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Iran denies has shifted assets from Europe
TEHRAN, Jan 21 (AFP) Jan 21, 2006
Iran on Saturday denied it has shifted funds out of Europe due to fears of economic sanctions over its nuclear programme, after a swirl of contradictory reports on whether such transfers had taken place.

A deputy central bank chief categorically denied that Iran was moving foreign currency out of Europe to Southeast Asia, in comments that appeared to flatly contradict previous reported remarks by the bank's president.

"At the moment, Iran does not have any schedule to transfer its foreign exchange accounts to the named countries," Mohammad-Jafar Mojarad told the state news agency IRNA when asked if Iran has transferred the accounts to Asia.

The public relations department of the central bank also moved to say that any statements that claimed funds had been moved out of Europe were false.

"Management of foreign exchange reserves... will be followed as before. Therefore, whatever recently was published quoting the central bank and outside this framework are rejected," the student news agency ISNA quoted a central bank statement as saying.

The head of the central bank, Ebrahim Sheibani had said on Wednesday, in comments that were only reported by Iranian news agencies on Friday, that Iran was moving funds from Europe elsewhere.

"We transfer foreign currency reserves related to all sectors including oil foreign exchanges to wherever it is good for us and we have started this transfer," Sheibani was quoted as saying.

The Iranian news agencies who reported the remarks said he was responding to a question over whether reports Iran was moving foreign accounts of hard currency from Europe to southeastern Asia were correct.

Sheibani himself however on Saturday rejected the idea that such transfers had already taken place, even though he left the door open for such a possibility in the future.

"We will transfer Iran's foreign accounts whenever we believe it is necessary," Sheibani told state television.

The United States said on Friday that any Iranian move to transfer currency deposits away from Europe would be a sign of growing isolation amid heightening tensions over its nuclear programme.

US State Department spokesman Sean McCormack said such market manoeuvres would not deter moves to refer its nuclear activities to the UN Security Council.

"I think it is an indication that Iran is further isolating itself from the rest of the world," McCormack told a press briefing. "I don't know what it is that they hope to accomplish by doing this."

The international crisis over Iran's nuclear programme escalated when the Islamic republic resumed sensitive uranium enrichment research on January 10, despite calls by European negotiators to maintain a halt to such activities.

London, Paris and Berlin called an emergency meeting of the International Atomic Energy Agency for February 2, as Western countries aim to gather support for referring Iran to the UN Security Council for possible sanctions.

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