Iran to accept payment in gold from trading partners

http://en-maktoob.news.yahoo.com/iran-accept-payment-gold-trading-partners-174629165.html


By Tim Pearce | Reuters



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TEHRAN, Feb 28 (Reuters) - Iran will take payment from

its trading partners in gold instead of dollars, the Iranian

state news agency IRNA quoted the central bank governor as

saying on Tuesday.

Iranian financial institutions have been hit by sanctions

imposed by the United States and the European Union in an effort

to force Tehran to halt its nuclear programme.

Significant difficulties in making dollar payments to

Iranian banks have forced Iran's trading partners to look for

alternative ways to settle transactions, including direct barter

deals.

"In its trade transactions with other countries, Iran does

not limit itself to the U.S. dollar, and the country can pay

using its own currency," central bank governor Mahmoud Bahmani

was quoted as saying. "If a country should so choose, it can pay

in gold and we would accept that without any reservation."

The sanctions include a phased ban on importing oil from

Iran, which EU member states are to implement by July.

China and India, two of the largest consumers of Iranian

oil, have said they will continue imports, but Japan and Korea

have announced cuts to quotas following pressure from the United

States. As a result the value of Iran's rial has plummeted,

pushing the price of goods sharply higher across the country.

Western countries believe Tehran is trying to establish a

nuclear weapons capability, and the United States and Israel

have not ruled out military action against it. The Islamic

Republic says its nuclear ambitions are peaceful and that it

will hit back if targeted.

(Reporting by Hashem Kalantari; Writing by Marcus George;

Editing by Tim Pearce)