19 Apr 2018
Iran will start reporting foreign currency amounts in euros rather than U.S. dollars, state media said on Wednesday as part of the country’s effort to reduce its reliance on the U.S. currency due to political tension with Washington.
The new policy could encourage government bodies and firms linked to the state to increase their use of the euro at the expense of the dollar.
Central bank governor Valiollah Seif said last week that Supreme Leader Ayatollah Ali Khamenei had welcomed his suggestion of replacing the dollar with the euro in foreign trade, as the “dollar has no place in our transactions today”.
Tehran has been trying for years to move away from the dollar, although much of the country’s international trade is still conducted in dollars and ordinary Iranians use them for travel and savings.
U.S. President Donald Trump has threatened to exit a 2015 nuclear deal Iran made with world powers unless it is revised. U.S. sanctions will resume unless Trump issues new “waivers” to suspend them on May 12.
Bank transactions involving the dollar are already difficult for Iran because legal risks make U.S. banks unwilling to do business with Tehran. Foreign firms can be exposed to sanctions if they do Iranian deals in dollars, even if the operations involve non-U.S. branches.
– By Bozorgmehr Sharafedin, Reuters, 18 April 2018
Link to the Reuters story.
Advance your CPD minutes for this content, by signing up and using the CPD WalletFREE CPD Wallet