Iran and Sri Lanka to use Asian currencies for trade transactions

Iran and Sir Lanka have agreed in principle to transact with Asian currencies in trade and financial flows between the two countries, the prime minister’s office announced.

This agreement was reached following a proposal made by Iranian Foreign Minister Dr. Hossein Amir-Abdollahian when he held extensive discussions with Prime Minister Dinesh Gunawardena in Colombo. 

This suggestion comes as a solution for financial transaction for trading with Iran in consequent to US economic sanctions on that country.

Moreover the United States on Wednesday said it had imposed sanctions on a subsidiary of the Central Bank of Iran (CBI), along with two entities based in the United Arab Emirates, one in Turkey and on three individuals for smuggling U.S. technology to the CBI.

The Asian Currency Unit (ACU), also known as the Asian Monetary Unit (AMU), was a proposed basket of Asian currencies, similar to the European Currency Unit, which was the precursor of the euro common currency.

The goal of the ACU was to promote greater free trade and financial flows among Asian countries and loosen the region's dependence on the U.S. dollar.

The Sri Lankan Premier and the Iranian Foreign Minister have focused attention on enhancing bilateral cooperation, trade and investments. 

Visiting Iranian Foreign Minister Dr. Hossein Amir-Abdollahian expressed his country’s keenness in working in close collaboration with Sri Lanka in providing assistance and providing technical knowhow for projects relating to energy, water, agriculture, Nano technology, pharmacology and bio technology.

He expressed his satisfaction on the progress made in in the fuel- tea barter agreement now being implemented between the two countries.

Sri Lanka has already exported tea worth US $20 million to Iran where the country has to pay a sum of $260 million for its fuel purchases from Iran. Iran has also pledged 32 million Euros for Sri Lanka’s rural electrification project. (Bandula)