Iran 'restricting euro transactions'

Source: PressTV
http://www.presstv.ir/detail.aspx?id=128744&sectionid=351020102


As the stagnant European economy weighs heavily on the euro forcing it into a downward spiral, the Central Bank of Iran (CBI) unveils a major plan for converting 45 billion of its euro reserves into dollar and gold ingots.

The CBI's new monetary policy comes against a backdrop of a new phase of economic recession in European states of Greece and Spain which has caused a drop in the value of euro against the dollar in international markets.

There are growing fears that the economic crisis would likely hit other eurozone countries as well.

Meanwhile, informed sources in Iran told Iranian daily Jaam-e-Jam that the monetary plan was to be carried out in three phases, adding that the first stage of the program had already begun.

The new decision comes as the financial crisis that began in the US about two years ago resulted in the sharp devaluation of the dollar, pushing the Iranian government to order the replacement of the greenback with the euro in the country's foreign exchange accounts.

Other countries such as the Persian Gulf littoral states are also reported to be taking major steps for the conversion of their euro reserves into dollar and gold ingots.