Tehran, Iran, May 1
By Mehdi Sepahvand - Trend:
Iranian lawmakers have passed a law that requires the government to lay grounds for the creation of monetary agreements with the governments of other countries.
Accordingly, the Central Bank of Iran is obliged to conduct necessary cooperation with other ministries to arrange monetary agreements with Iran's major trade partners, Tasnim news agency reported May 1.
The law requires the government to work toward both bilateral and multilateral agreements.
A note to the law says it should be passed by the cabinet within six months.
A monetary agreement is an attempt by two (bilateral) or more (multilateral) nations to regulate and coordinate their financial relations by treaty. The objectives are usually to promote trade by facilitating payment of international debts and to maintain in each nation a stable exchange rate by making available credits to meet temporary difficulties with balance of payments.
Iran is currently under a set of sanctions by the US that prohibit the countries to use the dollar in trade with the Islamic Republic.