(MENAFN) Pakistan plans to ditch the dollar and use euros in its joint business and trade with Iran, mainly because some US sanctions are still in place that could obstruct payments to Tehran.
The Islamic Republic's announcement follows remarks by a senior US State Department official that global banks will face no trouble if they process Iran transactions that are based on euros.
Signs have been mounting lately that a legacy of hefty fines by the US on banks that are caught for violating Iran prohibitions is discouraging businesses from trading with the Persian Gulf Republic.
Basically, the American banks are still banned from dealing with Iran as part of an old US trade embargo that still remains in place, which is effectively blocking any transactions with Iran which is based on US dollars.
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