The head of Iran’s central bank (CBI) Abdolnaser Hemmati

A mechanism similar to the EU’s INSTEX trade channel, to be called the Special Trade and Finance Institute (STFI), has been registered in Tehran.

Iran Press/Iran news: The head of Iran’s central bank (CBI) Abdolnaser Hemmati said that the company is expected to facilitate the trade between Iran and Europe, and to help removing the restrictions imposed by US sanctions, Iran Press reported.

Hemmati emphasized that the central bank and the Iranian banking network are using all the means to meet the needs of Iranian companies and economic activists.

He stressed that the financial mechanism of Iran and Europe is just one of these solutions.

Germany, France and Britain launched the Instrument for Supporting Trade Exchanges (INSTEX) in January to facilitate business between Europe and Iran in face of tough U.S. economic sanctions.

The Iranian government’s official news agency (IRNA) cited Abdolnasser Hemmati as saying, "At a meeting with the INSTEX manager and representatives of France and the UK, CBI authorities have fully explained the SFTI mechanism."

The mechanism will initially cover foodstuff and medicine, but its range will broaden gradually.

INSTEX is part of the EU’s efforts to encourage Iran to remain in the nuclear deal following the unilateral withdrawal of the US back in May, by offering an alternative payment channel to keep trade flowing with Iran in defiance of US sanctions.


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