Al Monitor | Maziar Motamedi: 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 into motion per a government request conveyed through a�letter penned�by Central Bank of Iran (CBI) head�Valiollah Seif.

In the missive, Seif argued that since Iran�s banking system has no access to dollar transactions because of decadeslong sanctions, using the currency in imports translates into having to employ a network of foreign exchange bureaus instead of banks while also going against the country�s policy of �completely removing the dollar� from its international business dealings. The latter is indeed a policy that�Iran is pursuing on several fronts.

For instance, Tehran is actively seeking bilateral or multilateral currency swap deals with its chief trade partners and has already one in place with�Turkey. Furthermore, it previously announced a plan to�halt the use of US dollars�as the currency of choice in financial and foreign exchange reports from the beginning of the current Iranian year (ending March 20). But that plan ended up being postponed because a sudden break with the greenback was�not deemed feasible�as oil revenues are priced in US dollars, though it remains on the CBI�s agenda.


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