Economy, Business And Markets

Dollar No More

Dollar  No MoreDollar  No More

Iran is no longer using the US dollar in its foreign trade as direct exchanges are used with its main trading partners, according to the Central Bank of Iran’s deputy governor. The central bank is doing so to reduce the impact of financial sanctions against it, as foreign banks are required to abide by US restrictions on business with Iran because they clear dollars in the US and are subject to oversight by the Federal Reserve Board of Governors. Iran is under sanctions by the UN, US and EU, over the scope of its nuclear activities. Currently, the dollar is not used as an intermediary for Iran’s trade with its main partners, Foreign Exchange Deputy Governor of the CBI Gholamali Kamyab said. Other foreign currencies such as the Chinese yuan, euro, Turkish lira, Russian ruble, and Korean won are directly exchanged into rials and vice versa, he added.  Talks are underway to further incorporate direct currency exchanges in trade with other countries, instead of exchanging rials into dollars and then into another currency.