Thursday's Daily Briefing on Iran

DoctorZin reports, 9.29.2005:

Flight of Capital is a Wake-Up Call for Iran

Amir Taheri, Gulf News:

Here is a quiz. You have a country whose foreign exchange reserves are at the highest levels in two decades, with prospects of rising prices for its principal export while over $200 million (Dh734 million) pours into its coffers each day.

Moreover, the nation's budget deficit, a persistent though occulted feature for the past eight years, has turned into a surplus, freeing the hands of the government to throw money at its more pressing problems. The logical consequence of all this should be a dramatic rise in the value of the nation's currency.

And yet the opposite seems to be happening in Iran. Why?

The short answer is that more and more people are selling rials, the Iranian currency, and buying whatever foreign currency they can get their hands on, including the new Iraqi dinar. This, in turn, translates into a massive flight of capital from Iran. READ MORE

Here are a few other news items you may have missed.

• Middle East Newsline reported that Israel has determined that Iran would not be stopped in its drive to produce nuclear weapons.
• JTA Daily Briefing reported that Israeli lawmakers on a visit to Washington hinted that Israel one day could resort to military force to prevent Iran from attaining nuclear weapons.
• Safa Haeri, Asia Times reported that Iran is backpedaling on its threats, for now.
• India Times reported that Iran on Wednesday asserted that all its agreements with India are still in force.
• Iran Press News reported that 23-year-old Kianoosh Sanjari, popular and diligent member of the "United Student Front" is still being inexplicably detained in Evin prison. He has yet to be charged or see an attorney.
• Iran Press News reported that Ahmadinejad said: The prophetic mission of the Islamic revolution is global and we as the standard-bearers of the "Velayateh Faqih" (Shiite version of khalifa) will be ready for responding to the world's needs.
• Iran Press News reported that Mohammad Kasraii, 35-year-old shopkeeper, resident of the village of Kaani-Sepilkeh, suburb of the town of Marivaan was shot and killed by the regime's agents.
• Iran Press News reported that Hazem Sha'lan, Minister of Defense of the Iraqi interim government said: Abu-Mussab Al-Zarqawi, the head of the Iraqi branch of Al Qaeda is in direct collaboration with the security and intelligence apparatus of the Islamic regime.
• Iran Press News reported that various regime-run media outlets are saying Mohammad Khatami, the ex-president of the Islamic republic was honorably retired.
• Iranian blogger, Morteza Abdolalian, Iran Watch Canada reported that the head of the Tehran appeal court: No political motive in Zahra Kazemi's court file!
• Iran Focus reported that Hassan Abbasi, a senior Revolutionary Guards commander, warned: oil prices on the international markets would shoot up to $400 a barrel if an attack were to be carried out on Iran.
• Iran Focus reported that at least two people have been killed during clashes between demonstrators and State Security Forces (SSF) in the city of Ahwaz.
• Iranian blogger, Mr. Bedhi said: If you want sanctions, I am not with you.
• Eurasia Security Watch, American Foreign Policy Council reported that officials in Tehran are warning of potentially devastating global consequences if Iran is sanctioned for its nuclear ambitions. Major-General Yahya Rahim Safavi, Commander of Iran’s clerical army, the Pasdara said Iran: can retaliate accordingly and has the power to attack enemies’ interests in the furthest reaches [of the world].
• Marc Perelman, Forward Magazine reported that the Bush administration appears to have backed Tehran in a fight over the 1994 bombing of the Jewish community center in Argentina.
• Dow Jones Newswires reported that Cuba, Syria and Belarus joined the International Atomic Energy Agency's 35-nation board Thursday.
• Alistair Lyon, Reuters reported that for all its hardline posturing, Iran is likely to play a cautious hand in its drawn-out nuclear game with the West to avoid isolation.
• Middle East Newsline reported that a presidential commission has determined that U.S. intelligence had few assets in Iran as well as little direct knowledge of Teheran's missile and nuclear programs.
• Champress reported that Iraq Foreign Minister Hoshyar Zybari said: Iran has a clear influence in Iraq no one can deny.
• Iranian.com reported that Iran's President Mahmoud Ahmadinejad hailed Venezuela's "brave and judicious" vote against the EU-proposed resolution passed by the International Atomic Energy Agency's Board of Governors.
• The Dawn reported a Pakistani, convicted of exporting missile parts to Iran almost 20 years ago, is being accused in a San Diego court of conspiring to smuggle jet engine components. The Los Angeles Times reported that the Iranian Air Force has both T-38s and F-5s.
• SMCCDI reported that about 300 Islamists and members of the repressive para-military Bassij force hurled stones, tomatoes and smoke bombs over the walls of the British embassy compound in Tehran.
• And finally, a Mock Photo of Ahmadinejad: Iran Gets Wild.