#Iranian Rial sanctioned currency

[dinaritexch]

Is it Legal to Buy Iranian Rials in the USA?

When it comes to trading currencies like the Iranian Rial or Iraqi Dinar people ask about the legality, logistics, and practicality of such transactions. Among those questions, the question "Is it legal to buy Iranian Rials in the USA?" is one of the most asked.

The Iranian Rial (IRR) saw dramatic fluctuations from 2000 onwards. The exchange rate ranged from 1,750 to 44,070 IRR per US dollar. Today, one US dollar equals about 42,091.797 IRR as of January 2025. The exchange rate has remained stable around 42,000 IRR since April 2018. US economic sanctions against Iran have been in place for decades. The rial is now a blocked currency that doesn't trade freely on global foreign exchange markets.

The US Department of State has also issued a Level 4 Advisory for Iran. They warn against travel because of terrorism risks, civil unrest, and possible arbitrary arrests of US citizens. This article will focus on the legality of buying the Iranian Rial in the USA, trading it against other currencies on Forex, and how it compares to similar markets like the Iraqi Dinar. And also the legal framework, restrictions, and compliance requirements for Iranian currency transactions in the United States. Readers will learn what current regulations allow them to do.

Legality of Buying Iranian Rial in the USA

The legality of buying Iranian Rial in the US is tied to broader US sanctions on Iran. Since the Iranian government and its financial institutions are under strict economic sanctions due to geopolitical tensions, the US Department of the Treasury has imposed restrictions on Iranian Rial transactions.

Under current laws, it is generally not legal for U.S. residents to engage in financial transactions involving the Iranian Rial unless specific permissions are obtained through the Office of Foreign Assets Control (OFAC). The restrictions are to prevent financial support to flow to the Iranian government or entities tied to its economy.

It is not illegal to have Iranian Rials but buying or trading them in the US through regulated channels is a legal gray area mainly because of restrictions on dealing with Iranian banks or financial institutions. So individuals who want to buy Iranian Rial must be cautious and consult with legal or financial experts to ensure compliance with US laws.

Trading Iranian Rial Against Other Currencies on Forex

Trading Iranian Rials against other currencies on Forex may seem exciting but the reality is more complicated. Unlike widely traded currencies like US Dollar (USD), Euro (EUR) or Japanese Yen (JPY) Iranian Rial is not freely traded on international Forex platforms. Here’s why:

Sanctions on Iran: Most Forex brokers globally avoid offering Iranian Rial because of the same sanctions that restrict its use in the US. So it’s hard to trade Rial against US Dollar or Euro.

Extreme Volatility: Iranian Rial is one of the most volatile currencies in the world due to economic and political instability in Iran. Its value fluctuates wildly and is risky for traders and investors.

Lack of Accessibility: Even outside the US, Forex platforms that list exotic currencies like Rial are few. Traders focus on more liquid and accessible currency pairs.

While trading Iranian Rial against other currencies may be attractive for high risk traders, the limited availability and legal implications make it impractical for most.

Current Legal Framework for Iranian Currency

The US exercises tight control over Iranian currency transactions through multiple regulatory frameworks. The Office of Foreign Assets Control (OFAC) specifically prohibits U.S. financial institutions from processing transactions involving the Iranian rial.

US Treasury regulations

The Treasury Department enforces detailed restrictions on Iranian rial transactions. Foreign financial institutions risk severe penalties if they knowingly conduct significant transactions related to purchasing or selling Iranian rials. Additionally, maintaining substantial rial-denominated accounts outside Iran is prohibited. These regulations stem from Executive Order 13846, which specifically targets Iran's currency operations.

State department guidelines

The State Department's rules focus on limiting economic activities between U.S. citizens and Iran. U.S. citizens cannot engage in most economic transactions with Iran. The Department provides detailed guidance through OFAC's Iran sanctions resource page and offers direct help through their Compliance Programs Division.

International sanctions impact

These international sanctions have hit Iran's economy and currency stability hard. The Iranian economy shrank by 15-20% compared to pre-2012 sanctions levels, which led to a $160 billion loss in oil revenue alone. The effects go beyond direct financial measures, with more than $100 billion of Iran's assets frozen in restricted accounts worldwide.

The European Union works closely with U.S. measures and has put in place restrictions that are "nearly as extensive as those of the United States". These joint efforts have created major economic problems:

The rial lost 56% of its value between January 2012 and January 2014

Prices rose by about 40% during this period

Job losses pushed unemployment to around 20%

This sanctions framework keeps changing through executive orders and congressional legislation. The president can waive almost all sanctions by citing "national interest." However, removing terrorism-related sanctions would need Iran's removal from the state sponsor list.

Restrictions on Buying Iranian Rial

Strict rules control all transactions with the Iranian rial. Complete restrictions affect both direct purchases and financial intermediaries. The U.S. Treasury Department has put broad controls on rial-related activities, which marks the first time sanctions have directly targeted trade in Iranian currency.

Direct purchase limitations

Foreign financial institutions can't easily handle Iranian rial transactions. These institutions might face penalties if they knowingly conduct major transactions related to buying or selling Iranian rials. They also risk penalties for maintaining substantial rial-denominated accounts outside Iran. The Treasury Department wants to make the currency unusable beyond Iran's borders.

Indirect transaction rules

Rules go beyond direct purchases to include various transaction types. U.S. depository institutions can process transfers with Iran only under specific conditions:

The transfer must arise from an authorized underlying transaction

The process cannot involve debiting or crediting an Iranian account

The transaction must comply with specific license requirements

Financial institution policies

Banks and financial institutions need strict compliance measures for dealing with Iranian currency. The Iranian Financial Sanctions Regulations (IFSR) sets clear guidelines for both U.S. and foreign financial institutions.

Banks face heavy penalties for violations, including:

Civil penalties up to $250,000 or twice the transaction value

Criminal penalties reaching $1 million and 20 years imprisonment for willful violations

The rules target major transactions, especially those with the purchase or sale of Iranian rials or derivatives based on the rial's exchange rate. Financial institutions must keep thorough due diligence procedures and detailed documentation of all consignees and intermediaries involved in transactions.

These restrictions have created complex compliance requirements. Foreign financial institutions must avoid new activities that could trigger secondary sanctions while winding down their existing Iran-related business operations.

Impact on Different Transaction Types

U.S. regulations apply different levels of scrutiny to financial transactions with Iran. Understanding these differences is vital to comply with federal laws.

Commercial transactions

The Iranian Transactions and Sanctions Regulations (ITSR) closely monitors commercial dealings. U.S. depository institutions can process transfers only under two main conditions:

The transfer must come from an authorized underlying transaction

The process must not involve debiting or crediting an Iranian account

These institutions face heavy penalties if they break the rules. Civil penalties can reach $250,000 or twice the transaction value.

