Tehran,Iran, Oct.22
Trend:
The impact of sanctions on Iran's economy depends on the government's plan to tackle those sanctions, and the government can use monetary and swap agreements, former Deputy Minister of Economy and former deputy governor of Central Bank Heydar Mostakhdemin Hosseini told Trend.
Regarding the new round of US economic sanctions against Iran, Hosseini said the US government has announced that they will implement two new rounds of sanctions against Iran from the beginning of this year.
“The goal of the US would be to sanction oil and exporting its products starting from November 4.”
"With reducing Iranian oil exports, the United States plans to turn Iran’s economy into a dampening of oil revenues. In addition to these sanctions, in these recent days we have seen that the US has added twenty new cases to the sanctions list, in which the name of some banks are included.”
"This depends on the structure and planning of the government to meet the barriers." said Hosseini, assessing the implications of the sanctions.
“It seems that Iran and Europe have come to an agreement that they plan to unveil in the first week of November before the new round of sanctions begin,” he said.
"It seems that the agreement does not include large multinational companies, and only mid-sized companies, which is not a problem." he said. “Most of these companies operate in Europe and do not have US shareholders, so these companies can easily cooperate with Iran without being affected by US sanctions.”
The former deputy governor of Central Bank marked monetary and commodity contracts as other ways of reducing the effects of sanctions, and added that the government can use other measures such as monetary and commodity contracts designed based on parties’ demands, such as swapping goods oil and gas.
"We hope the government prepare this package and deal with the sanctions. Of course, Iran has a good experience in this regard. The sanctions began in 1978 with a gentle slope and gradually grew over time. For example, the sanctions against the Iran Central Bank have not been common,” he said.
Hosseini believes that the success or failure of sanctions depends on the functioning of the government.
He said that the government should have the necessary mechanisms, such as reforming the banking system, removing business constraints, directing liquidity towards productive activities, and preventing banks from providing resources for unproductive activities.
"In the external dimension, as mentioned, the use of monetary treaties, the exchange of goods and swaps is another way to reduce the damages of the sanctions.”
