Iran’s government is expected to allow banks to use foreign currency, including the US dollar, as long it is registered in the country, the central bank said on Thursday.
A new bill, which was passed on Friday by the supreme leader and signed into law by President Hassan Rouhani, makes foreign banks and other financial institutions eligible to issue and redeem Iranian currency.
The central bank’s decree is intended to ensure that foreign banks operating in Iran can comply with existing sanctions.
The new legislation is a further sign of the growing ties between the two countries, which have enjoyed a more relaxed banking system since the lifting of sanctions in November last year.US President Donald Trump has previously said he would like Iran to allow foreign companies to continue operating in the oil-rich nation.
The US Treasury has previously blocked any efforts by Iran to issue new currencies and have imposed sanctions on Iran’s major oil firms, accusing them of being involved in the illicit enrichment of uranium, and for supporting groups that have waged sectarian and violent violence in the Islamic republic.