Thursday, April 06, 2006

Follow the Gold

Regime Change Iran has an interesting bit on the Irainian regime withdrawing 700 tons of gold and about $30 bn in currency from variious banks.

The regime-run FARS news agency quoting the Swiss newspaper, Der Bund reported that the Islamic regime has withdrawn 700 tons of it's gold reserves worth 6 billion Swiss Francs as well as 25 billion Swiss Francs in foreign exchange (equal to $30 billion) from financial institutions in the west.

Der Bund added that the Islamic regime transferred 250 tons of it's gold reserves, valued at 5 billion Swiss Francs directly to Tehran but that the foreign exchange was transferred to Asian banks located in the United Arab Emirates, specifically Abu-Dhabi and Dubai.

Approximately 2 months ago, two of Switzerland's biggest financial institutions, U.B.S. and Credit Swiss ceased all financial transactions with the Islamic regime.
Interesting. Now couple that with this reported at LGF
The new Hamas-led Palestinian government is struggling to find a bank willing to handle its finances, casting doubt on whether it can pay staff or receive foreign aid, Western diplomats and Palestinian officials said.

“You cannot run a government without having a bank,” said a Palestinian official familiar with the Palestinian Authority’s “single treasury account”, where foreign donors deposit funds so the Authority can pay 140,000 workers and cover other expenses.

A Western diplomatic source said Hamas’s difficulties in even finding a banker could “disrupt the entire payment system”.

Officials of Hamas, which is listed by Washington and the EU as a terrorist organisation and whose charter calls for Israel’s destruction, say the banking problem is part of an international campaign against the Islamist group.
So now we may know why the Iranians are rattling their sabers. They have been badly hurt. Evidently some one has decided that a good way to attack our enemies is to Follow the Money.

Update: 04:47z 10 April '06

Joe Katzman at Winds of Change has some interesting things to say about the money flows.

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1 comment:

Andrew of Arabia said...

Money makes the world go 'round. It's tired but true. Iran knows how to play that game as well. As one of the world's leading producers of oil, Iran can (an no doubt will) affect the world's oil supply merely through the power of suggestion. Rumours of an Iranian production decrease would likely force some smaller countries into recession as prices went through the roof. That is certainly a valuable arrow in Iran's quiver. That, and Hezbollah of course.

PS: Good work on the blog! Keep it up!