Iran Prepares to Ditch Dollar
After US President Donald Trump included Iran on a list of Muslim-majority countries facing a temporary immigration ban, Tehran responded by threatening to stop using the American dollar.
Iran would either introduce a new common currency, in place of the US dollar, or use a portfolio of various currencies in foreign exchange and financial reports, according to Valiollah Seif, governor of the Central Bank of Iran.
Iranian media quoted Seif saying that the initiative would begin in March 2017, at the start of the fiscal year.
Seif noted that the US dollar’s share in Iran’s foreign exchange is insignificant, and that its replacement should be suitable for trade with important partners like the United Arab Emirates, Russia, China and the European Union.
Some analysts have suggested that Tehran stands to make $41 billion in oil profits this fiscal year alone, and that switching from the dollar could pose a considerable financial risk. Iranian economic publication Donya-ye Eqtesad observed, however, that the dollar has already been largely replaced by other currencies in oil transactions, and that Tehran has been chiefly using it in official reporting.
source: sputniknews
