Iranians cautiously optimistic about thorny deal with US
Tehran, Iran – The memorandum of understanding (MoU) signed between Iran and the United States has survived its first few rocky days, producing a roadmap
Tehran, Iran – The memorandum of understanding (MoU) signed between Iran and the United States has survived its first few rocky days, producing a roadmap to a potential long-term resolution of the war launched by the US and Israel nearly four months ago. Months of tough political and technical discussions still lie ahead, however, and while Iranians are watching closely, optimism remains checked. “We got from daily bombing to talking about buying corn from the US,” Ehsan, who lives in central Tehran, told Al Jazeera. “So, that’s a good change, but our quality of life is still getting worse by the day.” He was referring to news that Iran will be able to buy humanitarian goods, including food and medicine, by using some of its own funds frozen abroad that are ostensibly to be released as part of the agreement. Iran’s central bank Governor Abdolnaser Hemmati said in a video message on Tuesday that Tehran could buy corn and wheat and other agricultural products from the US if their price and quality are agreeable, but the text of the agreement does not oblige it to do so. The US Treasury has also issued a general licence as part of the MoU that authorises the production, delivery and sale of crude oil, petrochemical products and petroleum products of Iranian origin through August 21. Payments owed to Iran for these purchases may be made in US dollar-denominated funds. This will mean the country can sell oil with less need for hidden discounts, circumnavigation methods and complicated payment or barter routes.
Iran has already exported millions of barrels of oil previously loaded on supercarriers over recent days, so that could mean more money being injected into the economy. But the effects will not be felt by the Iranian people directly or immediately, as they continue to face some of the highest inflation rates in the world, particularly for food and medicine. The national currency had strengthened to a rate of 1.53 million rials against the US dollar by mid-June, while it was at a low of about 1.9 million in early May. The rate in Tehran’s open market on Wednesday was at 1.64 million. Hope for ‘a real agreement’ According to Iranian authorities, along with the oil, some traditional maritime trade has been restored through Iran’s southern ports, especially for essential goods stranded in ports of the United Arab Emirates (UAE). But the major neighbouring market, from which many goods were re-exported to Iran, has not been fully reopened to Iranian traders after the war. “I hope they reach a real agreement this time that can let us have a normal life and business,” a merchant selling imported electric toothbrushes, hairdryers and other personal care devices told Al Jazeera in Tehran’s Jomhouri business district. “Over the past few months, we’ve kept the work going by registering new orders in the UAE and having them brought over by passengers coming in from Oman. But that’s not sustainable for a business,” he said. Over recent days, Iranians have also been hampered by a wide-scale disruption of the country’s banking system that affected in-person and online services offered by multiple large lenders.
The BriefWire