The sanction of the US is one of the main and threatening challenges to Iran’s economy. One of the main challenges these sanctions have created, is not supplying basic commodities of Iran by European countries.
As you know, besides applying banking and currency sanctions, the US has so limited buying oil by European countries from Iran. The US has announced that if other countries try to buy oil from Iran, will be boycotted like Iran. Despite all these sanctions, there are still some solutions to reduce economic pressures that one of them is setting off resources and exchanging commodities.
Does Set-Off Reduce Pressures on Iran’s Economy?
Set-off or simply barter is one of the business options during the strict sanctions of the US.
But this economic approach ice other approaches has advantages and disadvantages. According to economic experts, this method is most efficient for trading among governments and it is not possible to force traders use this method, since they export their own commodities to receive money instead.
But some other experts believe that during sanctions, set-off will be a suitable way to circumvent sanctions. They maintain that although traders aim at gaining income and receiving money of exporting and importing commodities, they may use set-off considering some preparations.
Exchanging Commodity with National Currency
One of the so effective ways to circumvent sanctions is exchanging commodity with national currency that unfortunately the necessary infrastructures of it have not been made so far. This method is so efficient for Iran whose connection is boycotted and disconnected from global banks but needs its specific infrastructures that seems IRI has not provided it yet.
The main interactions of Iran is with neighboring countries and most of them are inclined to establish exchanges at the level of national currency and some experts believe that not establishing exchanges with national currency is as a result of Iranian officials negligence.
What Are the Challenges of the World’s Resource Set-Off
So many experts believe that the main problems on the way of our exchanges even during sanctions is not making necessary infrastructures. Unluckily, the most traders export their commodities only for receiving money and this has made the work more difficult.