Personal remittances

Personal, non-commercial remittances have slightly more flexible rules. U.S. depository institutions and registered brokers can handle these transactions if they meet specific criteria. In spite of that, these transfers must avoid:

Money service businesses or hawalas anywhere

Blocked persons under various sanctions programs

Iranian financial institutions blocked under specific regulations

People can carry personal remittances to Iran by hand, but this only works when they carry funds for themselves. The rules don't allow carrying funds for family members or others.

Investment considerations

Investment activities face the toughest restrictions. The rules ban many investment-related transactions, including:

Property purchases, business investments, and fund commitments in Iran need special OFAC licensing. Opening accounts in Iranian banks or depositing funds breaks the rules on new investments.

Foreign financial institutions risk losing their correspondent and payable-through accounts if they knowingly take part in big rial-related transactions. The same applies if they keep large rial-denominated accounts outside Iran. The Treasury Department looks at several factors to judge how significant a transaction is. These include its size, frequency, complexity, and management awareness.

Compliance Strategies and Best Practices

Financial institutions need reliable compliance procedures to handle transactions that might connect to Iranian currency. These procedures include complete record-keeping, careful transaction monitoring, and detailed regulatory reporting.

Record keeping requirements

Banks must keep detailed records for at least five years from their creation date. These records should contain:

Transaction documentation for any amount with Iranian rial

Foreign bank certifications and responses to questions

Supporting documentation for all reports filed

Original business records or equivalents

Banks can maintain easy-to-access records without creating duplicate documentation. They should produce required information during examinations.

Transaction monitoring

Extra due diligence applies to monitoring transactions that could link to Iranian activities. The Financial Crimes Enforcement Network (FinCEN) has seen Central Bank of Iran officials use regional financial institutions to hide illicit transactions.

Banks should follow these monitoring practices:

Ask correspondents for more details about transaction nature and involved parties

Check accounts and transactions for exchange houses that violate sanctions

Reach out to correspondents who enable suspicious third-country transactions

Regulatory reporting

Banks must file reports for different transaction types based on specific characteristics. The reporting requirements for electronic funds transfers include:

SWIFT transfers under $10,000 CAD with Iranian rial

Cash receipts of any amount with Iranian connections

Virtual currency exchanges involving Iranian rial

Banks should treat all Iran-linked transactions as high-risk and watch them for suspicious activity. The institution's financial crimes compliance team must know about any transactions involving Iran.

Commercial aviation services need extra watchfulness because designated Iranian airlines have tried to dodge sanctions before. Banks should look at additional signs and circumstances, like customer history and other red flags, to decide if a transaction seems suspicious.

Future Outlook and Regulatory Changes

The Iranian government's latest currency regulations show the most important changes in the financial world. Iranian authorities have tightened their grip on foreign currency exchanges. They now treat unauthorized transactions and online advertisements as criminal offenses.

Pending legislation

The Central Bank of Iran's new decree makes several activities illegal without proper permission:

Unauthorized currency transactions in virtual spaces

Online buying and selling of currency

Futures trading and brokerage services

Currency transfer promotions

These rules hit small currency exchange businesses hard. They now risk criminal charges and could lose their licenses. Tehran seems to focus on lifting the rial's value through domestic measures rather than seeking relief from sanctions.

Policy trends

Iran's government has approved rules for cryptocurrency trading, which marks a new direction in financial policy. The country can now process import payments using digital currencies. We saw this in action with the first official $10 million automobile import order paid in cryptocurrency.

Local banks, currency exchanges, and licensed miners have received permission from Iran's Central Bank to handle import bills through cryptocurrencies. The country has also set rules for bitcoin mining and lets miners use subsidized energy.

Market implications

The economic outlook for 2024 looks tough. Experts predict:

GDP growth will average 1.9% year-over-year

Inflation will hover around 30% after hitting 45% in 2023

Black market rates will move between 500,000 and 600,000 rial to the dollar

High money supply growth and sanctions continue to drive inflation higher. The government needs to remove fuel subsidies to manage energy use. This change will push inflation up and reduce how much people can spend.

Iran's currency has lost more than 90% of its value since sanctions returned in 2018. This drop points to bigger economic troubles, with Iran's official inflation rate reaching about 35%.

Iran's economic path raises red flags as investment drops and inflation eats away at living standards. The government tried to control the exchange market but faced setbacks. Almost half of the country's exchange offices closed last year.

The economy might grow if sanctions on Iranian oil ease up. Yet people will still struggle through 2024 with high inflation and weaker buying power. These factors suggest Iran's currency markets will stay volatile, affecting both local and international deals.

Comparing the Iraqi Dinar and Iranian Rial

The Iraqi Dinar has gained some popularity among speculative Forex traders, with several online exchange services offering Dinar trading options. These platforms often boast low fees, moderate commission structures, and detailed guides to trading. Unlike the Iranian Rial, which is heavily restricted, the Iraqi Dinar can legally be purchased and traded in the USA. Here are some key distinctions:

Legal Accessibility:

Iraqi Dinar: Legal to buy, sell, and trade through authorized brokers and exchange platforms.

Iranian Rial: Subject to U.S. sanctions; trading or buying is generally prohibited.

Market Stability:

Iraqi Dinar: Relatively more stable, with moderate fluctuations.

Iranian Rial: Known for extreme volatility due to political and economic instability.

Trading Platforms:

Iraqi Dinar: Available on several top online Forex services with transparent fee structures.

Iranian Rial: Rarely found on Forex platforms due to sanctions and limited global demand.

Tips for Trading Foreign Currencies

If you’re interested in foreign currency trading, consider the following:

Choose a licensed broker offering Iraqi Dinar exchange services with low fees and transparent commission rates.

Research top online Forex services for Iraqi Dinar or other accessible currencies that fit your investment goals.

Be cautious of online platforms promising guaranteed profits from speculative currencies.

Stay updated on international sanctions and their impact on the currency market.

Conclusion

U.S. regulations on Iranian Rial transactions need careful analysis of several key aspects. OFAC and Treasury Department guidelines enforce a strict legal framework that substantially restricts direct purchases and financial intermediary involvement. These limits apply to commercial deals, personal money transfers, and investments.

Banks and financial institutions must stick to strict compliance rules. They need to keep detailed records and watch transactions closely. Anyone breaking these rules faces tough penalties - fines up to $250,000 or double the transaction value, plus possible criminal charges.

The Iranian Rial faces tough times ahead in 2024, according to market forecasts. Financial experts expect inflation to hover around 30% while the currency's value drops further. Dinarit.com offers reliable updates on currency rates and regulations for readers who want to learn more.

Iranian currency transactions exist in a complex world shaped by local policy shifts, crypto adoption, and international sanctions. U.S. citizens can still make personal, non-commercial money transfers with some flexibility. Yet they should be extra careful and follow all current rules before getting involved with any Iranian Rial activities.

