Navigating Sanctions: European Countries Establish Trade Mechanism with Iran
In a significant move, France, Germany, and Great Britain have established a European mechanism to facilitate non-dollar trade with Iran, effectively bypassing US-imposed sanctions. This mechanism, known as the European Special Purpose Vehicle (SPV), is designed to enable monetary transfers between Iran and the European Union, with an initial focus on small, humanitarian transactions.
The development of this system has been a complex process, fraught with delays. It has been in the works for several months and is not expected to become operational until later in the year, as technical details are still being finalized. France and Germany have taken the lead in managing the system, which will be overseen by a German banker and based in France. Britain will also be a shareholder in the SPV, and it is hoped that other countries will join in due course.
However, the SPV will not cover transactions related to the oil sector, which has been one of the sectors most severely impacted by US sanctions. There are also concerns about whether the SPV will be able to achieve its initial short-term goal of enabling Tehran to import essential food and medicine at affordable prices.
This development comes in the wake of the 2015 deal that sought to restrict Iran’s nuclear ambitions in exchange for lifting sanctions on Iran’s economy. The establishment of the SPV represents a significant step in navigating the complexities of international trade and sanctions, and underscores the ongoing efforts of European countries to maintain economic ties with Iran amidst geopolitical tensions.
Advancing Financial Inclusion in Nigeria: A Journey of Transformation
Lagos, NigeriaBanking|Commercial bankingAuthor:Urum Kalu Eke, Group Managing Director, FBN HoldingsTop 5Top 5 forces that will shape international finance in 2023Top 5 female-fronted fintech firmsTop ...
Unlocking Financial Inclusion in Nigeria: The Role of SMEs
Micro, Small and Medium Enterprises (MSMEs) are emerging as a pivotal force in driving financial inclusion in Nigeria. Financial inclusion is increasingly recognized as a catalyst for entrepreneurial growth and enterprise inclusiveness.A study conducted in Southwest Nigeria has shed light on t
What is a time deposit and how does it work
A time deposit, commonly known as a certificate of deposit (CD), is a type of savings account offered by banks and financial institutions. It operates as a fixed-term deposit where you agree to keep a specific amount of money deposited for a predetermined period, known as the term or maturity period
Decoding Annual Percentage Rate (APR): Understanding Its Significance and Functionality
What Is Annual Percentage Rate (APR)?Annual Percentage Rate (APR) is the yearly interest charged to borrowers or paid to investors. It represents the actual yearly cost of funds over the term of a loan or income earned on an investment. APR includes fees and additional costs associated with the tran