Pakistan to ditch dollar in trade with Iran

Pakistan is preparing to ditch the dollar and use euros in trade with Iran, The Express Tribune reported on March 24.

Pakistani media quoted an the State Bank of Pakistan (SBP) as announcing in a statement that a plan has been prepared to enable Pakistani businessmen to open letters of credit (L/Cs) for imports from Iran in euros instead of dollars.

The policy has been devised because some US sanctions are still in place that could obstruct payments to Tehran, the daily reported.

The SBP has accordingly informed the Ministry of Commerce and other stakeholders in a recent meeting that it was not possible at this stage to open LCs in dollars in trade with Iran.

If the L/Cs were to be opened in dollars, clearance from US intermediary bank would be needed. This is while certain sanctions are still in place in the US and that would cause trouble for the Pakistani businessmen, added the Express Tribune.

/By Trend/