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.”

* * *

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

giovanni_f stizazz Thu, 03/01/2018 - 14:15 Permalink

US pressure creates both, the need for and a showcase of successfully avoiding the USD in its entirety.

This is clever. Smart. Shrewed. Cunning...

...if the plan of the US geniusses is to accelerate the de-dollarization.

In reply to by stizazz

Chupacabra-322 brianshell Thu, 03/01/2018 - 14:40 Permalink

@ brain,

 

Dont you mean the Mossad via Pakistan?

 

Jim Willie puts it so eloquently:

 

The rise of the non-USD platforms is very powerful and gaining enormous momentum. While the United States is busy igniting wars like in Ukraine, Syria, Djibouti, Yemen, with furtive efforts to engage armed conflict in more nations like Iran, North Korea, and the South China Sea, the Eastern Hemisphere has gone on strike with respect to the King Dollar Court and its not so hidden war of terror in the currency defense. Clearly the United States is using war to defend the USDollar. Today’s presidents are fully committed to predatory wars, fascist political structures, narcotics trafficking, currency pegs, banker privilege, and bond fraud.

 

The rebellion from the East will be coordinated, broadbased, and severe in its effect. The paper mache armor constructed by the fascist tag team of the USFed and USDept Treasury cannot stop a bullet, cannot avoid fire, and cannot serve in the financial war. The rise of non-USD platforms is the battle cry waged against the King Dollar, whose financial war takes place in the global seas of false liquidity poured out by the banker cabal and subservient central bank franchise system.

In reply to by brianshell

gallistic monk27 Thu, 03/01/2018 - 17:07 Permalink

Monk, I do not mean to make it personal and aggravate you unnecessarily, but I completely disagree. If Jimbo is your #2, then your list really sucks, and could use a revision.

His product is an interesting mix of truthiness and conspiracy. The golden jackass has to periodically throw his acolytes a bone, and try to keep their attention. This is his livelihood and what he does. If one looks objectively at his entire record- which is fairly long- the conclusions one can draw are just flat-out terrible.

Even a broken Clock is right twice a day.

In reply to by monk27

TheGardener giovanni_f Thu, 03/01/2018 - 16:28 Permalink

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

 

That is developing countries double speak of how to measure capital flow because all the flight and hot money owned by the locals always were almost hard to track ever getting attention from their leaders only if the outflows reached a threshold beyond the mean.

Never in control they never cared but relationship banking dominance in those markets

has always been their strength.  Funny how they go out of their way to mention those

currency exchange shops. As you know by now they are all tribe operated and there must have been some serious under the curtains curtailing operation out of Israel to impede

the fully free flow of moneys they have always been facilitating as a means of honour to their trade no matter for whom.  I still can`t believe, every third world country has a very limited largely restricted by World Bank and IMF means of payment in perpetual debts only .

Currency exchange shops in Latin America could give you a very good picture of what part of FDI (foreign direct investment) was just reversing flight capital after a foreign (usually US and more often than not Delaware L.C. non traceable) company would happily reinvest hard earned flight capital back into the economy but withdraw any excess liquidity at the slightest of political instability.

Way back when La Silva gained in the polls , those money exchangers were booked flat out for transfers out.

Relationship banking is just another dimension and much closer to real banking.

Iranians scolded and with their backs to the wall they`d have some story to tell.

Needlessly so they seemingly try to track ; attack ? the good old honoured middle eastern relationship banking ways meaning they are being some how locked out after

millenia in an act of war by the money changers.

 

 

In reply to by giovanni_f

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

DillyDilly messystateofaffairs Thu, 03/01/2018 - 15:07 Permalink

I don't need to price it in loaves of bread... I own Type 0 & Type 00 Flour, semolina, tapioca flour, & rice flour, sea salt, & I have a well on my property for water... I lived half my adult life in Italy, owned property that had 3,000 year old olive trees on it that I 'cold pressed' the olives on it each year, but still think that HALUTZA evoo (from Israel), compares favorably to even my own UMBRIA cold pressed... & whatever, or not, I think about Israeli's, I don't SKIMP on food...

 

Unlike the 80% PIZZA DOUGH clown (from other threads)... I don't even need to be tutored how to use them... To make an 80% 'decent' pizza...

In reply to by messystateofaffairs

DillyDilly Wrenching Away Thu, 03/01/2018 - 15:43 Permalink

Do it right & you'll be a happy camper...

 

It's not terribly difficult (from a technical standpoint), & DO TAKE CARE with regards to proximity... But if u get it right? You'' be a happy camper...

 

Just don't listen to THIS GUY...

 

https://www.zerohedge.com/comment/reply/node/613807/comment/11258359

 

& whereby I replied...

 

https://www.zerohedge.com/comment/reply/node/613807/comment/11258575

 

Who assures you that he has mastered the 80% RULE to make 'PRISON HOOCH' fucking taste like LOUIS XIII cognac

In reply to by Wrenching Away

MontgomeryScott peddling-fiction Thu, 03/01/2018 - 21:49 Permalink

I canna' stand it, laddie!

I laughed so hard... Is Johnny-boi 'Songbird' McFUCKStain (that treasonous McManchurian mother-fucker) really 'blue-pilled'?

<S>

I have had the same condition (I don't know what a 'priapism' is, though). I was told that if this condition lasted for more than four hours, I should go see a doctor! It's NOT a tumor, though (my swollen and engorged main man-unit of ever-loving pleasure)... and the head that I am talking about only has one eye and no brain at all...

<S> off

 

 

In reply to by peddling-fiction

veritas semper… DillyDilly Thu, 03/01/2018 - 23:37 Permalink

Love the Persians. Intelligent,having honor,courage and resilience.

Now they have big friends ,with big guns.

JUSA and its petro-f*cking-$ are sooo done .

LOL

And if you think Iran's economy is small , ask yourself why all the nations(see all Europeans,China,India,Pakistan,etc) are tripping over themselves to do business  with them. Now outside the $.

The consequences of abusing the $ and the financial system.

The rest of the world is sick of your BS ,Uncle Shlomo!

 

 

 

 

 

 

In reply to by DillyDilly