Iran urges use of alternative currencies in global trade

Governor of the Central Bank of Iran (CBI) Mahmoud Bahmani has called for the use of local currencies in the global trade system as alternative to dominant tenders.

Speaking on the sidelines of the D-8 meeting in the Pakistani capital, Islamabad, on Thursday, Bahmani pointed to the negative impacts of fluctuations in developed economies on the developing nations and emerging markets.

“Iran has taken proper measures to remove dominant currencies, particularly dollar and euro, from its foreign currency reserves as well as its international trade. [In doing this, Iran has shown that] it is possible to do trade without relying on major currencies,” he added.

The CBI governor also praised the remarkable growth in the volume of trade among the D-8 member states from USD527.24 million in 2006 to USD71 billion in 2011, and called for more concerted efforts to remove the existing trade barriers.

At the meeting of the governors of the D8 member states in Islamabad, Bahmani tabled a proposal for the establishment of a joint bank by the member countries which was welcomed by the participants.

The D-8 group comprises Iran, Turkey, Malaysia, Pakistan, Nigeria, Egypt, Bangladesh and Indonesia.

Egyptian President Mohamed Morsi, Indonesian President Susilo Bambang Yudhoyono, Nigerian President Goodluck Jonathan, and the Turkish Prime Minister Recep Tayyip Erdogan participated in the Islamabad summit.