Trade Representative: Spanish Banks Do Not Open Accounts for Iranian Merchants

A member of the board of the Iran-Spain Joint Chamber reported on the financial transaction problems faced by Iranian merchants in Spain, including the inability to open bank accounts due to sanctions. Mohammad Hassan Didevar also confirmed reports of Iranian saffron being purchased by Spain and sold as 'Spanish goods.' According to Didevar in an interview with ILNA published on Saturday, October 20, 'Iran has been the main source of saffron that is exported from Spain and presented as Spanish goods in global markets for years.' In recent months, Farshid Manoochehri, the secretary of the National Saffron Council of Iran, similarly stated that rival countries purchase Iranian saffron and package it under their own brand for global markets, akin to what has happened with Iranian pistachios and carpets. He explicitly mentioned that Afghanistan, Spain, China, and the UAE do not consume saffron themselves but export Iranian saffron as their own product to our export destinations at higher prices. While Spain buys Iranian saffron and sells it as Spanish goods in global markets, this board member of the Iran-Spain Joint Chamber noted that banks in Spain do not open accounts for Iranians. According to Didevar, this restriction even applies to Iranians who have purchased property in Spain and obtained residency permits, and while he stated that 'cash payments are not allowed in Spain,' Iranians are unable to carry out 'daily life payments' due to the lack of bank accounts. 'Ten tons' of Iranian saffron are smuggled out of the country every month. This comes at a time when, according to this industry activist, Spain allows Afghans to open bank accounts, and Afghan merchants have gained 'influence' in the Afghan market. Although the board member referred to Western sanctions against Iran's nuclear and missile programs, which have complicated financial transactions with the world, including Spain, he attempted to convey that Iranians have ultimately found ways to overcome these challenges. Didevar stated, 'Iranian merchants in trade with European countries, like trade with other parts of the world, are forced to adopt strategies to circumvent sanctions and conduct their financial transactions through exchange offices in African and Arab countries, an occurrence that significantly increases the cost and risk of trade.' In recent years, Iran has tried to reduce its dollar needs by engaging in barter trade or trading goods for gold in some instances to circumvent certain sanctions. Pistachios, saffron, dried fruits, some petrochemical products, and ceramics are among the export goods from Iran to Spain. Previously, Iran also exported carpets to Spain, but according to the Iran-Spain Chamber of Commerce, Afghan carpets, which 'do not have the quality of Iranian carpets but are cheaper than Iranian ones,' have managed to dominate the market in this country. The Vice President of the National Saffron Council of Iran had also previously stated that due to the inability to 'properly export' saffron and secure markets, 'smugglers are supplying the market, and according to estimates, ten tons of saffron are smuggled out of the country every month.' According to Gholamreza Miri, 'due to sanctions and some internal issues, exports are not managed,' and 'we cannot export saffron to the USA and Saudi Arabia due to sanctions, so our saffron is exported from Afghanistan, the UAE, and Spain to the whole world.' He also added that 'to export saffron to China and India, we have to pay 38% and 14% in tariffs, which is not cost-effective for exporters and increases the final price, leading some buyers to prefer purchasing saffron from Afghan traders or smugglers.' These reports come at a time when domestic saffron consumption has sharply decreased due to low incomes among the Iranian people, and given the rising prices of food, citizens prefer to purchase more essential goods.