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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)
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