File under: USG as global bully.
The first American sanctions on Iran since a moderate cleric won the presidential election there on June 14 went into effect on Monday, expanding the number of penalized industries and imposing rules that theoretically could halt all gold and currency trade by the country, reports NYT.
Iran, reports NYT has increasingly traded its oil and gas for gold with countries like Turkey because of earlier financial sanctions that have prevented the Iranians from using conventional bank payment methods. The Iranian authorities are then able to use the gold to buy dollars and euros needed to purchase other needed imports, or to support the faltering value of Iran’s own currency, the rial.
But, now, bullion dealers in other countries who flout the prohibition risk severe American penalties, including expulsion from the United States precious metals market.
The new sanctions, which also penalize Iran’s automotive industry and any foreign bank that conducts “significant transactions” in the rial, are the result of a bill signed by President Obama in January and an executive order he decreed early last month, before the Iranian election.