The Ministry of Economic Affairs and Finance, representing President Hassan Rouhani's government, has prepared a draft resolution to establish companies in Iran that can engage in barter trade with foreign companies. Mohammad Lahouti, a member of the Tehran Chamber of Commerce, stated in an interview with Mehr News Agency on Tuesday, February 12, that this decision was made due to "the disruptions caused by the Americans in relation to Iran's trade with the world." The barter trade method (exchange of goods for goods) is a practice from the pre-currency era, which Mr. Lahouti explained as "one of the methods that existed in ancient trade." According to the draft resolution issued by the Iranian Ministry of Economic Affairs and Finance, the use of barter methods in Iran's international trade is permitted under certain regulations. These regulations define barter methods as exchanges of goods, services, or assets without the transfer of money, using instruments such as promissory notes in bilateral or multilateral exchanges. According to Mohammad Lahouti, this method will be implemented in such a way that if the government exports oil, it will receive payment in the local currency of the buyer in one country, and Iranian buyers will be able to purchase goods from that country and, in return for using the local currency in the destination country, deliver the equivalent amount in rials to the Central Bank of Iran. Mehr News Agency reported that both the "qualifications" and regulations for Iranian barter companies will be determined by the Ministry of Industry of the Islamic Republic, and the target countries will also be specified by this ministry. The Iranian Foreign Ministry and the bodies responsible for joint commissions with the mentioned countries are also tasked with taking "necessary supportive measures to facilitate the activities of barter companies in those countries." However, the Mehr report did not mention the readiness or unpreparedness of countries to engage in this type of trade with Iran. The United States, by withdrawing from the JCPOA and reinstating sanctions against Iran, has demanded a change in the Islamic Republic's behavior in the region and avoidance of missile tests, a request that Iranian officials reject. These sanctions have made banking transactions between Iran and other countries very difficult, and efforts by several other JCPOA parties, namely some European countries, to create a new financial and banking channel for Iran are still far from yielding results. Iran has previously engaged in sporadic barter trade with foreign countries during wartime and previous sanctions, but the establishment of a legal infrastructure for certain "selected" companies by the government for this purpose is a new development.
Iran's New Efforts for Barter Trade to Escape Sanctions
Iran is attempting to establish barter trade companies to circumvent U.S. sanctions that have disrupted its international trade. This initiative follows the U.S. withdrawal from the JCPOA and aims to facilitate trade by allowing exchanges without monetary transactions. The success of this strategy remains uncertain as the readiness of potential trading partners is not addressed.
👥 Key Players
📰 What Happened
Iran's government is drafting a resolution to establish barter trade companies to bypass U.S. sanctions, allowing trade without monetary transactions. The plan involves exchanging goods and services using local currencies and promissory notes.
- Iran is establishing legal infrastructure for barter trade companies.
- The initiative aims to mitigate disruptions caused by U.S. sanctions.
💡 Why It Matters
📚 Background
Iran has faced increasing economic pressure since the U.S. withdrew from the JCPOA and reinstated sanctions, affecting its ability to engage in international banking and trade.
Translated from the original and edited for English readers. View original source →
Translation confidence: 85%