Iran replaces dollar with euro in foreign deals

Iran Materials 22 December 2006 15:32 (UTC +04:00)

(IRNA) - The Iranian government prepared ground for replacement of dollar with euro and other foreign exchanges, Secretariat of the government's information dissemination council said on Friday.

The Economy Council, during its session chaired by President Mahmoud Ahmadinejad on December 2, approved a ratification to transform dollar-denominated forex activities into euros, reports Trend.

Based on the ratification, the Central Bank of Iran (CBI) is obliged to change foreign exchanges in all previous and future approvals of the Economy Council from dollar into euro or other forex while equalizing the rate of dollar with demanded forex.

The ratification was ordered to all ministries, the CBI and the Management and Planning Organization.

Use of monetary base "rial/euro" was among characteristics of budget bill for the next Iranian calendar year.

Currently, measures are being taken to use forex except dollar in transactions and oil investment.

Surveys showed an international welcome for Iran's decision to replace US dollar with euro while a number of other countries also adopted a similar measure.

The International Finance Institute (IFI), which is a
representative of 335 private banks in the world, has previously announced that Arab states of the Persian Gulf intend to change their forex reserves into euro to create more opportunities for investment.