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Iranian expert: weakening US dollar necessary to cut it out from Iran's trade

Business Materials 18 March 2019 14:45 (UTC +04:00)

Baku, Azerbaijan, Mar. 18

By Elnur Baghishov – Trend:

The US dollar can be removed from Iran's trade turnover system once its strength is weakened, Iranian economist expert Bahaeddin Hosseini Hashemi told the Young Journalists Club (YJC), Trend reports.

According to Hashemi, the dollar is one of the currencies that have become internationally widespread.

Hashemi added that this global role held by the dollar cannot be turned a blind eye to. But effort can be put in order to weaken it.

"Many countries, including Germany, France, China, the EU and Russia, have worked to boost their currencies and have managed to achieve some success," he said.

This is, in fact, a kind of a signal from all countries – that is, they want to break free from the US’ economic pervasiveness, according to the economist.

When the US wants to leave any country cornered, it enters an economic war by prohibiting the US dollar from being used in exchanges and trade.

"The best way to weaken the influence of the dollar and to decrease its value is to reduce its strength and to use own national currencies with other countries in the trade turnover," he said.

The Iranian economist said that the transition from the dollar to the euro in the trade turnover is very costly.

Hashemi added that the dollar is losing its position, as the major threat to this currency is the refusal of its use by other countries.

"Another threat weakening the dollar is crypto-currencies entering the exchange and investment markets," he said.

Hashemi added that Iran should remove the dollar from exchanges, but not forever and not at once. A part of the import and trade turnover should be conducted in this currency.

"Bilateral and multilateral money deals are among the best ways for Iran to break free of the dollar’s supremacy," he said.

The economist said that Iran has already signed such agreements with Turkey and Russia, but has not yet succeeded in their full implementation.

Hashemi expressed hope that the Central Bank of Iran will make additional effort for the signing and execution of bilateral monetary agreements.

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