Source: Dinarit

[head-post]

Iran’s central bank blocks cryptocurrency payments

The Central Bank of Iran (CBI) suddenly blocked payment gateways for cryptocurrency exchanges, marking the third such restriction in recent months.

The restriction came weeks after the central bank’s decision to freeze the bank accounts of a cryptocurrency exchange and the subsequent suspension of payment processing services in November. This was due to concerns about speculation in the Tether (USDT) market and money laundering risks.

The CBI statement came as the Iranian government reunited foreign exchange rates as the rial hit a record low against the US dollar on Saturday. However, industry leaders condemned the move as “unprofessional” and harmful to the country’s digital economy.

Operators of the cryptocurrency platform warned President Masoud Pezeshkian in an open letter that the restrictions threatened more than 5,000 skilled jobs and dozens of knowledge-intensive companies in the sector.

These restrictive and destructive decisions in technology policymaking not only eliminate Iran’s limited opportunity for economic growth through new technologies but also drive away the country’s most important asset – its capable human capital.

Meanwhile, the CBI’s intervention targets Iranian currency payment channels used by digital currency exchanges. Officials have previously warned payment service providers about unauthorised instant settlement systems that operate outside the banking structure and help avoid official channels and sanctions.

Industry supporters argue that cryptocurrency trading has provided Iranians with investment opportunities amid high inflation and limited traditional options. They also argue that blocking cryptocurrency payments stands in stark contrast to the authorities’ promises.

Read more HERE

[famouscenes3]

Iran Says 2025 'Important Year' for Nuclear Issue

Iran, bracing for a possible re-imposition of incoming U.S. president Donald Trump's "maximum pressure" policy, said on Saturday that 2025 would be an important year for its nuclear issue.

Trump in 2018 reneged on a deal struck by his predecessor Barack Obama in 2015 in which Iran agreed to curb uranium enrichment, which can yield material for nuclear weapons, in return for the relaxation of U.S. and U.N. economic sanctions.

"2025 will be an important year regarding Iran's nuclear issue," Foreign Minister Abbas Araqchi told reporters in Beijing, adding in remarks aired by Iran's state TV that he had discussed the issue in talks with his Chinese counterpart.

He did not mention Trump by name, however, or spell out how the year might be significant.

Iranian leaders' main concern may be that Trump could empower Israeli Prime Minister Benjamin Netanyahu to attack Iran's nuclear sites, while further tightening U.S. sanctions on its crucial oil industry.

The Iranian rial on Saturday hit a new all-time low against the U.S. dollar amid uncertainty about Trump's arrival in the White House on Jan. 20.

The rial plunged to 820,500 to the dollar on the unofficial market, compared to 808,500 rials on Friday, according to Bonbast.com, which reports exchange rates. The bazar360.com website also said the dollar was being sold for about 820,500 rials.

Also facing an inflation rate officially put at about 35%, Iranians seeking to shelter their savings have been buying dollars, other hard currencies, gold or cryptocurrencies, and the rial has dropped about 18% in all since Trump was elected in November.

https://www.newsmax.com/newsfront/iran-nuclear-issue/2024/12/28/id/1193157/

[ashkanbayatpour]

Continuing Long-Term Financial Sanctions against Iran

When Joe Biden, then a presidential candidate, outlined his foreign policy objectives to Foreign Affairs in 2020, he asserted, “it is past time to end the forever wars.” This referred to the prolonged and costly engagements the United States experienced in Afghanistan and Iraq. At the same time, Biden spoke of diminishing the importance of the Middle East in American military strategy and reducing boots on the ground across the region.

However, the Biden Administration largely stayed the course in its approach to countering and containing Iran while supporting nascent democratic movements in the country. In November 2021, Secretary of Defense Lloyd J. Austin III delivered a major policy speech in Bahrain that emphasized a US commitment to preventing Iran’s acquisition of a nuclear weapon, by diplomatic channels if possible, and with a look at “all options on the table” should that fail to keep America secure.

One longstanding plank in this strategy has involved freezing Iranian assets. In November 1979, President Jimmy Carter signed an executive order under the International Emergency Economic Powers Act (IEEPA) in response to the Iranian Revolution and overthrow of the US-backed Shah. This order froze all interests and property of the Iranian government under US jurisdiction or in control or possession of US persons. While billions of dollars were subsequently released in 1981 as part of the Algiers Accords, which enabled the release of US Embassy workers in Tehran, various sanctions have been in place.

From 2009 to 2017, the Obama Administration employed the National Emergencies Act and IEEPA-authorized sanctions as a pressure point in forcing Iran to scale back its nuclear program and negotiate. Foreign institutions and companies that delivered material support to Iran’s financial system, even though processing Iran-tied transactions, were at risk of being excluded from the US financial system, which drives much of global commerce.

In response, foreign banks holding Iranian foreign exchange reserves froze Iran’s access. Subsequent requests by Iran for payments or transfers were denied (even in cases where transactions would be technically allowed under humanitarian trade exemptions. The effect weakened Iran’s currency and the rial and exposed the country to balance payment risks. This made it challenging for Iranian companies to conduct business abroad and for parties to make foreign direct investments.

There have been some reprieves to this scenario over the past decade. In 2014, an interim nuclear accord with Germany, Britain, Russia, China, France, and the United States enabled the repatriation of $4.2 billion in Iranian oil revenues held in foreign accounts.

The following year, the signing of the Joint Comprehensive Plan of Action (JCPOA) enabled Iran access to $100 billion in international assets in return for significant reductions in its nuclear program. However, in 2018, incoming president Donald Trump reimposed the majority of these US sanctions while engineering a withdrawal from JCPOA, citing a lack of cooperation on nuclear curtailment.

By the end of 2020, Iran’s foreign exchange reserves totaled $115.4 billion, with the International Monetary Fund (IMF) estimating that only $12.2 billion of that amount was readily accessible. Japan and South Korea, which have traditionally purchased much of their oil from Iran, hold such reserves in significant quantities. They are also held by Iraq, which depends on its neighbor for electricity, and by countries such as the UAE, Turkey, Germany, India, and China.

The current sanctions seem to be in place for the long haul. In September 2023, Iranian oil revenue valued at $6 billion was set to be freed up for humanitarian uses as part of a prisoner swap deal set to release five American hostages. Unfortunately, the following month, the terrorist group Hamas launched attacks on Israel, and the deal was suspended. While the Biden administration did not accuse Iran of having been directly involved in the attacks, the White House emphasized that Iran’s decades-long policy of funding and training Hamas operatives makes it complicit in the attacks.

[jobaaj]

Do you know of Iran's famous 1,000 year old Rayen Castle? It's a great historical monument, the second largest adobe monument in the world, a UNESCO World Heritage Site, and it's on SALE!!

You read that right.

19 of Iran's historical cultural treasures are being put on lease for 26 years for business development to help the country in its troubled times. But what kind of trouble is the Islamic country facing?

