Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
The Bancor is not about liquidity, it is about balance of trade.

As long as the Iranian foreign balance is sound, the government can watch people go "ooh, shiny" about gold with relative impunity. The Iranian state has no commitment tied to gold.

- Jake

Friends come and go. Enemies accumulate.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Dec 30th, 2011 at 08:48:46 AM EST
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Iran Current account balance in percent of GDP
The Current account balance in percent of GDP in Iran was reported at 2.40 percent of GDP in 2009, according to the International Monetary Fund (IMF).

Whats more, Iran has been running a CA surplus since early 90ies, so they should have reserves.

Sweden's finest (and perhaps only) collaborative, leftist e-newspaper Synapze.se

by A swedish kind of death on Fri Dec 30th, 2011 at 10:19:54 AM EST
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Unless their reserves are in vault cash, it could be vulnerable to an assets freeze.

They are, of course, not likely to hold much reserve in accounts under US sovereignty, which would explain why a principle focus of their policy is to prevent other nations from succumbing to US pressure to freeze assets held in those countries.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Sat Dec 31st, 2011 at 02:54:36 PM EST
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