A leader in Iran’s foreign exchange sector has been arrested just one day after he was removed from office at the Central Bank.
Ahmad Araghchi, who worked at the Central Bank of Iran as a Vice-Governor with specific responsibility for forex, was just one of many people who were arrested in what appears to be a concerted judicial effort to combat alleged fraud.
In a statement from Gholam-Hossein Mohseni Ejeie, a spokesperson for the Iranian judiciary, Araghchi was arrested alongside several unnamed currency brokers, as well as a government clerk.
He had been removed from office at the bank in the immediate run-up to his arrest, regional media is reporting.
It is unclear what exact form the alleged fraud has taken.
The arrest of Araghchi and the other alleged participants is not the first time that accusations of forex fraud have hit the Middle East.
Just across the Persian Gulf in Saudi Arabia, for example, a report released in July found that one group of scammers were trying to imitate major Polish broker XTB in Saudi Arabia and pose as its official representatives in order to defraud traders.
In April of this year, three people were also given prison sentences of several hundred years in nearby Dubai over a forex scam. Ryan D’Souza, Sydney Lemos and Valany Lemos, who were behind financial services firm Exential, were each given 500-year sentences as punishment for their role in the scam. The firm had previously enjoyed a high profile in Dubai, where it occupied offices in the Arenco Tower in the Media City area of town.
However, the move to arrest Araghchi in particular comes as Iran responds to ongoing economic problems by reducing its previously tough rules on the way that foreign exchange can be imported into and traded in the country.
A Sunday evening programme on the Iranian state broadcaster revealed a number of major measures which would be taken, including giving the right to sell hard currency to the country’s exporters.
Currently, Iran places limits on how much cash can be brought into the country at customs and border checkpoints, and it restricts the amount of gold which can be brought in as well. This will also change as a result of the new announcement, and it will now be possible to bring in unrestricted amounts.
Another restriction which looks set to be amended is the one which was previously in place on selling currency at floating fee levels. Now, bureaux de change and other currency exchange outlets will be able to offer this service to those who are going abroad.
Additionally, as part of the Iranian government’s attempts to allow people to use hard currency for certain purchases, it will now be on offer at a reduced charge for essential items such as medical supplies.
Part of the reason that Iran is looking to take these steps is as a result of major problems for the country’s currency, the Iranian rial, which has suffered significantly against the US dollar in recent weeks.
Whether these developments relate to the recent arrest of Ahmad Araghchi, however, remains to be seen.
- Crypto Rollercoasters, Meme-stock Explosions and Nasdaq Highs – There’s Something for Everybody
- Is This a Dip to Buy or the Start of a Market Correction?
- EURJPY – Bears might be coming out of hiding
- Risk Assessment – Fed’s Interest Rate News Changes the Landscape
- Sell in May Didn’t Work – Is it Now Time to Buy in June?
- GameStop Revolution Reveals Which Brokers Really Support Client Interests
Crypto Rollercoasters, Meme-stock Explosions and Nasdaq Highs – There’s Something for Everybody
Is This a Dip to Buy or the Start of a Market Correction?
Safest Forest Brokers 2020
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||Your capital is at risk Founded: 2011||Global CFD & FX Broker||
BEST FOREX BROKER Visit broker
|#2||Your capital is at risk Founded: 2015||Global Forex & CFD Broker||
LOWEST FEES Visit broker
|#3||Your capital is at risk Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#4||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#5||CFDs and FX are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 74-89% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Founded: 2010||Global Forex Broker||
Low minimum deposit Visit broker
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox