As President Donald Trump continues to follow through with his promises of extreme vetting of incoming foreigners into the United States, one nation on the list of banned travel is taking the tet a tet to the next level. On Jan. 30, the government of Iran announced that in response to their being placed on a list of seven known ‘terrorist’ countries by the Trump Administration, they will enact a ban themselves on the dollar currency.
Tehran plans to ditch the use of the American currency in financial reporting after US President Donald Trump issued a travel ban on seven countries, including Iran.
According to the local news agency PressTV, the Central Bank of Iran is seeking to replace the dollar with a new common foreign currency or use a basket of currencies in all official financial and foreign exchange reports.
The governor Valiollah Seif said it would come into force in the new financial year starting March 21, 2017.
The agency quotes Seif recommending using currencies with a “high degree of stability.”
The decision comes after President Trump temporarily banned citizens of Iran, Iraq, Libya, Somalia, Sudan, Syria, and Yemen from entering the US. – Russia Today
Iran seeking to ban the dollar from sovereign use is not particularly new, as the Islamic nation has been slowly divesting itself of reliance on the reserve currency ever since they had economic sanctions removed from them by the United States late last year. And it has yet to be seen if this announcement today is merely political rhetoric in response to the U.S. banning their citizens from traveling to America, or if they fully intend to accelerate the process of getting rid of all traces of dollar use.
For years the U.S. has used the dollar, and its power over the global reserve, to use the currency as an economic weapon against any nation that strayed away from U.S. hegemony. And now that the world has created multiple options for countries to transact and conduct bi-lateral trade without needing to use the dollar as a middleman, the tables may be turning and the dollar may soon be used as an economic weapon against the U.S. itself.
Kenneth Schortgen Jr is a writer for The Daily Economist, Secretsofthefed.com, Roguemoney.net, and Viral Liberty, and hosts the popular youtube podcast on Mondays, Wednesdays and Fridays. Ken can also be heard Wednesday afternoons giving an weekly economic report on the Angel Clark radio show.