Strengthening relationship despite US sanctions on Tehran.

Iran & South Korea agree cross-currency trade

South Korea and the Islamic Republic of Iran have agreed to switch to national currencies in trade exchanges. This is being done with the aim to strengthen relations, despite US sanctions against Tehran.

The agreement is of great importance to both countries, as these steps indicate that South Korea is concerned about its relations with Iran.

The countries also agreed to make payments and settle their financial and banking accounts using the South Korean national currency, the Won. That will allow South Korean and Iranian companies to continue their exchanges.

The volume of bilateral trade surpassed the $12-billion benchmark last year, according to Iran’s ambassador to Seoul, Saeid Badamchi Shabestari. He also said that the Iranian and Korean economies complement one another. quoted the ambassador as saying: "The fact that Tehran-Seoul relations had been founded on 'reality' would keep the countries determined to deepen the ties in the face of America’s “hostile and illegal unilateral actions.”

Earlier, South Korean Ambassador to Tehran Ryu Jeong-hyun said that despite many European companies leaving Iran under the pressure of US sanctions, South Korean firms understand the significance of the Iranian market and have chosen to stay.

In response to US sanctions, Iran and its trade partners have been negotiating the reduction of the US dollar's share in mutual trade. Russia, Turkey, India, Iraq, Qatar, China and others have been actively making steps to switch to national currencies in settlements in order to bypass Washington’s pressure.

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