🛑 In February 2023, the Iranian rial experienced a significant decline, with an exchange rate of around 600,000 rials to the dollar. This sharp currency devaluation exerted immense pressure on the country's import bills.

🛑 Consequently, inflation surged above 50%, reaching approximately 53% in recent reports, leading to a staggering increase in food prices of around 70%!

🛑 The country has been witnessing ongoing protests, ignited by the unexplained death of Mahsa Amini while in the custody of Iran's notorious 'Morality Police.' This tragic incident prompted hundreds of women to take to the streets, boldly discarding the mandatory hijab.

🛑 These protests have persisted for over 200 days, fueled by dissatisfaction with the government's actions. Sadly, the government's attempts to suppress the unrest have resulted in a reported death toll of over 750 people, failing to extinguish the flames of dissent.

🛑 Adding to Iran's challenges, it has been subjected to severe sanctions imposed by the US since 2018, causing a significant economic slowdown due to reduced energy exports and trade.

How badly is the Iranian economy in need of funds?

Very badly. The country, which currently produces around 1 million barrels of oil per day, won't be able to meet it's arrears even if it produces and sells 3 million barrels per day!!!!

Iran is unable to pay for senior citizens' pensions as 55% of senior citizens don't receive pensions while 35% of them live below the poverty line!!

This forces us to ask the question: Will History and Culture be the collateral damage of Iranian politics??🔻🔻

https://www.linkedin.com/posts/casakshamagarwal_globaleconomy-iran-currency-activity-7064916137435611136-bj5s?utm_source=share&utm_medium=member_desktop

[hostor-infotech]

Iran’s currency hits all-time low as EU prepares more sanctions | Economy News

Iranian rial crosses 500,000 to the US dollar as prices of food and essentials continue to rise. Tehran, Iran – Iran’s national currency has hit an all-time low as the European Union prepares to impose new sanctions on the country in the midst of ongoing tensions with the West. The United States dollar surpassed a rate of 500,000 rials in the open market on Monday, breaking an important…

[weelectronicstudentreviewstuff]

Iran's Currency Hits Lowest Value Ever Against Dollar Amid Severe US Sanctions

Iran’s Currency Hits Lowest Value Ever Against Dollar Amid Severe US Sanctions

File photo of Iranian money changer with a wad of Iranian notes with Ayatollah Ruhollah Khomeini’s image in Tehran. (AP Photo/Hasan Sarbakhshian, File)

The rial unexpectedly rallied after President Donald Trump’s decision to withdraw the US from the nuclear deal and reimpose crippling trade sanctions over two years ago.

Associated Press Tehran

Last Updated: June 20, 2020, 5:56 PM IST

[serenata-your-neighborhood-lefty]

Why has the coronavirus situation gotten so bad in Iran? Ans: sanctions imposed by the US government 

Iran's dire economic situation, under ever-harsher United States sanctions, means the regime's options to control the outbreak are limited. "[Iran] have been put in a position where they really can't afford to shut down the economy for long periods of time," Barbara Slavin, the director of the Future of Iran initiative at the Atlantic Council, told the ABC. The country's currency, the Rial, has fallen to one-tenth of its value in the past five years. "I call the [sanctions] policy cruel and counterproductive [because] the victims are ordinary people," Ms Slavin said. The Iranian Government's lack of money is affecting everything from health to education. Stories of extreme poverty are sparking outrage inside Iran, a country considered to have sophisticated health and education systems. The US shows no sign of easing sanctions. The cost of medical care and medicines have risen to levels many Iranians say they can no longer afford. Even as Iran's most recent spike continued to worsen, the US imposed new sanctions on 18 Iranian banks on October 10, effectively cutting them off from international markets. The regime has struggled to source supplies for battling the outbreak, because of the restrictions of international transactions. Ms Slavin said "[The US government] know it's not going to change any Iranian policies, it's just to show how tough they are, how macho they are... and it’s disgusting”

Tl;dr The US government is managing to kill tens of thousands of people from coronavirus even outside their own country.

[israelyahc668]

The entire World Weakest Currencies 2020

In 2015, among our most prominent blog sites had a look at the world's weakest money.

You'll note that nothing much altered from the 2019 version. This is to be anticipated with the recurring international pandemic-- as there was no significant opportunity for weak money to expand. Uncertainty creates capitalists to either remain on their cash or stick to the reliable, more powerful currencies.

Here we have a look the world's weakest money (as of August 27th, 2020), valued against the globe's most traded currency, the US dollar.

* Exchange rates sourced from Google Money.

Iranian Rial [1 USD = 42,105 IRR] Once more, the globe's weakest currency was the Iranian rial. Iran has experienced a considerable financial recession as a result of countless sanctions. Without the capability to export petroleum to the worldwide market (worth concerning 70% of yearly earnings), Iran currently encounters a massive deficiency in its national spending plan.

Vietnamese Dong [1 USD = 23,175 VND] Vietnam is still on the difficult path from a central economy to a market one, and this has had an evident impact on its nationwide money. The country has a fairly tiny economy and given that capitalists tend to be skeptical of buying reasonably unidentified money, the dong doesn't play a significant function in the international market.

Indonesian Rupiah [1 USD = 14,697.50 IDR] Indonesia is a financially stable country, nevertheless, its money has a really reduced currency exchange rate. The Indonesian government has actually taken measures to strengthen its national money by elevating rate of interest and getting sovereign bonds, yet the rupiah has actually remained to diminish.

Uzbekistani Som [1 USD = 10,291.68 UZS] Originally pinned to the United States dollar at its intro in 1994, the som prospered in the prohibited black market. By 2017 it was left with nearly no worth versus the United States dollar. That year, the Uzbeki federal government devalued its currency by almost fifty percent in an effort to end decades of market seclusion and also lure capitalists towards the commodity-rich country. While the som remains fairly weak, it has supported.

Sierra Leonean Leone [1 USD = 9,762.50 SLL] Sierra Leone has a rich supply of natural deposits including diamonds, iron ore, gold and chromite ... yet it is one of the world's 10 most poor and also the very least established nations.

This is due to the fact that Sierra Leone's economy continues to struggle under the weight of problem as well as persisting Ebola epidemics. GDP plunged during the 2015 Ebola break out, and in spite of some development, it stays in the quelched classification today.

Guinean Franc [1 USD = 9,666.80 GNF] Comparable to Sierra Leone, neighbouring Guinea is abundant in natural deposits, including bauxite, iron ore as well as ruby and also gold deposits. Nonetheless, Guinea has actually also faced stalled economic development due to political instability as well as Ebola outbreaks.

Laotian Kip [1 USD = 9,109.49 LAK] The world's seventh weakest money in 2020 is an outlier on this list. This is since Laos is the only nation on this checklist whose money was not required to cheapen-- it was initially issued with a really reduced currency exchange rate versus USD back in 1952.

