Another Move Away From The Dollar: Iran & Turkey Bilateral Trade Agreement

With every move the U.S. makes to keep the dollar on life support, other countries have had enough already. Here’s the latest…

The WGC does not have ‘official’ information on Iran gold reserves, but it does have into on Turkey, and we see the Turks have been steadily accumulating gold:

Now there are reports from Reuters of bilateral trade agreements between the two nations just last week:

ISTANBUL, Oct 19 (Reuters) – Turkey and Iran’s central banks have formally agreed to trade in their local currencies, Prime Minister Binali Yildirim said on Thursday in a move aimed at increasing bilateral trade.

Under the deal, the Iranian rial and Turkish lira will be easily converted to help reduce the costs of currency conversion and transfer for traders. The countries had been using euros.

“Trading with local currencies is the most significant step to improving economic ties. The central banks of both countries agreed on this issue and they will inform other banks about how the deal will be applied,” Yildirim told a joint news conference with Iran’s First Vice President Eshaq Jahangiri.

“Trading in local currencies will be encouraged and this will contribute to making trading easier and increase the trade volume and diversity,” Yildirim added.

Earlier this month, Turkish President Tayyip Erdogan said the deal was aimed at raising Turkish-Iranian trade volume to $30 billion from current $10 billion.

The deal is in line with Iran’s efforts to dodge unilateral U.S. sanctions, which remain intact despite the lifting of international financial sanctions on Tehran last year under a 2015 nuclear deal between Iran and six major powers.

Interesting use of the word “dodge”. And it is also worth noting that just last week, the Treasury department is stepping up sanctions, not getting all buddy-buddy with Iran as Reuters would imply.

From SD coverage of the Iran sanctions last week:

WASHINGTON – Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated Iran’s Islamic Revolutionary Guard Corps (IRGC) pursuant to the global terrorism Executive Order (E.O.) 13224 and consistent with the Countering America’s Adversaries Through Sanctions Act.  OFAC designated the IRGC today for its activities in support of the IRGC-Qods Force (IRGC-QF), which was designated pursuant to E.O. 13224 on October 25, 2007, for providing support to a number of terrorist groups, including Hizballah and Hamas, as well as to the Taliban.  The IRGC has provided material support to the IRGC-QF, including by providing training, personnel, and military equipment.

Additionally, today OFAC designated four entities under E.O. 13382, which targets weapons of mass destruction proliferators and their supporters, for their support to the IRGC or Iran’s military.
“The IRGC has played a central role to Iran becoming the world’s foremost state sponsor of terror.  Iran’s pursuit of power comes at the cost of regional stability, and Treasury will continue using its authorities to disrupt the IRGC’s destructive activities,” said Treasury Secretary Steven T. Mnuchin.  “We are designating the IRGC for providing support to the IRGC-QF, the key Iranian entity enabling Syrian President Bashar al-Assad’s relentless campaign of brutal violence against his own people, as well as the lethal activities of Hizballah, Hamas, and other terrorist groups. We urge the private sector to recognize that the IRGC permeates much of the Iranian economy, and those who transact with IRGC-controlled companies do so at great risk.”
Just another nail in the dollar coffin…