News / Iran Today

Iran’s Strategy to Tackle Dollar Sanction

Tuesday, 04 September 2018 12:12 PM [ Last Update: Tuesday, 04 September 2018 12:12 PM ]

Following the unexpected soar of US dollar, Iranians have offered joint monetary agreement with their major trade partners. The devaluation of Iranian rial against US dollar is said to have many reasons beyond the sanctions and the US withdrawal of the deal. Many economists point finger at the current administration's non-expert economic decisions. One way ahead of Iran to tackle this problem which has been also mentioned in the 6th development plan is to ditch the US dollar and seal joint monetary agreement with its major trade partners that is China, India, Turkey, Russia and some others. In the current bad economic situation and the US second round of sanctions in a few months ahead, the administration needs to cut down on its expenses and take immediate measures to reduce the liquidity. It is also expected to organize suitable financial markets like the stock exchange. In Iran, the banking network does not direct monetary funds towards production. Its policies, whether intentionally or not, are in the benefit of imports, speculations and unprofitable economic activities. All these and many other reasons such as the high dependence on the oil revenues have caused the Iranian Rial depreciation against the US dollar. Iran; however, has decided to swap currencies; that is to use the national currencies of each of its major trade partners in the transactions. This way some experts say that the US dollar will lose its creditability and power.

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