Iran Bans Use Of US Dollars In Trade

In what may be a preemptive move against further US sanctions, Tehran announced that going forward, merchant purchase orders that are denominated in US Dollars would no longer be allowed to go through import procedures.

According to the state-owned IRNA news agency, the policy is in line with an official request by the Central Bank of Iran and is meant to address fluctuations in market rates of the US dollar. Quoted by IRNA, the central bank director of Foreign Exchange Rules and Policies Affairs, Mehdi Kasraeipour, said the move had "become effective from Wednesday by virtue of a letter sent to the Ministry of Industry, Mines and Trade."

The central banker further explained that the decision "wouldn’t create major trouble" for traders because the share of the greenback in Iran’s trade activities is already negligible.

"It’s been for a long time that Iran’s banking sector cannot use the dollar as a result of the sanctions," said Kasraeipour. As part of a trade embargo, US banks are banned from dealing with Iran.

"Considering that the use of the dollar is banned for Iran and traders are literally using alternative currencies in their transactions, there is no longer any reason to proceed with invoices that use the dollar as the base rate," Kasraeipour added.

As part of the transition, Iranian merchants will need to inform their suppliers to change the base currency from the dollar to other currencies so that the related import documents could be processed at Iran’s entry points. It was unclear if cryptocurrencies are acceptable units, and whether Iran is developing its own version of the Venezuelan Petro.

Merchants will also need to specify whether they would proceed with their payments through banks or currency exchange shops.

Ever since the crackdown on the Iranian banking sector by the US and SWIFT some 5 years ago, Tehran has sought to switch to non-dollar based trade. It has already signed agreements with several countries and is in talks with Russia on using national currencies in settlements.

Last December, Iran announced that it would eliminate the dollar from all bilateral trade with China, which has fast emerged as one of Iran's largest crude oil clients.

Previously, during a meeting with Russian President Vladimir Putin in November, Iranian Supreme Leader Ali Khamenei said that the best way to beat US sanctions against the two countries was joint efforts to dump the American currency in bilateral trade. He told President Putin that by using methods such as eliminating the US dollar and replacing it with national currencies in transactions between two or more parties, the sides could “isolate the Americans.”

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As Federico Pieraccini previously noted, until a few decades ago, any idea of straying away from the petrodollar was seen as a direct threat to American global hegemony, requiring of a military response. However, in recent years, it has become clear to many nations opposing Washington that the only way to adequately contain the fallout from US retaliation was to progressively abandon the dollar. This serves to limit Washington’s capacity for military spending by creating the necessary alternative tools in the financial and economic realms that will eliminate Washington's dominance. This is an essential component in the Russo-Sino-Iranian strategy to unite Eurasia and thereby render the US irrelevant.

De-dollarization for Beijing, Moscow and Tehran has become a strategic priority. Eliminating the unlimited spending capacity of the Fed and the American economy means limiting US imperialist expansion and diminishing global destabilization. Without the usual US military power to strengthen and impose the use of US dollars, China, Russia and Iran have paved the way for important shifts in the global order.

Comments

DillyDilly peddling-fiction Thu, 03/01/2018 - 14:28 Permalink

"Bitcoin will hit $100,000 soon... get ready!"

 

I mean, COME ON! RETARDED PEOPLE... I'm getting pretty fucking sick & tired of people trying to claim an asset is or will be this or that...

 

Then (drumroll)... PRICING the motherfucking thing in DOLLARS!!!

 

Jesus H Christ ~ I'm an owner of PHYZZ, and a HODL'er... But this MF'ing 'pricing' mechanism (in 100 year old paper joobux confetti) annoys the shit out of me.

In reply to by peddling-fiction

MK ULTRA Alpha RougeUnderwriter Thu, 03/01/2018 - 14:19 Permalink

LOL Iran said the other day, that Iran would leave the nuclear agreement if international banks stayed away. Now we hear Iran won't use the dollar in international transactions.

