Analysts said Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey's natural gas purchases.
ANKARA(BullionStreet): Days after Turkey confirmed Gold for Oil deal with Iran, irritated US is all set to announce fresh sanctions against Iran.
The fresh sanctions, third in line, are aimed at reducing global trade with Iran in the energy, shipping and metals sectors.
The package seeks to ban financial transactions with any person or organization blacklisted for their association with the Iranian government, as well as sales of metallurgical coal and precious metals, a congressional aide said, speaking on condition of anonymity.
The sanctions would end "Turkey's game of gold for natural gas," a senior Senate aide said, referring to reports that Turkey has been paying for natural gas with gold due to sanctions rules.
Second set of sanctions target banks prompting Iran to go for physical gold in return to it's oil. Iran cannot transfer monetary payments to Iran in U.S. dollars due to U.S sanctions against the country’s alleged nuclear weapons program.
The sanctions legislation, which has not yet been unveiled, comes during a crowded calendar as the Senate races to deal with deficit reduction, the defense bill and other pressing issues by the end of the year.
The package would build on current U.S. sanctions, passed almost a year ago, that have slashed Iran's oil revenues.
The goal is to pressure Tehran to stop efforts to enrich uranium to levels that could be used in weapons.
Analysts said Iranians are buying Turkish gold with the Turkish Lira, which is deposited into their bank accounts in exchange for Turkey’s natural gas purchases.