Currency Swaps and Challenges

The Monetary and Banking Research Institute (MBRI), the research arm of Central Bank of Iran, has looked into challenges ahead of Iran’s currency swap agreements and offered solutions.
Political tensions and tough penalties imposed by the US economic sanctions, high inflation and sharp volatility in forex rates, poor performance of banks, uneven import-export numbers and skewed interest rates between trading partners are listed as the biggest challenges ahead of Tehran’s currency swap deals with other countries, the MBRI website reported.
Highlighting the role of currency swaps and “de-dollarization” in mitigating the impact of the sanctions on the economy, the MBRI said such deals can end the sanctions-hit nation’s dependence on the US dollar and help eliminate trade barriers imposed by Donald Trump’s America. 
Iran has currency swap deals with several countries, namely Iraq, Turkey and Russia.