The governor of Tehran’s central bank says Iran might well use the frozen funds released to it under its deal with Washington to buy US farm products, AFP reports.

But Abdolnaser Hemmati, in a video message, has denied US President Donald Trump’s declaration that the agreement obliges Iran to spend the money on American exports.

Hemmati confirms that the initial $12 billion released to Tehran was to be used to buy “essential goods and medicine”, adding that this would free it to spend its regular funds on whatever it wants.

Trump said Tuesday that Iran’s money would be “used for the purchase of food and medical supplies, exclusively from the United States, including corn, wheat, and soybeans from our great American farmers.”

But Hemmati reassured his fellow Iranians: “That is not true. There is no such requirement in the memoranda that were signed during the negotiations.

“There is no obligation to buy from the United States,” he insists. “However, we also see no problem with purchasing from the United States if the price and quality of essential goods — whether corn, wheat, or any other products we need — are competitive.”