FM: Iran to Bypass US Sanctions by Trade in Other Currencies

By FARS News Agency

“The actual mechanism would be to avoid dollars,” Washington Post quoted Zarif as telling reporters at a roundtable at the Iranian mission to the United Nations in New York on Saturday evening.

He added that countries are starting to make agreements to use their own currencies in bilateral trade, according to the paper.

“You can use your own currency,” he explained. “Sell stuff in your own currency, buy stuff in the other country’s currency, and at the end of a specific period, balance it out in a non-dollar currency. It’s quite possible and may even be profitable.”

According to Washingtosn Post, Zarif said Iran might pull out of the nuclear deal if the special mechanism being created by the Europeans doesn’t work. Asked if that would open the door to a US military attack, he said, “I think if the United States believed it could succeed in such an attack, it would have done so.”

In relevant remarks on Friday, Zarif announced that Europeans’ efforts to provide Iran with a financial mechanism to save the Joint Comprehensive Plan of Action (JCPOA) would come into effect in the coming weeks.

“The Europeans have made great efforts over the past few months, and at least seven central banks have agreed to create a special financial mechanism to have relations with Iran and in the near future they will turn it into an institution,” Zarif said.

The Iranian foreign minister said that as far as Iran was concerned, the financial mechanism aimed at easing trade with the Islamic Republic would come into effect in the near future, adding, “But what they want is an institution that can work beyond Iran, which may take longer.”

He explained “as EU foreign policy chief Federica Mogherini said in a statement, the mechanism is not just for Europe in particular, but it is for other countries and companies that have financial relations with Iran in order for them to be able to put money in that account and withdraw exports costs from it.”

“This is a useful way to protect financial institutions against the US sanctions, which work with US dollars more than any other currencies and can be sanctioned by the US because of this even if they carry out transactions with Iran in euros,” Zarif added.

The Iranian foreign minister said that meant working with euros only, adding, “I think it’s a good way to get rid of one of US’ imposed mechanisms on the banking sector.”

This article provided by NewsEdge.