In an attempt to force Iran away from pursuing nuclear research, the UN has emplaced extremely harsh economic sanctions preventing almost every country from trading with Iran. In addition to the financial hurdles it’s caused Iran and others who want their oil, it’s also created a complete shift in Irani monetary policy due to their low demand for US dollars. Free Beacon reports on why Iran is forced to use the gold standard and how it’s created trade loopholes:
Turkey has exchanged nearly 60 tons of gold for several million tons of Iranian crude oil, despite its promises to uphold Western sanctions on Iran’s energy sector, according to recent Turkish reports.
By using gold instead of money, Turkey is able to skirt Western sanctions on Iran’s oil trade, particularly those pertaining to SWIFT, the global money transfer service that until recently assisted the Central Bank of Iran and other Iranian financial institutions.
Over the past several months, Turkey has given Iran 60 tons of gold, or more than $3 billion, according to a July 8 report on the Turkish news site Vatan Online. The report was translated by the Open Source Center, a translation service used by the CIA.
“The good news is that sanctions are now so powerful that Iran has been forced to follow Ron Paul’s advice and move back to the gold standard from the dollar. The bad news is that Iran is rapidly accumulating large amounts gold and other minerals with which to barter for goods and services,” said the source.
Gold payments to Iran have been taking place “for some time,” state the Turkish reports, but have peaked in the past few months as global sanctions against Iran continue to choke its economy. In May, Turkish trade with Iran hit an unprecedented high at $1.7 billion, a leap of 513 percent, according to Turkish statistics and various reports.