Iraq indicated that it has officially removed the US dollar in trade with Iran by announcing a legal limit for passengers to carry along Euros - instead of the customary US Dollars - into the Islamic Republic.
Iran has removed the US Dollar from its official currency rate reporting platform and replaced it with China’s Yuan in an effort that the media in Tehran say could be a key step toward ditching the greenback in trade.
Ministry of Industry, Mine and Trade plans to provide downstream companies with petrochemical feedstocks on the basis of the official exchange rate for the US dollar which is about 42,000 rials, said the secretary of the Association of Petrochemical Industry Corporations.
Iran’s currency plunged to another record low on Sunday, dropping past 100,000 rials to the US dollar following US decision to reimpose sanctions against Tehran after unilateral withdrawal from the Iran nuclear deal in May.
The European Union plans to switch to the euro for oil purchases from Iran, eliminating the US dollar as the two sides work to protect bilateral trade against possible American sanctions, a report said.