With US sanctions against Iran officially going back into place on August 6, the Iranian government is scrambling to take some last minute measures to shore up their economy, and particularly their currency, before the sanctions start to hit.
Trying to protect the rial is a high priority, with a former central bank deputy governor and a number of foreign exchange dealers arrested amid the rial plummeting to all-time lows. On Monday, a rash of strict new measures are to be imposed on foreign currency access to try to limit any further falls.
Iran wants to make sure that what foreign currency does flow overseas is strictly allocated to a handful of important industries. The fall of prices for the rial has been heavy related to the surge in the price of gold, as economic uncertainty has many Iranians running to precious metals, and gold imports surged in recent weeks.
US sanctions aim to limit, if not totally eliminate, Iran’s access to foreign markets. That also has Iran trying to make some last-minute purchases while they know they still can. Five new planes were purchased from ATR for the state airline. It’s far short of the new fleet of airliners Iran initially sought, but the best they can do with the US blocking Boeing and Airbus from fulfilling contracts.
Since the August 6 date has been known for months, it’s likely much of the market reaction to the sanctions is already factored in to Iran’s currency pricing. China’s refusal to comply with US sanctions, likewise, is a sign that Iran won’t be totally cutoff from world markets. Still, it will take awhile before the full extent of the US attempt, and its effectiveness, is known.
But the rest 5 countries which signed the accord with Iran would have to continue normal trade with otherwise they breach the accord.It was said that Iran address to UN or ICC against US sanctions,so have these sanctions a legal basis or is a gangsteresc decission of the bully thug?The rest 5 will admit the dictate of the bully?Russia could accept it?It is hard for me to believe that Germany and France will get down so low.In fact only Israel,Papua,Micronesia,Saudia and Colombia will join US demented act
China will not comply with American sanctions. What about Russia? There may be more countries not complying with the sanctions and continue trading with Iran in alternative currencies. The Iran deal was sanctioned by the UN so the US sanctions imposed on Iran are illegal.