Rial Loses Value as New Sanctions on Gold Trading Go into Effect

New U.S. sanctions against Iran, including a ban on gold trading, came in force today. Reacting to the new sanctions, the rial retreated against the dollar in Iran’s open currency markets. On Monday, the currency was traded at 34,000 rials for one dollar. In the days after Rouhani’s victory, the rial had regained some of its lost value, trading as low as 28,000 rials a dollar.

Because of earlier sanctions on banking sector and financial transactions, Iran is increasingly trading its oil for gold with countries like Turkey, and the new ban on gold trading is meant to stop Iran from circumventing those sanctions. 

EU Must Ease Sanctions to Seize Opportunity Opened by Rouhani’s Victory - Iran Envoy

The Iranian ambassador to the European Union, Mahmoud Barimani, said today Rouhani’s election has provided “an opportunity” for EU and now “it's up to the European Union to grasp it.” (Press TV, 1 July)

Barimani made the remark in an interview with EUobserver on Monday.

“We (Iran and Europe) enjoyed a very good relationship for decades, even centuries, so we want the EU and its member states to end what we call this 'transitory period' and to restore cooperation,” Barimani said.

Barimani called for an end to EU sanctions against Iran. He ruled out the possibility of Iran’s suspension of uranium enrichment, but declared Iran’s readiness for more transparency.

“We are ready to show more transparency [on nuclear activities], but I think the relaxation or lifting of sanctions would be a very good sign from the European side,” he said. (Press TV, 1 July)

Photo credit: Headquarters of the European Commission in Brussels (EU)

U.S. Treasury Defends Iran Sanction

US Treasury Secretary Jacob Lew said the economic sanctions against Iran will work, because “the alternatives are worse.” 



“It would be the best thing for Iran and the best thing for the world if economic sanctions worked because the alternatives are worse for Iran and for the world,” Lew said. “I don’t think any (U.S.) president should make the decision about whether or not to go beyond the sanctions without having exhausted the tools available,” he added. (AFP, 1 July)

Lew made the comments on Sunday at a conference in Aspen, Colorado. He called the sanctions the “toughest sanctions in history.”

“We have not seen the kind of slippage in international support for sanctions that some people have speculated about.” 



Photo credit: U.S. Treasury Secretary Jacob Lew (Wikipedia)