Iran’s central bank Ex-chief Valiollah Seif, officials get jail term for currency misuse

A court in Iran sentenced the former governor of Iran’s Central Bank, Valiollah Seif, to 10 years in prison. He was sentenced to 10 years in jail for violating the country's currency system, according to AP. Ahmad Araghchi, a then-deputy to Valiollah Seif, was sentenced to eight years on the same charges, as per the agency report.

Seif was also involved in smuggling foreign currency, AP cited the judiciary spokesman Zabihollah Khodaeian as saying to the State TV. Valiollah Seif served as governor of Iran’s central bank for five years from 2013 to 2018 under former Iranian President Hassan Rouhani, reported Iranian State TV. Araghchi worked as deputy to Valiollah Seif between 2017 and 2018. In addition, eight others who were involved in the matter were also sentenced to different prison terms, AP reported. Further, the report mentioned that all the defendants have the right to appeal.

The defendants were selling 160 million US dollars and 20 million euros on the open market, Iran International reported. Ahmad Araghchi in his defence in 2018 had mentioned that the trading of hard currencies took place for strengthening the value of Iran's currency, the rial, Iran International reported. Furthermore, Aragchi had mentioned that they had worked with the Intelligence Ministry on the matter. Moreover, the decision was taken on a request by the Supreme National Security Council and orders by President Rouhani, as per the Iran International report.

The Iranian currency rial exchange rate was at 39,000 to $1 in 2017 at the beginning of Araghchi’s tenure in office. Reportedly, the rial had reached more than 1,10,000 to $1 by the time he left office in 2018. As per the AP report, the change was also partly at a time when the United States had imposed sanctions on Tehran. The rate of the rial had dropped from a rate of around 32,000 rials to $1 at the time of Iran’s 2015 nuclear deal. The price of the currency 'rallied' for some time after former US President Donald Trump announced the decision of withdrawing Washington from the nuclear deal. In addition, Trump reimposed trade sanctions on Iran in 2018. 

(With Inputs from AP)

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