Paraguayan Guarani [1 USD = 6,989.35 PYG] After a deep economic crisis in the late 1990s and also very early 2000s, Paraguay endured climbing up inflation price, financial downturn, corruption, low education and learning quality as well as high joblessness. Although the nation exports cotton and also soybeans, this is not enough to cover the expense of its imports.

Last year, paraguay did go from being the 2nd poorest South American country (by GDP) to the 4th poorest in the area of just 3 years-- but this development has been strongly interfered with by COVID-19.

Cambodian Riel [1 USD = 4,101.44 KHR] When the Cambodian riel was first introduced in 1995, it had not been preferred-- that hasn't changed a lot in the years because. Although the riel is the official money, the United States buck had actually remained in usage in Cambodia since United Nations peacekeeping forces showed up in the early 90s. Lots of Cambodians still choose it-- USD is utilized for a massive 90% of purchases below, triggering the much less prominent riel to have a likewise lower value.

Ugandan Shilling [1 USD = 3,686.64 UGX] The Ugandan shilling initially showed up in 1966, replacing the East African shilling (additionally used in Kenya, Tanganyika and Zanzibar) as Uganda's official currency. Regardless of its relatively reduced worth versus the United States buck over the past couple of years, the Ugandan shilling has continued to be rather stable.

[dinaritexch]

Will The Domino Effect of Currency Depreciation Reach Iraq in 2025? Iraqi Dinar Highlights.

The dramatic currency crisis sweeping through the Middle East has raised concerns about the domino effect of currency depreciation reaching Iraq in 2025. The Turkish lira dropped 38% against the US dollar in 2024. The Syrian pound and Iranian rial haven't fared better, losing 50% and 20% of their value.

Iraq's strong economic connections with these countries make it vulnerable to regional currency problems. Their combined annual trade is a big deal as it means that $20 billion, which could expose Iraq to regional currency instability. The Iraqi Dinar shows early warning signs as it trades 15% below its official Central Bank rate in unsupervised markets.

This article explores the potential ripple effects of regional currency depreciation on Iraq's economy. We'll learn about the factors that might shape the Iraqi Dinar's future in 2025 and beyond.

Understanding the Regional Currency Crisis

The regional currency landscape has undergone significant transformation across Iraq's neighboring countries. Specifically, the Iranian rial has weakened by 20%, the Turkish lira has declined by 38%, and the Syrian pound has experienced a 50% drop against the US dollar.

The current state of neighboring currencies

The severity of currency depreciation becomes evident through these key indicators:

Iranian Rial: Trading at 777,000 per dollar

Turkish Lira: Exceeding 35 per dollar

Syrian Pound: Lost over 90% since crisis onset

Key factors driving regional depreciation

External pressures and domestic challenges have consequently created a perfect storm for regional currencies. The decline of the Iranian rial stems primarily from US and European sanctions. Furthermore, the Turkish lira's depreciation results from growing fiscal deficits and budget imbalances.

Notably, excessive demand for US dollars has emerged as a critical factor across the region. The preference for physical dollars over electronic transfers has intensified, particularly in countries with devalued currencies.

Historical patterns and precedents

The historical trajectory reveals a concerning pattern. Since 2018, the Iranian Rial has lost nearly 90% of its value against the US dollar. Additionally, the Turkish Lira has experienced a similar fate, surrendering over 90% of its value in the past five years.

The banking sector's challenges have played a pivotal role in this crisis. For instance, Iraq's banking system remains underdeveloped, with only four bank branches and five ATMs per 100,000 citizens, compared to the regional average of fourteen branches and thirty-seven ATMs.

The socioeconomic impact has been particularly severe. According to UN data, 90% of Syria's population now lives below the poverty line. The situation has been exacerbated by ongoing conflicts and political instability, creating a challenging environment for currency stabilization efforts across the region.

Global Economic Factors Affecting Iraqi Dinar

Iraq's economic landscape stands uniquely vulnerable to global economic shifts, primarily due to its overwhelming dependence on oil revenues. The nation's financial structure reveals a striking reality: oil accounts for more than 99% of exports, 85% of the government's budget, and 42% of GDP.

International trade dynamics

Iraq faces major challenges with its import-dependent economy. The country earned over $1 trillion from oil exports across two decades, yet its total GDP reached only $253 billion by 2023. These numbers show how much the nation relies on imports to meet its needs.

Key trade indicators show this dependency:

Oil revenues make up 90% of state revenue

Changes in foreign exchange markets directly affect import-dependent sectors

Real non-oil GDP dropped by 9% in late 2022

Oil price implications

The relationship between oil prices and fiscal stability remains critical. Oil prices have followed a downward trajectory since mid-2022, dropping from over $120 per barrel to below $75. Moreover, the IMF projects that Iraq requires a break-even oil price of $96 per barrel for fiscal stability.

Global monetary policies

The Federal Reserve's policies have emerged as a crucial factor affecting the Iraqi dinar's stability. Subsequently, the Fed has implemented restrictions on dollar transfers to reduce currency flows to neighboring countries. These measures have created notable challenges:

Delayed or rejected Iraqi banking requests

Increased pressure on currency liquidity

Restrictions on physical dollar transfers

The monetary authority faces additional hurdles in maintaining stability through its foreign currency auction system. Overall, the central bank's efforts to modernize its liquidity management and anti-money laundering frameworks continue, though progress remains gradual against persistent structural challenges.

The Domino Effect Analysis

Iraq's economic relationships with its neighbors weave a complex web of financial dependencies. Regional currency depreciation could trigger a domino effect that goes beyond exchange rates and affects multiple sectors of Iraq's economy.

Cross-border economic dependencies

Regional economic ties in Iraq have grown massive, as yearly trade with neighboring countries exceeds USD 20 billion. The trade patterns show clear imbalances:

Trade with Iran: USD 10 billion annually (excluding fuel)

Imports from Turkey: USD 11.1 billion

Trade with UAE and China: 68.8% of total imports

Trade relationship impacts

Regional currency instability sends ripples through trade channels. Iraq's position as a major oil exporter makes it uniquely vulnerable to regional economic changes. Oil revenues make up 99% of exports and 85% of the government budget.

The banking sector's structural limitations make these challenges even harder. Commercial banks hold just 8.3 trillion dinars out of 100 trillion in circulation. This means the financial system struggles to handle external shocks.

Currency market interconnections

The currency market dynamics reveal complex interconnections. Generally, the presence of unsupervised currency markets has resulted in the Iraqi Dinar trading approximately 15% below its official value.

The presence of unsupervised currency markets has led to the Iraqi Dinar trading approximately 15% below its official value. New banking controls have further exacerbated dollar availability, with daily dollar sales plunging from a pre-2023 baseline of USD 250 million to just USD 55 million, marking a 78% decline.

The Federal Reserve's closer scrutiny has changed how transactions happen. New compliance measures rejected 80% of transactions at first, though this number has dropped to about 15% now.

