Iran and South Korea to do busi­ness in eu­ros

The Myanmar Times - - International Business -

IRAN and South Korea are to start trad­ing in eu­ros, legally cir­cum­vent­ing US sanc­tions on dol­lar trans­ac­tions with Tehran.

Af­ter months of talks with Wash­ing­ton, at the urg­ing of Iran, Seoul will “with US ap­proval ... con­vert South Korean won to eu­ros with­out any di­rect in­ter­ven­tion of dol­lars”, Deputy For­eign Min­is­ter Hamid Baedine­jad said.

If other coun­tries with “lo­cal and lim­ited cur­ren­cies” also traded in eu­ros, it would “lead to eas­ier com­merce be­tween Ira­nian busi­nesses and those coun­tries”, he added.

A land­mark deal be­tween Tehran and world pow­ers, signed in July last year and which came into force in Jan­uary, saw many in­ter­na­tional sanc­tions on Iran lifted in ex­change for curbs to its nu­clear pro­gram.

But non-nu­clear-re­lated sanc­tions have re­mained in place, pre­vent­ing Ira­nian banks and busi­nesses from car­ry­ing out global fi­nan­cial trans­ac­tions in dol­lars.

Trade be­tween Iran and South Korea in eu­ros will be­gin to­day.

KEB Hana Bank, Shin­han Bank and Woori Bank, which in May be­came the first South Korean lender to open an of­fice in Iran, will sup­port the trans­ac­tions.

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