Iran to ditch US dollar for regional trips amid sanctions

Iran to ditch US dollar for regional trips amid sanctions

Baku. TurkicWorld:

The Central Bank of Iran (CBI) will soon implement a plan for Iranian citizens not to use US dollars on trips as tourists to regional countries, Director General of the CBI Mohammad Reza Farzin said, TurkicWorld reports.

“In recent days, Iraqi dinars, instead of US dollars, were sold to Iranian citizens who visited Iraq in order to participate in a religious ceremony. This was tested as a pilot on the plan of the Central Bank of Iran,” Farzin noted.

The director general added that the required amount of Iraqi dinar has been provided to Iranian banks so that there are no problems in selling the dinar to Iranian citizens.

According to him, currently, US dollars and euros are sold to Iranian citizens when they travel to other countries.

"Meanwhile, Iran’s trade with other countries is mainly carried out in other currencies except the US dollar," he said.

On May 8, 2018, the US announced its withdrawal from the Joint Comprehensive Plan of Action (JCPOA) between Iran and the 5+1 group (Russia, China, the UK, France, the US, and Germany), and imposed new sanctions against Iran as of November 2018. Over the past period, the sanctions affected Iranian oil exports, more than 700 banks, companies, and individuals. The sanctions have resulted in the freezing of Iranian assets abroad.

Also, the sanctions have created serious problems for bringing US dollars to Iran and Iran's trade with US dollars.

According to the official exchange rate of Iran, $1 equals 42,000 Iranian rials, and 1 euro equals 44,977 rials, while in the black market, $1 is worth about 494,000–497,000 rials, while 1 euro is worth about 529,000–532,000 rials.