Banks face big hurdles in their push to modernize. State-owned banks dominate the sector, while basic banking infrastructure and ATMs remain scarce. This reduces apparent liquidity. These structural challenges make regional currency depreciation's effect on Iraq's financial stability even more concerning.

Digital Transformation in Currency Markets

The Iraqi financial sector has seen a major change from old-school banking methods through digital revolution. The country's banking scene is going through massive tech upgrades, and seventeen licensed digital payment companies now operate in the market.

Role of electronic trading

Iraq's trading systems started changing in 2006 when the Central Bank rolled out automated clearing and settlement systems. The system rollout brought these notable results:

Real-Time Gross Settlement System implementation

Iraq Retail Payment Infrastructure launch

National Retail Switch integration

Mobile payment system deployment

E-payment transactions hit 18 trillion Iraqi dinars (USD 13.70 billion), which shows the electronic platform's true impact. These numbers point to more people using digital financial services.

Cryptocurrency influence

Notwithstanding the absence of a comprehensive regulatory framework, cryptocurrency interest continues to grow among tech-savvy Iraqis. Key growth factors include increasing individual adoption, which opens up new investment opportunities, and the emergence of DeFi platforms that facilitate cross-border transactions. 

Additionally, some view cryptocurrencies as a hedge against inflation, contributing to greater financial resilience in a region affected by political instability. The Central Bank stays cautious and focuses on developing traditional electronic payment systems instead. Cryptocurrency adoption faces major hurdles in the Iraqi market until proper regulatory frameworks exist.

Banking system modernization

Digital transformation in the banking sector stands as a key priority for Iraq's financial future. The Central Bank of Iraq focuses on these areas with each new initiative:

Integrated Financial Management Information Systems

Digital Payment Regulation No.2 of 2024 implementation

Electronic payment tools infrastructure development

These modernization efforts show promise. About 6 million Iraqi employees and retirees now use digital services. Prepaid cards have become the most popular electronic card type, with almost 10 million cards in circulation.

This change goes beyond just making things digital. The Central Bank actively promotes financial technology to boost inclusion and streamline operations. In 2018, financial institutions were approved to provide digital services, including account opening, money transfers, and bill payments through mobile banking.

Future Scenarios for Iraqi Dinar

Iraq's economic outlook for 2025 shows both challenges and opportunities. The International Monetary Fund anticipates notable growth, with the economy expected to expand by 5.3% in 2025.

Economic projection models

Iraq's fiscal health shows mixed signals ahead. The budget deficit will likely reach 7.6% of GDP, which affects the dinar's stability. Key economic indicators for 2025 include projected GDP growth of 5.3% and an inflation rate of 3.5%, reflecting moderate economic expansion alongside manageable price increases.

The oil sector is a vital part of the economy. Iraq wants to reach a production capacity of four million barrels per day by early 2025. These developments underscore the critical role of oil revenues in shaping Iraq's fiscal health amidst ongoing challenges.

Risk assessment frameworks

The Central Bank of Iraq has set up a detailed technical framework to manage risks. The main risk factors are:

Currency market volatility affecting exchange rates

Banking sector vulnerabilities with limited penetration

External payment pressures from trade imbalances

Fiscal sustainability challenges

The banking sector's structural weaknesses create the most important risks, as only 19% of adults have bank accounts. The sector's loans-to-GDP ratio is just 20%, that indicates room for growth.

Potential stabilization measures

Iraqi authorities have clear steps to keep the dinar stable. The Central Bank's strategy works to maintain the currency's value through several channels:

Foreign Reserve Management

Preserving adequate foreign currency reserves

Maintaining strategic dollar reserves for market stability

Banking Sector Reform

Implementing structural reforms to optimize efficiency

Increasing transparency in financial operations

Currency Market Controls

Operating the currency sale window without excessive reserve use

Strengthening regulatory measures to prevent currency smuggling

The government wants to vary revenue sources beyond oil. This plan includes boosting the real sector and reviving industry and agriculture to reduce imports. These measures help reduce pressure on foreign reserves and support currency stability.

The Central Bank shows steadfast dedication to keeping the dinar's value stable through interest rate adjustments and currency window operations. These interventions have helped reduce nominal exchange rate fluctuations despite recent challenges from global health crises and oil price changes.

FAQs

Why are neighboring countries' currencies depreciating, and how does this affect the Iraqi Dinar?

Neighboring countries like Iran, Turkey, and Syria are experiencing currency depreciation due to factors like sanctions, fiscal deficits, political instability, and war. This affects the Iraqi Dinar as Iraq shares significant trade relations with these nations, exceeding $20 billion annually, and operates in unsupervised currency markets where the Dinar often trades below its official rate.

What is the role of the Central Bank of Iraq (CBI) in stabilizing the Dinar?

The Central Bank of Iraq plays a critical role by regulating cash dollar issuance, managing remittances, and implementing banking reforms. In 2024, the CBI reduced cash issuance but increased remittances significantly. Despite these measures, the Dinar's market rate fluctuates due to demand dynamics rather than changes in the central bank's cash supply.

What are the potential scenarios for the Iraqi Dinar in 2025?

The Iraqi Dinar's stability depends on several factors: US fiscal policies toward Iraq, the central bank's monetary strategies, and the demand for dollars in local markets. If geopolitical tensions ease and banking reforms succeed, the Dinar may stabilize. Conversely, increased dollar demand or insufficient reforms could lead to further depreciation.

How do fluctuations in the US Dollar impact the Iraqi Dinar and global currencies?

The US Dollar's performance affects global trade and currencies, including the Iraqi Dinar. In 2024, the Dollar appreciated against Middle Eastern currencies like the Turkish Lira and Iranian Rial while depreciating against others like the Euro and Thai Baht. This volatility underscores the interconnectedness of Iraq's economy with global financial markets.

What measures can Iraq take to prevent the Dinar from depreciating further in 2025?

To mitigate depreciation, Iraq can adopt policies such as aligning its currency model with stable Gulf economies, enhancing banking transparency, curbing unsupervised currency markets, and increasing reliance on SWIFT-based transactions. Strengthening domestic production and diversifying trade partnerships can also reduce dependence on neighboring countries' volatile currencies.

What steps is the Central Bank of Iraq taking to stabilize the Dinar?

The Central Bank has implemented changes such as reducing cash issuance, increasing reliance on SWIFT-based transfers, and improving digital payment systems. It also monitors remittances and currency flows more rigorously to manage market demand and supply dynamics.

Will changes in US policies impact the value of the Iraqi Dinar in 2025?

Yes, US fiscal and monetary policies, including decisions on tariffs, inflation, and international relations, play a significant role in influencing the value of the Iraqi Dinar. The central bank's policies alone cannot fully stabilize the currency without considering external influences.

