US to the world: no gold sales to Iran

The United States is pressuring the governments of Turkey, the United Arab Emirates and elsewhere to cease gold sales to Iranians as part of broader sanctions over Iran's nuclear program.

The US, along with many other countries, is working openly to isolate Iran from the international financial system, hoping that the Iranian people – and in particular elites and business class – will demand policy reforms of their government.

A key component of this strategy is an attack on the value of the Iranian rial.

One way of pressuring the currency is to prevent Iranian purchases of foreign gold, which the US government seems determined to achieve.

"As of July 1st all [gold sales] must stop, not just the trade to the government," treasury under-secretary for terrorism and financial intelligence David Cohen told the Senate Foreign Relations Committee Wednesday.

Cohen suggests that current trade sanctions are costing Tehran some $5 billion a month "caused the economy to contract by as much as eight percent last year."

 

Sources: Reuters; The Economic Times; news.com.au; The Hindu