Bilateral monetary treaties - Iran's solution against sanctions?
Tehran, Iran, Oct.30
Using monetary treaties can facilitate money transfers and exports for Iran, but infrastructure should be provided for implementation, Chairman of Investment and Capital Committee of Iran chamber of commerce, Abbas Argon told Trend.
“Any form of agreement which facilitate monetary transfers can reduce the impact of US sanctions. In this regard, we need to increase our engagement with other countries and expand trade relations,” said Argon.
“Iran has to use the bilateral monetary treaties to increase economic resilience, facilitate the flow of finances, address the domestic demands and provide an export platform,” he said. “Of course, the use of bilateral monetary treaties can be with countries that have a good deal of business relations with Iran.”
"We must never forget that other countries should also come to a consensus on using these monetary treaties to get rid of the monopoly of the US dollar and find the alternative to it. Although the full elimination of the US dollar is not possible, the alternative can minimize its impact,” the analyst said.
"Taking steps in this direction requires the provision of infrastructure and bilateral cooperation to implement this plan with different countries,” he noted.
US President Donald Trump announced in May that Washington was pulling out of the nuclear agreement, officially known as the Joint Comprehensive Plan of Action (JCPOA), which lifted nuclear-related sanctions against Tehran in exchange for restrictions on Tehran's nuclear program.
A first round of American sanctions took effect in August, targeting Iran's access to the US dollar, metals trading, coal, industrial software, and auto sector. A second round will be targeting Iran's energy sector and financial transactions.