TEHRAN (Commodity Online): Iran is reportedly using gold and oil as an exchange to procure food from Europe-an increasing sign of rising international barter trades between nations.
"Grain deals are being paid for in gold bullion and barter deals involving oil are being offered. Some of the major trading houses are involved”, Reuters quotes a European trader.
Increasing financial sanction from US and the EU has meant that Iran is finding it difficult to source Dollars and Euros- the two main currencies used in international trade. As such, a barter system is a logical choice.
Recently, India and Iran reached an agreement by which India will pay 45% of oil payments in Indian Rupees, which Iran can use to purchase machinery and food from India.
