Monday, July 9, 2018

De-dollarization reaches Europe as France, Germany, and UK to defy U.S. in continuing trade with Iran

Unlike a decade ago when the world as a whole was in lockstep for the sanctioning of Iran over its nuclear program, that is no longer the case following President Trump's decision to scuttle the 'Iran Deal' negotiated by his predecessor in the White House.  And as the U.S. has begun implementing new sanctions against the Middle Eastern OPEC nation, France, Germany, and even the UK have decided not only to defy Washington in continuing trade with Iran, but are also planning to do so outside the dollar.

Major European countries party to nuclear negotiations with Iran – France, Germany and the UK - have agreed to maintain trade with Tehran independent from the US dollar, said Russia’s Foreign Minister Sergey Lavrov. 
European companies are under increasing pressure from Washington to cut business ties with Tehran. Since the majority of transactions are currently conducted using the US dollar, firms working in Iran face potential US penalties. 
According to Lavrov, the decision particularly concerns small and medium-sized companies. He explained that the participants in the Iranian deal have agreed to work out measures to protect the countries’ businesses from US sanctions. 
Last week, EU lawmakers gave approval for the European Investment Bank (EIB) to do business in Iran in an attempt to save the 2015 nuclear deal. -  Russia Today
Russia and China have already proven over the past five years that trade can easily be conducted outside the dollar and global reserve currency, and that economic sanctions no longer carry the same weight for the U.S. as in the past.  And this of course will see President Trump need to find a different pressure point if he hopes to resolve the Iranian question since they are a much different animal than his earlier foreign policy problem in North Korea.

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