Iran says detains 17 for foreign exchange fraud

Iran intervened in the currency market and threatened speculators as it engineered a dramatic recovery of the rial in recent weeks to ease pressure on its economy

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DUBAI: Iran’s security forces have arrested 17 people on charges of profiteering from fraudulent currency dealings, the state news agency IRNA reported on Tuesday, as Tehran tries to reverse a slide in the rial following the reimposition of U.S. sanctions.

Iran intervened in the currency market and threatened speculators as it engineered a dramatic recovery of the rial in recent weeks to ease pressure on its economy.

The suspects had obtained hard currency at subsidised rates from the government to import goods but had instead sold the money on the banned unofficial market, IRNA quoted the Intelligence Ministry as saying.

The rial climbed to about 105,000 against the U.S. dollar in mid-December, from about 117,000 a week earlier, and 152,500 at the end of October. The currency had hit record lows around 190,000 in late September.

Agents also exposed 87 fake companies before they could send 300 million euros ($341 million) they had received from the government abroad, the agency added.

Iran on Saturday executed a businessman sentenced to death by a fast-track court set up to fight economic crimes, following an outcry against profiteering and corruption that has seen dozens of people jailed.

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