday
Dec212011

The Latest from Iran (21 December): It's The Economy, Mahmoud

See also Iran Snap Analysis: The Currency Falls --- What Does It Mean?
The Latest from Iran (20 December): The Strains Within


1705 GMT: Oil Watch. A bit of good news for Tehran amidst the economic pressure on the regime, including the possibility of a European Union ban on supplies of oil from Iran....

Turkey's biggest crude oil importer Tupras has renewed its annual deal to buy crude oil from Iran for 2012, at almost the same volumes as this year, according to industry sources.

China's top refiner Sinopec Corp said that buy less than half the crude it normally imports from Iran in January.

1655 GMT: Najmeh Bozorgmehr of The Financial Times offers valuable interpretation of the currency crisis:

The managed float mechanism has collapsed for much of this year. The central bank’s adoption of a multiple-rate system has also failed to bring back stability to the market and to foil the impact of international sanctions aimed at Tehran’s nuclear programme. Sanctions have caused the cost of financial transactions to increase, by forcing them to go through numerous back channels, and have hit foreign currency markets by reducing the supply of cash.

But there are also domestic dynamics at play. While the market remains anxious about the possibility of a European Union oil embargo and the US imposing sanctions on the central bank, local media have accused the government of Mahmoud Ahmadi-Nejad, president, of engineering a deliberate devaluation to boost the rial value of its oil income in the final months of the fiscal year to March.

Economists and parliamentarians have predicted this year’s budget deficit could be as high as $30bn, or 7 per cent of the country’s GDP.

The government is due to present its budget bill to parliament soon and some analysts believe the government is allowing the rial to weaken to reset the official exchange rate to the dollar in the budget, which has traditionally sat around the 10,000 mark.

But Iran’s minister of economy and finance, Shamsoddin Hosseini, on Wednesday denied any such intention. “The government has had no, [absolutely] no deliberate plan to strengthen the dollar rate,” he said, and promised to announce “a plan to manage the market” soon.

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Saturday
Nov262011

The Latest from Iran (26 November): Embezzlement

Graffiti of the Day. "The Greens Are Awake and Alert"


2125 GMT: Labour Front. ILNA reports on the protests of Tabriz workers and retirees in East Azerbaijan against changes in Iran's labour laws.

2037 GMT: Habil Darvish, the Chief Executive Officer of the Tehran Metro, has criticised the Government for paying only 20% of the allocated subsidies this year.

And Tehran Mayor Mohammad-Baqer Qalibaf has struck a note of defiance: 400 new metro carriages will run until the end of year, even though the Government has ordered banks not to cooperate with the Metro.

Click to read more ...

Wednesday
Nov162011

The Latest from Iran (16 November): Non-Appearances

A Green Movement poster opposing any military attack on Iran

See also Iran Analysis: Ahmadinejad --- A Phoenix Rising from the Ashes?
The Latest from Iran (15 November): After the Explosion


2100 GMT: The Explosion. Digarban goes back into the question of the death toll of Saturday's blast at the Revolutionary Guards base and --- contrary to the latest claim of the Guards of 17 deaths --- comes up with the names of 36 people who were killed.

The list is taken from accounts in IRNA, Fars, and Mehr.

2050 GMT: CrimeStoppers. MP Hosein Harati has declared that the Supreme Leader is the leader of the movement preventing crime in Iran.

If so, Ayatollah Khamenei has gone a big task --- Harati said that, in a country of 75 million people, there are 10 million criminal files.

Click to read more ...

Wednesday
Nov162011

Iran Analysis: Ahmadinejad --- A Phoenix Rising from the Ashes?

Ahmadinejad may slip some of the immediate shackles. As we noted yesterday, he is no mug, with a tenacity and determination that has prevailed over many of his political foes. But he faces checks at every turn. His economic high-point of the subsidy cuts packages has quickly descended, amidst problems with the programme, wider economic tensions, and the $2.6 billion bank fraud. His play for renewed discussions with the US appears to be going nowhere fast (thanks to both the US and to his domestic opponents). And his political base is shrinking rather than than expanding.

The pendulum does not swing that far. Rocky does not throw a climactic punch. The Phoenix does not rise.

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Saturday
Nov122011

Iran Feature: The Coffee Shops --- A Safe Space for Men and Women? (Erdbrink)

Hidden in a corner of the atrium of the tiny Feresteh shopping center, right behind Tehran’s only Victoria’s Secret and a traditional pastry seller, the high-end Lime coffee shop is only for those who know where to find it.

The music of pop singer Ricky Martin filled the air as customers ordered $4 shots of espresso and connected to the shop’s wireless Internet with their cellphones. Girls with long hair spilling out from under their obligatory Islamic head scarves giggled shyly as they held hands with their boyfriends.

“People should feel at ease here in Lime,” said the cafe’s owner, Joobin Gharaei. “We want to create a private atmosphere.”

Click to read more ...

Wednesday
Nov022011

Iran Analysis: Breathing Space for Ahmadinejad after the Impeachment Vote? (Not Quite.)

