Iran to keep most unfrozen overseas assets in foreign banks - FT.com

Iran to keep most unfrozen overseas assets in foreign banks - FT.com:

"Iran plans to keep most of the $100bn in assets it holds in foreign banks out of the country now the funds have been unfrozen, in a bid to fend off inflationary pressure from a sudden injection of cash into its economy, according to the country’s vice-president.



“The money will not come to Iran,” says Mohammad-Bagher Nobakht as he outlined plans for how the government would deal with the assets released following Iran’s nuclear agreement with world powers last year. Instead, he said, “we will use it the same way as oil revenues”, with the central bank opening letters of credit for domestic companies, taking their payment in rials and paying overseas creditors in hard currency.

Despite high levels of public debt, analysts say, Tehran plans to direct the funds at infrastructure projects and the purchase of capital goods in a bid to end a recession that has seen negative growth in most years since 2011 and sent youth unemployment to 25 per cent."



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