published by: Admin
Foreign Insurance Dealings in Euro
Iran is determined to sideline the US dollar in its financial dealings for the past few years and the country’s insurance industry is no exemption, as it has emphasized a shift toward euro both on the local and international scale.
“We clear our insurance premiums for reinsurance coverage to Europeans in euro and will receive our potential damages when they occur in euro as well,” Abdolnasser Hemmati, the head of the Central Insurance of Iran, the industry’s sole regulator, told IBENA.
“Most of the foreign exchange reserves of CII and insurance companies are held in euro,” he added.
Hemmati conceded that “we need the USD and other foreign currencies for the coverage of some existing risks” and said this has imposed additional costs on Iran because it means costlier insurance premiums.
Because decades-long sanctions have cut Iran’s access to dollar transactions and political ties with the US seem to be worsening, Iran has been pursuing the replacement of greenback through several measures, namely currency swap deals and forbidding registration of import orders in USD.
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