Iran minimizes US dollars holding in its foreign exchange reserves

Jafar Mojarrad, Vice-Governor of the Central Bank of Iran, has said that as Tehran is not doing any transactions in US dollar so it has no need to keep dollars in reserves.

By Iaonnis Solomou

Nicosia, July 8 : Jafar Mojarrad, Vice-Governor of the Central Bank of Iran, has said that as Tehran is not doing any transactions in US dollar so it has no need to keep dollars in reserves.

Earlier this year, the Iranian government said that they were cutting their US dollars reserves to less than 20 per cent of Iran's total foreign currency holdings.

Morrajad added that his country kept 10 per cent of its reserves in gold and pointed out that the Euro commanded a lot of respect as a reserve currency.

The Iranian government's decision to minimize its dollar holding in foreign currency reserves was taken following the imposition of sanctions by the US and the United Nations with regard to Tehran's nuclear programme.

The US has blacklisted Bank Saderat and Bank Sepah - both state-owned Iranian banks- and also barred them from dealing with any US financial institutions.

The Iranian Central Bank Vice-Governor insisted that the UN sanctions imposed last December had not affected the country's economy, which enjoyed strong growth.

Sanctions would not stop Iran pursuing its reforms and economic policies, he added.

ANI