(Persia Digest) - An expert on China in Tehran believes: “Presently, there are no banks through which China can transfer Iran’s revenues from its oil sales. Not being able to use the dollar to settle accounts is Iran’s problem and China does not deliberately pursue such a goal.”
With the reimposition of secondary US sanctions on Iran, this country is now faced with issues such as receiving money for its oil exports. The Head of the Iran-China Chamber of Commerce and Industry has announced that China will only pay 35-40 percent of Iran’s oil sales to this country in money and will barter trade the balance, and Iran has no options but to sell oil to China.
Are the Chinese kicking Iran while it is down? With these prospects, is Iran’s strategy of looking to the East the right one?
Mohsen Shariatinia, Professor of political sciences at Shahid Beheshti University and researcher on Asia, told Persia Digest (PD): “This is more Iran’s problem rather than China’s. Because there are no banks through which Iran can receive the money for its oil exports. Transferring Iran’s petrodollars is now an impossibility.”
He added: “Forty percent of Iran’s goods are imported from China and the government settles its accounts with its oil sales. China is Iran’s biggest oil customer. But, with the return of financial sanctions, there are no banks willing to make this transfer for Iran. This problem is also seen in other countries, including Iraq and Sri Lanka.”
Shariatinia reiterated: “The volume of trade between Beijing and Tehran is less than one percent of China’s entire foreign trade. This figure is not large enough for China to play such a game.”
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