With sanctions pressure looming from the United States, the Central Bank for OPEC-member Iran said it was looking to swap currencies with neighboring Turkey.
In an effort to facilitate trade, the Central Bank of Iran said during the weekend it put monetary treaties and currency swap mechanisms high on the agenda with its major economic partners. Its first line of credit was opened with Turkey last week.
“It should be noted that there is no need for a third currency such as the U.S. dollar or euro in this model to settle foreign exchange,” the bank said Saturday. “By using this method, all purchases, transfers and financial transactions have been transferred to the banking system through currency operations and the risk of business operations between the two countries will be minimized.”
The economic arrangement with Turkey could give Iran a way to continue trading should it face renewed sanctions pressures in May.