Want... Iran's central bank has announced that it will stop mutual settlements in the US dollar with other countries, with the Chinese yuan or renminbi being named as one of the alternatives.
In trade exchanges with foreign countries, Iran uses other currencies, including yuan, euro, Turkish lira, Russian ruble and South Korean won, Gholamali Kamyab, deputy head of the Central Bank of Iran, told the country's Tasnim news agency.
Iran will also consider the possibility of signing bilateral monetary agreements with several countries on the use of other currencies, Kamyab said, adding that the move will ease Iran's foreign trade and economic transactions.
This is not the first time Iran has attempted to reduce its reliance on the US dollar. Back in April 2008, an official from Iran's Ministry of Petroleum was quoted as saying that the country had completely stopped using the dollar in foreign oil transaction settlements.
The announcement comes on the same day Chinese financiers opened up a €2 billion (US$2.25 billion) line of credit to fund four Iranian petrochemical projects. According to National Petrochemical (NPC) deputy-head Mohammad Hassan Peyvandi, the funds will be applied to the construction and transformation the Sabalan, Lordegan, Bushehr and Masjed Soleiman plants.
China has ramped up its oil and gas investments in Iran in recent years, with total Chinese funds put into the sector increasing from US$35 billion in 2010 to more than US$50 billion in 2014. Last year bilateral trade between the two countries reached US$52 billion, an increase of 35% from the previous year, while Iranian exports to China topped US$28 billion, representing about 52% of the country's total exports.