A Member of the Chamber of Commerce: 'Dollarization' is Ideological

As Iranian officials strive to find a way to bypass the dollar in global transactions, a member of Iran's Chamber of Commerce believes that 'dollarization' is an ideological action and that the country's economy cannot bear 'marginal discussions.' According to Mehrdad Abad, a member of the Tehran Chamber of Commerce, in a situation where the Iranian economy is grappling with sanctions, dollarization and the fight against the dollar are not the top priorities of Iran's economy. Abad argues that as long as Iran remains on the FATF blacklist and importing companies are waiting for currency allocation, there is no room for 'marginal discussions.' In an interview with the ILNA news agency, this member of the Tehran Chamber of Commerce emphasized that removing the dollar from foreign trade is an ideological discussion, and China has initiated this discussion with the aim of becoming the world's leading economy, starting efforts in dollarization and 'team pulling.' The discussion of moving away from the dollar in Iran's economy was raised by Ali Khamenei in his first speech of the year 1402 (2023) and he urged officials to prioritize this matter. Iranian officials have consistently tried to address currency crises over the past decades by discussing ideas such as 'removing the dollar from transactions' or 'replacing other currencies instead of the dollar,' and have accordingly passed some laws and administrative directives. Recently, the directive from Mohammad Mokhber, the first vice president of Ebrahim Raisi, regarding the prohibition of contracts in dollars with foreign athletes and coaches, although justified as a means to prevent the accumulation of complaints in international sports forums, has been viewed by some observers as part of the idea of 'dollarization' in Iran's financial interactions. This idea was described as 'Dollarization of Iran's economy is just a dream' in the headline of the 'Asr-e Eghtesad' newspaper in Tehran on Wednesday, June 10. Ghalibaf speaks of an annual waste of 104 billion dollars, the Central Bank Governor talks about economic progress, and the vice president's directive for 'dollarization' in sports; the prohibition of 'dollar' contracts with foreign athletes and coaches, the economic policies of the Islamic Republic; a factor in capital flight and the relocation of some factories. Verifying the Islamic Republic's prediction of the end of the U.S. dollar's dominance is highly exaggerated. Research report: Iran's high-risk ESG rating hinders foreign investment attraction.