Iran entirely abandons use of the US dollar in its business operations. From now on, according to the ban by the country’s authorities, import deals will no longer be made in US dollars.
If the dollar is still used in transactions, such declarations or orders for the import of goods will not be processed by the Iranian customs authorities.
Instead of the dollar, importers can use the Euro or other national currency of the countries supplying goods. The Iranian Central Bank assures that the cancellation of the US currency will not create problems in international transactions, since the US dollar is already used only for a small percentage of foreign trade operations, as Forbes previously reported.
However, according to the publication, the costs of imports will increase when using the Euro because of the double currency exchange.
This decision by the Iranian authorities may halt the continuing fall of the Rial, which has already fallen in price since the beginning of the year by 8%. In 2017, the Iranian currency rate fell, but the situation might be saved by reducing the demand for dollars inside the country.
In November 2017, during a meeting with Russian President Vladimir Putin, Iran’s supreme leader Ayatollah Ali Khamenei said that cooperation between Tehran and Moscow would help isolate the United States. According to the leader of the Islamic Republic, the refusal to use the dollar can support this strategy, becoming its component.