Farzin’s Impossible Mission
What is the reason for the Central Bank Governor’s trip to Qatar?
Farzin’s Impossible Mission: According to Iran Gate, one of the most significant news stories that has been overshadowed by the protests is Mohammad Reza Farzin’s trip to Qatar. The new Central Bank Governor, who has been in office for less than two weeks, has started his trips to regional countries aiming to release blocked foreign currencies.
This comes while Ali Salehabadi’s numerous meetings in the Arab countries of the Persian Gulf ultimately led nowhere, and the financial resources did not become available to the Raisi government.
Mohammad Reza Farzin, the Central Bank Governor, in his trip to Doha last Thursday, January 5, 2023, had talks with his Qatari counterpart Sheikh Bandar bin Mohammed Al Thani. According to domestic media, Farzin emphasized the need to develop monetary and banking cooperation and relations between Tehran and Doha during this trip.
However, experts believe that the main reason for the Central Bank Governor’s trip to the Persian Gulf countries is the effort to lay the groundwork for creating a channel to access Iran’s blocked foreign currency resources abroad.
Some even believe that this action by Farzin is a sign of a new approach by the Central Bank in establishing effective relations with counterpart institutions in the region’s countries. Some analysts also refer to this approach as a signal of the start of currency diplomacy in the thirteenth government.
It was expected that one of the two countries, Oman or Qatar, would be chosen by the Islamic Republic to establish currency channels. However, Farzin’s trip exactly two weeks after Ali Salehabadi’s presence in Muscat shows a change in strategy.
Is Farzin a diplomat or an economist?
Some economic experts believe Farzin is the best and most efficient choice among the options the Raisi government could employ in its economic team. Although there has been widespread criticism of this choice, most commentators have expressed satisfaction with this appointment. However, the recent statements by the new Central Bank Governor have significantly reduced the wave of support for him. Overall, he can be considered the most acceptable current economic manager in Iran, but given the obstacles he and his team face, it can be expected that Farzin might be able to solve some of the many economic issues in Iran.
Given the extremely weak and controversial performance of the diplomatic apparatus over the past 19 months, significant pressure has been exerted on Iran’s economy due to the intensification of sanctions. Therefore, it is expected that Farzin will also bear the burden of the nuclear negotiation team. This is likely why, even before the ink on his appointment as Central Bank Governor dried, he headed to Doha.
However, there is no indication in Mohammad Reza Farzin’s record of expertise in economic diplomacy. As mentioned, he has a relatively reasonable academic standing and significant experience in managing the country’s banking sector, but it has not been heard that he has played an active and effective role in important negotiations with a foreign government.
Even considering the composition of the middle managers and deputies stationed at the Central Bank, it can be said that the academic background of the delegation sent to Doha is not particularly strong for achieving the mentioned objectives.
Farzin’s Hands Came Back Empty from Qatar
After the United States withdrew from the JCPOA and the return of nuclear sanctions during Trump’s era, the discussion of transferring Iran’s currency settlement channel from the UAE to Qatar was raised. Statements by the thirteenth government officials about the release of Iran’s blocked resources in South Korea also reinforced this issue because the Central Bank, during Salehabadi’s tenure, repeatedly announced that these resources would become accessible to the Iranian government with the help of a friendly government in the region.
Although these resources have not yet been made available to the Islamic Republic, it seems that the Qatar channel is the only hope for the Ebrahim Raisi government to access Iran’s blocked foreign currency resources. Therefore, Farzin went to Doha to perhaps lay the groundwork for establishing this channel.
The accompaniment of a specialized advisory team from the Ministry of Foreign Affairs with Farzin’s delegation from the Central Bank indicates the importance of this trip for the thirteenth government. The political and diplomatic dimensions of the Central Bank Governor’s trip to Qatar are likely much broader than previously imagined.
However, it is still unclear whether the problems and obstacles in Iran’s currency transfers will be resolved through Doha or if Farzin has failed in his first overseas trip.