EU advisor: With sanctions Iran’s international trade has become risky

Posted on May 12, 2012

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With imposed sanctions, Iran’s international trade has become risky, EU economic advisor Mehrdad Emadi said.

Advisor was commenting on the latest news reports about China doing business with Iran, purchasing Islamic Republic’s oil, and paying with its own national currency for it.

Emadi said that getting yuan as payment from China for oil exports, limits Iran’s options at international markets.

According to Emadi, Iran is practically left inside the Chinese market because of the currency problem. As a result, Islamic Republic’s international trade has decreased as well.

“Iran’s currency is dropping every day both on international and regional markets, while the country is second in the world in gas reserves, and fourth in oil reserves,” Emadi said. “All this is because of the wrong choices that Iran makes”.

Emadi noted that considering the imposed sanctions, Iran needs to look for more options.

Advisor added that Iran is losing while purchasing Chinese goods, since they cannot compete with goods from other countries, namely from India and Turkey.

One Iran trade professional said lately that Chinese oil companies have for many months been using the yuan to pay for some Iranian oil, after many banks refused to handle payments in dollars, The Wall Street Journal reported.

European refiners have cut purchases of the Islamic Republic’s crude ahead of a planned embargo coming into force this summer, and Asian buyers have also reduced imports to avoid being banned from the U.S. financial system.

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