Tehran's Shadow Network: How Iran Secures Dollars Despite Sanctions
Iran's economy has found ways to circumvent US sanctions despite being subject to them for over four decades. The country has developed a complex, multi-layered system that allows it to convert its export revenues into currencies and assets it can use. Oil remains the foundation of this system, with China being Iran's most vital customer.
The Chinese yuan plays a crucial role in this process, as transactions between Iran and China can be settled in yuan, minimizing the need for US dollars. However, this mechanism comes at a cost, with buyers of Iranian oil demanding steep price discounts compared to international benchmarks.
Currency exchange houses and specialized financial intermediaries are also part of this system, allowing Iran to access foreign currency despite being barred from operating normally within the global banking architecture.