Financial Tribune - The governor of the Central Bank of Iran says the European Union’s newly-launched trade mechanism, known as the Instrument in Support of Trade Exchange (INSTEX), needs to be financed by importing oil from Iran to ensure its sustainable operation.

In an Instagram post on Sunday, Abdolnasser Hemmati added that if Europeans currently face obstacles to purchasing oil from Iran, they can open a long-term credit line for Iran to be later repaid through oil import.

He referred to the similar approach taken by Europeans during the negotiations that led to the creation of the mechanism, noting that this can be “a temporary and noteworthy solution”.