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‘Iran found new way to dodge sanctions’

4 May 2015 15:50


Iranian policymakers are hailing a recent initiative by the country to trade with Turkey and Russia in local currencies as a tactic to dodge the US-engineered sanctions.

MP Gholam-Ali Jafarzadeh has told the media that the initiative provides an efficient mechanism to make what Iranians have frequently referred to as “the cruel sanctions” ineffective.

“In fact, the more such deals [with other countries to trade in local currencies] are signed, the less effective will be the cruel sanctions,” Jafarzadeh told the Persian-language newspaper Aftab-e Yazd.

This follows an announcement on Sunday that Iran is preparing to launch a trade mechanism with Turkey in which the two countries settle payments in their own local currencies.

Officials had earlier announced that a similar mechanism with Russia had already been made operational.

Aftab-e Yazd has further quoted officials from the Central Bank of Iran (CBI) as saying that a similar deal has been signed with Iraq, but concrete measure to start trading with the country in local currency has not been taken yet.

MP Jafarzadeh emphasized that Iran needs to sign more deals with other countries to better reduce the effects of the sanctions.

Nevertheless, he emphasized that Iran needs to take measures to boost rial against other currencies to better exploit this mechanism.

Meanwhile, there have also been criticisms against the initiative. Albert Beghzian, an Iranian economist, believes that the mechanism to trade in local currencies would mostly benefit other countries rather than Iran.

“They [easily] sell their goods to Iran but when it comes to buying Iran’s goods, they try to get a good bargain,” Beghzian said.

Besides, he added, the currencies of Russia, Turkey and Iraq have seen severe fluctuations recently.

A feeling of uncertainty among officials over the efficiency of this mechanism has also been underscored by Aftab-e Yazd. It has specifically highlighted remarks by officials that a proposal for bartering goods is also on the table with the countries with which Iran has reached a deal to trade in local currencies.

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