Conclusion

Iraq's economic future faces its biggest problem with regional currency instability. The Iraqi dinar remains strong against neighboring currency drops, but several factors need attention. Trade relationships worth more than $20 billion with regional partners and heavy reliance on oil revenue make Iraq's currency vulnerable to market shifts.

The banking sector's digital transformation shows promise. Iraq's market now has seventeen licensed digital payment companies, and e-payment transactions have hit 18 trillion Iraqi dinars. These changes have built a reliable financial system that can better handle external pressures.

The Central Bank's steadfast dedication to currency stability through strategic actions is significant. Smart foreign reserve management, banking reforms, and market controls serve as vital safeguards. The projected economic growth of 5.3% in 2025 points to positive momentum, even with ongoing challenges from oil price swings and regional currency shifts.

Iraq needs to broaden its revenue sources beyond oil and build a stronger digital banking system. The mix of smart financial policies, tech advances, and strategic economic planning will shape the Iraqi dinar's stability through 2025 and beyond.

Source:- Dinarit

[xtruss]

Creation of Persian Gulf Token Could Be ‘Tectonic Shift’ to Affect US Dollar, Analysts Say

Russia and Iran started to expand the use of national currencies in foreign trade settlements last year against the backdrop of western sanctions slapped on the two countries.

— Oleg Burunov - Sputnik International | Monday January 16, 2023

CC0/Pixabay/qimono

The potential creation of a Persian Gulf Token by Russia and Iran should not threaten the dollar’s hegemony in the immediate term, but the initiative could help weaken it over time by encouraging other countries to pursue asset-backed currencies, Chris Devonshire-Ellis, chairman of Dezan Shira & Associates, a pan-Asian investment firm, has told Sputnik.

“It may not just be gold. It could be other material assets, such as hydrocarbons, agriculture, other precious metals, gems and even fresh water,” he said.

The chairman of Dezan Shira & Associates added that, “Obviously in terms of gold, the countries to benefit would be those possessing large unmined gold reserves, such as Australia, Russia, South Africa, Indonesia, and Brazil.”

Devonshire-Ellis explained that the emergence of a larger network of asset-backed tokens could help nations bypass western sanctions by providing them with an alternative to the SWIFT banking system, the US dollar, and the euro.

“Countries such as Venezuela, also heavily sanctioned but possessing the world's largest oil reserves, would be keen to see this type of technological development,” he said.

Meeting of the Council of Heads of State of the Shanghai Cooperation Organization (SCO). © Sputnik/Alexei Nikolskyi/Go to the mediabank

He was echoed by Paul Goncharoff, cryptocurrency research director at Dezan Shira & Associates in Moscow, who described the possible creation of a Persian Gulf Token as a “tectonic shift”, which would have serious implications not only for the US dollar but also for central banks around the world.

He pointed out that the emergence of an asset-based token would present a serious challenge to traditional fiat currencies by providing “a very appealing safe haven alternative that cannot be weaponized against the owners and users of such tokens.”

Goncharoff argued: “Should this governmentally supported asset-backed token be officially launched and come into actively traded use, it will not be without significant resistance from several governments and the financial infrastructures that support trade in their fiat currencies.”

He said that he “would expect that this could get quite ugly, with exclusion zones set up in traditional banking venues such as New York, London, Frankfurt, Tokyo, and similar,” adding, “After all, hot wars have been started for less.”

The comments come after a Russian media outlet reported that Moscow and Tehran are discussing the creation of a Persian Gulf token that could replace the dollar, the ruble and the rial in foreign trade transactions.

The outlet quoted Alexander Brazhnikov, executive director of the Russian Association of the Cryptoindustry and Blockchain, as saying that the token will be used as a stablecoin, a digital currency that is pegged to a “stable” reserve asset like the US dollar or gold.

Dumping the Dollar: Will China, Russia, Turkey, and Iran Create a New International Currency?

He added that a special economic zone in the southern Russian city of Astrakhan would begin to receive cargo from Iran later this year, something that is expected to kick off the use of the Gulf token.

Alexei Voylukov, vice president of the Association of Banks of Russia, for his part, recalled in an interview with a separate Russian media outlet that currently, there are settlements in dollars between Russia and Iran, but due to sanctions, payments are made in the two countries’ national currencies.

According to him, the rapprochement between the two makes it possible to establish almost any system of payments between them. Sputnik has reached out to the Central Banks of Russia and Iran for comments on the matter.

In July 2022, Iranian Economic Minister Ehsan Khandouzi announced that the Islamic Republic officially ditched the US dollar for trade with Russia. The same month, the Tehran Stock Exchange launched rial-ruble trading.

Russia's SWIFT Ban: EU Should Think Twice as It's About to Shoot Itself in Foot, Journo Warns

This came after an array of major Russian banks were disconnected from the SWIFT international payment system as part of western sanctions against Russia, which were imposed shortly after Moscow launched its special military operation in Ukraine on February 24, 2022.

In 2019, SWIFT cut access for most Iranian banks under pressure from Washington, which earlier reinstated harsh economic sanctions against the Islamic Republic following then-US President Donald Trump’s announcement to unilaterally withdraw from the 2015 Iran nuclear deal, also known as the Joint Comprehensive Plan of Action (JCPOA).

[collapsedsquid]

Central to the SamSam ransomware scheme’s success were Khorashadizadeh and Ghorbaniyan, who helped the cyber actors exchange digital currency derived from ransom payments into Iranian rial and also deposited the rial into Iranian banks.  To help convert the digital currency ransom payments into rial, Khorashadizadeh and Ghorbaniyan used the following two digital currency addresses: 149w62rY42aZBox8fGcmqNsXUzSStKeq8C and 1AjZPMsnmpdK2Rv9KQNfMurTXinscVro9V.  Since 2013, Khorashadizadeh and Ghorbaniyan have used these two digital currency addresses to process over 7,000 transactions, to interact with over 40 exchangers—including some US-based exchangers—and to send approximately 6,000 bitcoin worth millions of USD, some of which involved bitcoin derived from SamSam ransomware.

While OFAC routinely provides identifiers for designated persons, today’s action marks the first time OFAC is publicly attributing digital currency addresses to designated individuals.  Like traditional identifiers, these digital currency addresses should assist those in the compliance and digital currency communities in identifying transactions and funds that must be blocked and investigating any connections to these addresses.  As a result of today’s action, persons that engage in transactions with Khorashadizadeh and Ghorbaniyan could be subject to secondary sanctions.  Regardless of whether a transaction is denominated in a digital currency or traditional fiat currency, OFAC compliance obligations are the same.  See OFAC’s updated FAQ’s for additional information on compliance requirements for digital currencies.

US Treasury is sanctioning bitcoins now.

[safemoneyirancom]

How to Save and Earn Income in Iran

If you're planning a trip to Iran, you may be wondering how to save and earn income. This article will give you a brief overview of how to save and earn income in Iran. We'll also discuss how to use a credit or debit card to make purchases. Looking more visit https://safe-money-iran.com/.

