Hemmati: Details of payment channel to be released in near future
Iran and European signatories of the Iran nuclear deal, officially known as the Joint Comprehensive Plan of Action (JCPOA), will establish a special payment channel in the near future, Governor of Central Bank of Iran (CBI) Abdolnaser Hemmati said.
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Hemmati said the channel will serve as a monetary agreement between Iran and Europe and added the two sides discussed the details of the channel in a meeting held last week in Brussels.
“The channel is to be established based on a common understanding that the Iranian and European businesses are eager to maintain their ties despite the US sanctions,” he noted.
Iran and Europe, Hemmati added, decided to establish a special payment channel to facilitate the transactions between their businesses. “Through the channel, the two sides’ exporters can obtain their foreign exchange income,” he said.
The governor said Iran and Europe want to make operational the channel as soon as possible, adding, the details of the financial mechanism will be released in the near future.
The channel was first presented in a ministerial meeting between Iran and European signatories of the JCPOA held in New York in September.
US President Donald Trump announced in May that Washington was pulling out of the Iran nuclear deal which lifted nuclear-related sanctions against Tehran in exchange for restrictions on Tehran's nuclear program.
A first round of American sanctions took effect in August, targeting Iran's access to the US dollar, metals trading, coal, industrial software, and auto sector. A second round, forthcoming on November 4, will be targeting Iran's energy sector and financial transactions.