Al-Monitor

Iran's break with dollar easier said than done

The Iranian authorities’ move to ban import orders registered in US dollars presents yet another challenge for the private sector.

A money changer counts out US dollars for a customer, Tehran, Iran, Jan. 20, 2016.REUTERS/Raheb Homavandi

A little over two weeks ago, Iran eliminated another function of the US dollar in its internal workings in a move positioned amid yearslong plans to reduce dependency on the greenback. The consequences will be manifold and interconnected, but there are discrepancies in views concerning what will happen as a result among experts and officials.

On Feb. 28, the Ministry of Industry, Mine and Trade announced by way of a directive that all traders are henceforth barred from registering their import orders in US dollars. The abrupt directive that is effective immediately was put by Central Bank of Iran (CBI) head Valiollah Seif.

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