Iran Working on Oil for Gold Barter

Source: iran-daily.com

Trump's tariffs are at work. After he put the kibosh on the Iran nuclear deal which it turns out was a big scam as none of the countries which supposedly signed on to it actually did. Another one of the Obama administration's slight of hand. The sanctions proposed on Iran beginning August 7 will put an universal ban on Iran buying or acquiring US dollars. In November, further sanctions of restricting purchases of crude oil and investing in Iran's oil sector projects will come into effect.

To counter the effect of the sanctions, Iran is attempting to set up a barter system with Ghana. Iran has an established trade agreement with Ghana where the African country imports a wide range of oil product including bitumen and various kinds of industrial oil. Ghana is a major gold exporter, it is the second largest exporter after South Africa.

Currently Iran has been buying gold from the UAE and South Africa. Iran has been increasing their local stockpile of gold and the have minimized the amount of US dollars. A few months ago, they announced that they would use the Euro in lieu of the dollar for their oil trade.

This is the first step to tie Iran with several African countries to cement bartering agreements and circumvent the use of the dollar. Iran met with ambassadors of Kenya, Algeria, the Ivory Coast, Mauritania and Ghana in an Iran - Africa forum. They discussed to expand the barter trade to include other items like meat and agricultural products.