The chief of Iran's central bank stated that the depreciation of the Korean won has caused the country's blocked assets in South Korea to drop from about seven billion dollars to one billion dollars.

According to Iran's state-run Islamic Republic News Agency (IRNA) on Saturday, Central Bank of Iran (CBI) Governor Mohammad Reza Farzin said the assets had been frozen at South Korean banks for several years with no interest.

The CBI chief said that all of the funds in South Korea have been unfrozen, adding that they were transferred to a third country, reported to be Switzerland, to be exchanged into the euro currency.

The exchanged funds are expected to be wired to accounts at six Iranian banks in Qatar and are to be spent for the purchase of "unsanctioned goods."

According to Reuters, Farzin announced on social media that the money had been converted to euros and that the third country would pay the conversion fees.

Earlier, the United States and Iran reached an agreement to unfreeze the assets placed under U.S. sanctions by the previous Donald Trump administration in 2018, as well as a prisoner swap that frees five Americans who are currently in prison in exchange for several jailed Iranians.