Nuclear deal great opportunity to end Iran’s isolation

/By AzerNews/

By Sara Rajabova

The nuclear agreement was like a spirit bomb that exploded in Iran, leading to renewed hope of future progress for the people of Iran.

Mohammad Reza Sabzalipour, the president of World Trade Center Tehran, made the remark in an interview with AzerNews commenting on the opportunities that the nuclear deal would open for the Islamic Republic.

The nuclear deal between the P5+1 and Iran that was clinched in Vienna on July 14 promises to bring big profits to the country after the removal of the international sanctions, ending the country’s isolation.

“The nuclear agreement gives Iran a great opportunity as Iran comes out of political, economic, and international isolation and attains an alliance with the world, especially with the West. This alliance is good for both people of Iran and the West, because it provides an opportunity for Iran for further interaction with others whether through trade, investment, and tourism or for talks on regional issues,” Sabzalipour said.

He noted that the agreement will undoubtedly create a positive atmosphere for Iranian economy.

The economist said the lifting of sanctions, meant to remove the long and difficult barriers that challenged Iran’s economic activities in past years, will open money transfer channels, reduce inflation as a result of foreign trade, facilitate investment in Iran’s industrial and economic sectors, as well as return blocked foreign exchange sources to the government and economic companies.

He added that these factors can create a positive atmosphere and will be beneficial for the average Iranians.

However, Sabzalipour also warned that if the government does not correctly control the situation, it could blow up like a balloon into an economic bubble and explode frighteningly sooner or later.

“In the second instance, practical effect of measurements and actions which correctly carried out can undoubtedly place a positive effect on Iran’s economy. However, the danger threatening Iran is that government returns to old tradition of ‘sell oil and purchase goods’,” the economist added.

The nuclear agreement is believed to facilitate economic relations between the West and the Islamic Republic. Many companies representing different sectors of the economy have voiced their intentions, and some of them even engaged in talks with Tehran with the hope of returning to the vast Iranian market immediately after the removal of sanctions.

Sabzalipour further said the Vienna agreement is not only important for Iran from the economic aspect, but it is also important for other countries in the world, especially for Europe.

“Because the old partners of Iranian economy have not craved less than our economic activists to see opening of closed ways,” he said.

Europe’s high-ranking officials and representatives of the different companies visit Iran with a purpose to restore broken relations after the nuclear deal, which sought to solve a decade-old nuclear dispute.

The economist further added that Iran’s access to the Society for Worldwide Interbank Financial Telecommunication (SWIFT) system is another great milestone that will lift bans on Iranian banks.

He noted that SWIFT is the first priority for Iran to facilitate foreign trade and international economic relations, since it will affect all trading, agricultural, and industrial changes.

Gholamali Kamyab, the deputy governor of the CBI for foreign exchange affairs recently said the country’s state-run banks will soon rejoin SWIFT once Iran's nuclear agreement enters into effect.

In early 2012, SWIFT announced that under pressure from the European Union, it had decided to discontinue communication services to Iranian banks and financial institutions that were subject to European sanctions. Accordingly, it blocked 30 Iranian banks from using its services, literally cutting off Iran from the global banking system.

Despite the ban on state-run banks, all Iranian private banks were still connected to the SWIFT system as they were not covered by EU sanctions and could avail themselves of the services provided by the financial network.

Sabzalipour noted that the agreement gives hope that great opportunities will emerge and many improvements will be seen in Iranian economy in the near future.

“It is good, considering positive experiences of Lausanne and Vienna agreements, Tadbir va Omid (‘Prudence and Hope’) government try to use similar and powerful teams for economic diplomacy to figure out grand changes in various sectors,” he said.

Under the agreement, known as the Joint Comprehensive Plan of Action, all economic and financial sanctions against Iran will be removed. In addition, all bans on Iran’s Central Bank, shipping, oil industry, and many other companies will be lifted.