Iran’s chief banker offers plans to address oil export cuts

Tasnim – Governor of the Central Bank of Iran (CBI) Abdonnaser Hemmati put forward a number of suggestions to deal with any cut in the export of oil, although he described as “illusory” the US plot to drive Iran’s crude sales down to zero.

In a post on his Instagram page on Wednesday, Hemmati highlighted the Central Bank of Iran’s successful handling of the foreign currency market, and offered plans to deal with the US “illusion” of pushing Iran’s oil exports to zero.

In case of any cut in the export of oil and consequent fall in oil revenues, the administration will need to resort to other options, such as a cut in spending and ways to make up for the lost revenue with other sources of income, he said.

Hemmati also stressed the need to boost non-oil exports, saying the Central Bank will be providing incentives for exporters with revised currency regulating policies.

It came after the White House said on Monday that US President Donald Trump “has decided not to reissue” waivers regarding sanctions against countries importing Iranian oil when the waivers expire “in early May.”

The exact deadline is May 2.

“This decision is intended to bring Iran’s oil exports to zero, denying the regime its principal source of revenue,” the statement from White House press secretary Sarah Sanders read.

Countries that continue to import Iranian oil in large amounts include India, China, South Korea, Japan and Turkey.

US Secretary of State Mike Pompeo said on Monday that Saudi Arabia and the United Arab Emirates have agreed to “ensure an appropriate supply (of oil) for the markets” in order to make up for the loss of Iranian oil in the global market.