So, at the end of the political drama on Tuesday in Parliament, Minister of Economy Shamseddin Hosseini avoided impeachment by a 141-93 vote. 

But is that a resounding victory in Iran's internal conflict for President Ahmadinejad?

The stakes were important enough for Ahmadinejad to make a personal appearance, telling lawmakers that Hosseini had to be retained for the sake of unity amidst the serious enemy threats to Tehran. 

Yet even that address --- despite a short video showing both the President's defiance and his attempt to sell his speech with humour and levity --- offered hostages to fortune. Ahmadinejad avoided the details of the $2.6 billion fraud case with the diversion that there were "structural problems" in the case against Hosseini. His ploy of invoking the enemy threat was clumsy --- in the same speech, he was also trying to maintain the line that the enemy's capitalist system was collapsing. Thomas Erdbrink was spot-on to note the President's stumble when he admitted, contrary to Iranian propaganda, that the sanctions were having a marked effect on the banking sector.

More importantly, Ahmadinejead's Minister survived --- at least in the public performance --- not because of Ahmadinejad but by a grand gesture by the President's sometimes rival and foe, Speaker of Parliament Ali Larijani. It was he, in what he called an extraordinary intervention, who asked MPs to give the Minister of Economy another chance, pending the judicial investigation into the fraud. And he wrapped that initiative, and himself, in the cloak of the Supreme Leader, invoking Ayatollah Khamenei's title to call for Hosseini's reprieve.

That step is politically more significant than The Wall Street Journal's emphasis on the five speeches against Hosseini and "only one" for the Minister. Ali Larijani was claiming the Solomon role --- as the Supreme Leader's representative, of course --- and he was also ensuring that the judiciary, under the command of his brother Sadegh, buttressed its position. After all, it is that body which now gets to make the political as well as the legal decisions over the bank fraud.

Beyond there may be a bigger story to analyse. Larijani's step, like Ahmadinejad's speech, can only be dissected for elements of weakness. The decoded message is that the Iranian system --- far bigger than Hosseini or Ahmadinejad --- was the decisive issue. An impeachment vote might have struck at the President, but it also would have given the impression of weakness and even fragmentation in the regime. So in the end, converging with Ahmadinejad's call for unity, the Speaker of Parliament (and, he was saying, Ayatollah Khamenei), said critical MPs needed to back away --- while remaining content that the power of salvation was with the system, not the President.

There may be a few days of catching breath in Tehran's politics, but by no means it is a breathing space for President Ahmadinejad. The theme of this year has been the attempts by other factions in the establishment --- Parliament, the judiciary, politicians, the Revolutionary Guards, and, often silently, the Supreme Leader --- to contain the President.

Yesterday, despite the impeachment numbers and Ahmadinejad's laughter, was just one tightening of the net.

Friday
Oct212011

The Latest from Iran (21 October): Back-Channel Talks with the US?

Iran Feature: Detained Reformist Leader Tajzadeh Writes the Supreme Leader
The Latest from Iran (20 October): 240 Days of House Arrest


1635 GMT: The Plot. It looks like Turkey is trying to broker a resolution between Tehran and Washington over the US allegations of an Iranian plot to kill the Saudi Ambassador to Washington....

Ahmet Davutoglu, Turkey's foreign minister, at a joint news conference with his visiting Iranian counterpart Ali Akbar Salehi, made a carefully-balanced statement: "We don't believe that Iran would be engaged in such an act, but America says they have evidence. Governments should be transparent on such issues. Those who make the claims should also be clear about their claims, and Iran should answer to that."

Davutoglu continued, "What needs to be done now is that all parties involved share what they have and clear the issue without giving way to a further increase in tensions. Turkey is ready to contribute if there is anything we can do to help relieve the tension."

Turkish media reported this week that the US sent official to Turkey to present evidence of the alleged plot. A US Embassy spokesman would not comment on the reports.

Click to read more ...

Sunday
Jun262011

Iran Feature: The Political Struggle Moves to the Cinemas (Erdbrink)

Nader and SiminIn Iran, newspapers stay away from politically sensitive topics, more and more Web sites are being blocked and anti-government demonstrations have been declared illegal.

But the popular cinema is going strong, and in recent weeks, the screenings of two locally made films at theaters across the capital have become a popularity contest of sorts between supporters of the government and the grass-roots opposition movement.

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Tuesday
May242011

Iran Latest: An Oil Refinery Burns During Ahmadinejad's Visit (Erdbrink)

A deadly blast during the inauguration of a major oil refinery by Iranian President Mahmoud Ahmadinejad killed 2 and injured 20, the semi-official Mehr news agency reported Tuesday.

Authorities ruled out any form of sabotage and instead spoke of an industrial incident caused by a gas leak at the Abadan oil refinery, one of the largest and oldest industrial complexes in Iran.

According to Mehr, a ‘testing machine’ exploded almost directly after it was placed in the area where Ahmadinejad was preparing to give a speech.

Click to read more ...