Avoiding Sanctions on Dollar Transactions
Iranians are buying Turkish gold bullion in record numbers. The Turkish Deputy Prime Minister Ali Babacan told parliament on Friday that Iran is buying gold with Turkish Lira that has been deposited into their accounts in exchange for Turkey’s purchase of Iranian natural gas.
“As Iran could not transfer the payment to [its own banks] in foreign exchange, the country buys gold with Turkish lira, and then takes the gold to its country. I do not know how Iran transports the gold, but this is the root of the matter. The gold export to Iran in reality becomes payment for the natural gas we buy from Iran,” Babacan said. (Hurriyet Daily News/Reuters, 24 November)