I don't think the US is keeping banks from Iran. No bank in their right mind would loan Iran money.

I don't like Jews and Israel and I don't like the Iranians. I'm disappointed in the US because it is a beast of burden for Israel.

It is unfortunate that the Golan oil find of billions of barrels which is technically Syrian territory, it's unfortunate that the Americans will never know about the Israeli theft of crude oil.

But what's really worse, is the fact Israel is working feverishly to make the US attack Iran. I had a little hope, this would change and if Israel wants to attack Iran, then Israel should do it. Now Russia is preventing Israel from a war with Iran. I thought until the recent air war and the Putin call for Israel to cease fire, well I thought Israel was stepping up to the plate. Now it's back to Israel trying to get the US to fight for them and I think Trump will do it.

Trump needs to leave all the people alone, stop twittering and ignore them, and on foreign affairs, he needs to not listen to the generals and concentrate on the economy and the US trade deficits. That's it, because it's real dangerous when Putin is dictator for life and now Xi is copying the example of dictator for life.

Anything can happen when a dictator tries to hold on to power.

In reply to by RougeUnderwriter

Brazen Heist MK ULTRA Alpha Thu, 03/01/2018 - 14:24 Permalink

Do you think the shit they shuffle around every 4 years makes any difference? The elected government is not in charge. The shadow government is. These Oligarchs have pulled off a covert (now its overt) dictatorship in America since WW2 when the Nazis escaped to NASA and the CIA. Some would even argue it goes much further back with the hostile takeover of the Fed.

The US is an oligarchy just like the others. The only difference is how they pull it off.

The Jews bought America after WW2. Now they are running it into the ground for their little Zion. 

In reply to by MK ULTRA Alpha

venturen Thu, 03/01/2018 - 14:02 Permalink

our fiat bets your fiat....who has the cleanest fiat. And do give me those bit based infinite zero currencies that can be gone with the next upgrade or power outage.

JibjeResearch Thu, 03/01/2018 - 14:05 Permalink

Iran is dumb, it's bad for their economy.  But, because we treated them poorly, they do the shit that will hurt the USD more even if it hurts them a little.

This is the result of the US's MAGA.

Ink Pusher Thu, 03/01/2018 - 14:06 Permalink

At the rate Tehran is going ,Iran isn't going to have any friends left by the end of April except China , Turkey and India and that combined trade total is still under $23 Billion .LOL 

 

besnook Thu, 03/01/2018 - 14:18 Permalink

this means the cips system is up and running smoothly. the lid for the coffin is in place. the nails are about to be hammered in place.

Brazen Heist Thu, 03/01/2018 - 14:19 Permalink

The US has abused its exorbitant privilege and weaponized the US dollar.

This inevitably begets hostile responses.

Monopolies are bad, especially with power and money. Trusting the reptiles in DC to act responsibly is a bad proposition. An empire on the decline does stupid things to preserve power. Things like shooting itself in the foot and trampling on its values, and browbeating allies like expendables.

Our only hope is a multi-polar world where the US beast is reigned in and contained. But the bad losers won't gracefully go. Instead they'll linger around like a bad smell and clinger on to the former glory and shit on everyone.

Montana Cowboy Thu, 03/01/2018 - 14:22 Permalink

The US fabricates its best terrorists stories, deploys its most ingenious false flags, and drops its biggest bombs in response to disrespect for that green and white paper. Putin must have made assurances to Iran.

I think the US is toast in a war because our shit doesn't work. It wasn't designed to work. It was designed to make money for defense contractors. Russia doesn't have that corrupt layer. Their stuff works. But then there is Israel. Who knows?

Offthebeach Thu, 03/01/2018 - 14:23 Permalink

WOOP De DO. 

Wonder what took them so long?

The Russians, Chinese, Iranians are such stellar paragons of virtue that they can't but prosper outside of dollars.