The End of Iran Restrictions. But What Does It Mean?
While Iran has been interested in nuclear technology since the 1950’s and possibly earlier, they maintained a peaceful agreement with other countries in doing their research.
However, this peace changed in the early 2000s when it was found that Iran had been doing secret research for uranium and its use to create a nuclear bomb.
This led to an investigation by the International Atomic Energy Agency, which resulted in many countries creating sanctions against Iran. These stopped the export of arms, put bans on trading precious metals, and restricted many other activity from Iran to other countries.
Have the Sanctions Been Lifted?
When Hassan Rouhani came into Presidency, one of his goals was to put an end to the sanctions. Negotiations between Iran and Germany, Russia, US, and the UK took place for years, finally coming to an end in December of 2015.
The sanctions are now lifted, with no more investigation into the military in Iran and their nuclear program. One of the most anticipated lifts was the banking sanction, which prevented individuals and companies in Iran from withdrawing or using funds from banks in many other countries around the world.
Now individuals in Iran are able to resume business with other countries, although this does not apply to those who are linked to terrorism.
What are the Financial Advantages to Lifting the Ban on Banking?
With the banking sanctions gone, Iran has stated that it will be able to renew over $30 billion in frozen accounts all over the rest of the world. Unfortunately this doesn’t mean that banks in other countries will welcome them, as many are hesitant to resume business with any company in the Islamic Republic.
Luckily the government in Iran understands this, and is willing to work to show they are financially stable in order to be trusted with banking institutions once again.
One of the first things Iran plans to do is stimulate the economy through a bank package. This will include a variety of opportunities, such as:
- Affordable loans for cars and homes
- Credit lines with low interest rates
- Lowering reserve requirements in banks to 10%
What is the Value of Money in Iran?
Although the national currency in Iran took a hit with the sanctions, things are looking up for the future. Exports as well as trading will increase the strength of their money while reducing inflation. What’s even better is that now that European Union members will work with Iran banks, more money transfers are being made across borders. This is helping to stimulate the economy and has brought in billions of dollars so far!
For a more in-depth article about the subject, be sure to read http://internationalmoneytransfers.org/iran/.