Costs of living in Iran

Iran's cost of living varies greatly depending on the region and city you live in. While most Iranians are fairly poor, there are also many rich people in the country. The country's top one percent enjoys a standard of living similar to that of the richest countries in the world. However, the average Iranian is well below the average of a middle-class American.

Inflation in Iran is high, and governmental monitoring is poor. Recently, the price of chicken soared right before a holiday, only to drop again after ten days. Even if you are employed, the average Iranian doesn't make more than three hundred dollars a month.

Saving money

The minimum monthly wage in Iran used to be $400 USD, which gave it a purchasing power of about $1200 USD in the US. That was before the sanctions, and with the PPP/GDP ratio at three to one, a minimum Iranian income would have bought the equivalent of almost $1200 USD. However, sanctions have eroded Iranian oil sales and the central bank has struggled to protect its currency. This has led Iranians to rush to informal money changers, driving down the open market value of the rial. This has also pushed up the cost of imported goods.

Using a credit card

If you're traveling to Iran, using a credit card can be a practical way to save and earn income. Iranian banks offer travel credit cards that you can use exclusively in the country. This can save you a lot of time and effort because you won't have to exchange money at local banks. Also, you can monitor your spending through an app.

First, it is important to be familiar with the Iranian currency. The currency is the Rial or Toman, and is used on Iranian coins, banknotes, and supermarket prices. A single Toman is worth approximately 1500 Rials.

Using a cash transfer

The government of Iran has recently announced the use of cash transfers as a way for families to save and earn income. About three million families - or about twenty percent of the total population - will receive one-time cash transfers to cover the cost of one month's expenses. In addition, the government is disbursing low-interest loans for four million households. These loans range up to 20 million rials (about $1200 purchasing power parity dollars).

However, most US banks will not facilitate transfers to Iran and most popular money transfer services do not offer these services. This means that you have to be careful when choosing a money transfer provider. You must ensure that you're only using the money for legitimate purposes, otherwise you could fall foul of US laws unknowingly. To be safe, you should consult the Office of Foreign Assets Control (OFAC) for advice and guidance.

[tastydregs]

Iran Just Made a $10 Million Import Order Using Crypto

Evasion

Iran has purchased $10 million worth of imported goods using cryptocurrency — a move that could allow the country to evade US sanctions.

So far, not much is known about the crypto order first announced by the country's Tasnim news agency. For one, we still don't know which specific cryptocurrency was used or what the large purchase order entailed.

The import order could only be the beginning. Iranian trade official Alireza Peyman-Pak tweeted that "by the end of September, the use of cryptocurrencies and smart contracts will be widespread in foreign trade with target countries," as translated by Google.

Iran is also slated to launch a crypto version of its Rial currency later this month.

The political implications are considerable. As Reuters points out, this purchase may evade the near-complete embargo the United States has placed on Iran.

Crypto Kingdom

This is far from the first time Iran's crypto endeavors have made headlines. A 2021 report from the blockchain analytics firm Elliptic found that 4.5 percent of all Bitcoin mining worldwide took place in Iran due to the country's cheap electricity costs.

Those activities led to the country's government blaming crypto miners for crashing its electrical grid and subsequently banning the practice altogether.

The fact that Iran is using cryptocurrencies as a way to evade sanctions is nothing new. Most recently, a Reuters investigation found that crypto wallet company Binance was aware that Iranians were using its service in spite of sanctions.

Unlike El Salvador and the Central African Republic, Iran has not declared any cryptocurrency as official legal tender — but given this purchase and the planned rollout of the crypto Rial, that's not out of the question.

READ MORE: Iran Places First Crypto-Funded Import Order, Worth $10M: Report [Coindesk]

More crypto governance: FBI Offers Huge Reward for "Cryptoqueen" Accused of Stealing $4 Billion

The post Iran Just Made a $10 Million Import Order Using Crypto appeared first on Futurism.

[hucowmilker]

Ordinary Iranians on Trump Talks Offer: ‘Why Not Try the Americans?’

Iran’s leaders cannot stand the thought of talking to the United States and say President Trump cannot be trusted. But Jamshid Moniri, a 45-year-old building contractor sweating under the Tehran summer sun, summed up what many ordinary Iranians think. “Of course we should talk to Trump,” he said on Tuesday. “What is wrong with talks? We’d be nuts not to talk to him.” The day before, Mr. Trump, who withdrew the United States from the 2015 nuclear agreement with Iran in May despite Iran’s documented compliance, said he was ready to sit down with Iran’s leaders “without preconditions.”

“I’ll meet with anybody,” Mr. Trump said in Washington. “If they want to meet, I’ll meet. Anytime they want.” On Tuesday, in Tehran, Mr. Trump’s open invitation seemed to be on everybody’s mind. Increasingly desperate, many say they would welcome any option that could ease Iran’s economic quagmire. The Iranian currency, the rial, has lost 80 percent of its value during the past year — and nearly 20 percent just in the past few days. Foreign investors have left to avoid new American sanctions that take effect starting in less than a week. And almost every week low-level protests over prices or wages erupt somewhere in the country that have the potential to spread if the economic free-fall worsens.

Mr. Moniri, the contractor, said he feared that what is considered bad now could get a lot worse. “So we should welcome talks,” he said. “Our leaders should welcome this opportunity.” But if anything, Iran’s leaders seem paralyzed by Mr. Trump’s offer. Direct talks with the United States go against their ideology. And in their minds, sitting down publicly with Mr. Trump, whom they have called particularly ignorant, capricious, arrogant and rude, would be an especially humiliating submission to imperialism and pressure.

When dealing with the United States over the past decades, Iranian leaders have often preferred to do it through secret talks, far from ordinary Iranians, who are bombarded daily with organized anti-Americanism from their schoolbooks to state television.  “There can only be talks when Trump respects the signatures of the U.S. administration in the nuclear agreement,” said Hossein Sheikholeslam, a senior adviser to Iran’s foreign minister, Mohammad Javad Zarif. “Trump should reverse the pullout from the nuclear deal, or else there will be no talks.”

Ayatollah Ali Khamenei, the supreme leader, who has enshrined anti-Americanism as a tenet of his legacy, made clear after Mr. Trump renounced the nuclear agreement that he would never talk with the American leader. “Trump will wither away, perish, and his body will decompose, but, the Islamic Republic will still be thriving,” Mr. Khamenei proclaimed in a speech.

His view was reinforced on Tuesday by the commander of the Islamic Revolutionary Guards Corps, the powerful paramilitary force that is intensely loyal to Mr. Khamenei. “Mr. Trump! Iran is not North Korea to accept your offer for a meeting,” said the commander, Maj. Gen. Mohammad Ali Jafari, in remarks quoted by Reuters. “Even U.S. presidents after you will not see that day.”